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Disposition 23000-D01-2017 Fortis and Summer Village of West Cove

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Disposition 23000-D01-2017 Fortis and Summer Village of West Cove October 13, 2017 Disposition 23000-D01-2017 FortisAlberta Inc. 320 17 Ave. S.W. Calgary, Alta. T2S 2V1 Attention: Mr. Miles Stroh Director of Regulatory FortisAlberta Inc. and the Summer Village of West Cove Franchise Agreement and Municipal Franchise Fee Rider Proceeding 23000 1. On October 10, 2017, FortisAlberta Inc. applied to the Alberta Utilities Commission for approval of an electric franchise agreement with the Summer Village of West Cove. The application was filed according to Rule 029,1 and included a copy of the franchise agreement, Rate Rider A schedule and the electric franchise application form. 2. Notice of the proposed franchise agreement was advertised on August 26, 2017, in the Lac Ste. Anne Bulletin/Community Voice. No objections or concerns related to the proposed franchise agreement were received. 3. The proposed franchise agreement, attached as Appendix 1, is based on the standard electric franchise agreement template approved in Decision 2012-255,2 has a term of 20 years or less, and will be effective January 1, 2018. The Summer Village of West Cove has commenced reading of Bylaw No. 442-17 approving the franchise agreement. 4. The proposed franchise fee of zero per cent, as shown on the municipal franchise fee rider schedule, attached as Appendix 2, maintains the current franchise fee. The proposed franchise fee will remain as a $0.00 charge in the average monthly charge for an average residential customer. 5. The AUC considers that the right granted to FortisAlberta by West Cove to construct, operate and maintain the electric distribution system is necessary and proper for the public convenience and properly serves the public interest. 6. Pursuant to Section 45 of the Municipal Government Act and Section 139 of the Electric Utilities Act, the AUC approves the franchise agreement as filed. 1 Rule 029: Applications for Municipal Franchise Agreements and Associated Franchise Fee Rate Riders. 2 Decision 2012-255: Town of Hinton, New Franchise Agreement Template and Franchise Agreement with FortisAlberta Inc., Proceeding 1946, Application 1608547-1, September 28, 2012. Alberta Utilities Commission October 13, 2017 Page 2 of 2 7. Given the approval of the franchise agreement, and in accordance with Section 125 of the Electric Utilities Act, the AUC approves FortisAlberta’s Municipal Franchise Fee Rider of zero per cent effective January 1, 2018, for customers in the Summer Village of West Cove. 8. Prior to any change in the level of the franchise fee pursuant to the franchise agreement, customers shall be notified as outlined in Section 6 of Rule 029. (original signed by) Derrick Ploof Director, Retail Energy and Water On behalf of the Alberta Utilities Commission Attachments Alberta Utilities Commission October 13, 2017 Page 1 of 1 Appendix 1 – Summer Village of West Cove franchise agreement with FortisAlberta Inc. (return to text) Appendix 1 - Franchise agreement (consists of 37 pages) Alberta Utilities Commission October 13, 2017 Page 1 of 1 Appendix 2 – Municipal franchise fee rider with respect to the Summer Village of West Cove (return to text) Appendix 2 - Municipal franchise fee rider (consists of 3 pages) Summer Village of West Cover Appendix 1 - Franchise agreement Franchise Agreement and Municipal Franchise Fee Rider Page 1 of 37 This is Schedule “A” referred to in the attached Bylaw No. 442-17 of the Summer Village of West Cove Decision 23000-D01-2017 (October 13, 2017) Summer Village of West Cover Appendix 1 - Franchise agreement Franchise Agreement and Municipal Franchise Fee Rider Page 2 of 37 ELECTRIC DISTRIBUTION SYSTEM FRANCHISE AGREEMENT BETWEEN SUMMER VILLAGE OF WEST COVE _________________________________________ - AND - FORTISALBERTA INC. Decision 23000-D01-2017 (October 13, 2017) Summer Village of West Cover Appendix 1 - Franchise agreement Franchise Agreement and Municipal Franchise Fee Rider Page 3 of 37 Table of Contents 1) DEFINITIONS AND INTERPRETATION ....................................................................................................... 4 2) TERM ........................................................................................................................................................ 6 3) EXPIRY AND RENEWAL OF AGREEMENT .................................................................................................. 6 4) GRANT OF FRANCHISE ............................................................................................................................. 7 5) FRANCHISE FEE ......................................................................................................................................... 8 6) CORE SERVICES ....................................................................................................................................... 10 7) PROVISION OF EXTRA SERVICES ............................................................................................................. 10 8) MUNICIPAL TAXES .................................................................................................................................. 10 9) RIGHT TO TERMINATE ON DEFAULT ...................................................................................................... 10 10) SALE OF DISTRIBUTION SYSTEM ............................................................................................................ 11 11) STREET LIGHTING ................................................................................................................................... 11 12) INCREASE IN MUNICIPAL BOUNDARIES ................................................................................................. 15 13) RIGHT OF FIRST REFUSAL TO PURCHASE ............................................................................................... 16 14) CONSTRUCTION AND MAINTENANCE OF DISTRIBUTION SYSTEM ........................................................ 17 15) RESPONSIBILITIES FOR COST OF RELOCATIONS ..................................................................................... 20 16) DISTRIBUTION SYSTEM EXPANSION AND UPGRADE ............................................................................. 21 17) JOINT USE OF DISTRIBUTION SYSTEM ................................................................................................... 21 18) MUNICIPALITY AS RETAILER ................................................................................................................... 24 19) RECIPROCAL INDEMNIFICATION AND LIABILITY .................................................................................... 24 20) ASSIGNMENT.......................................................................................................................................... 25 21) NOTICES ................................................................................................................................................. 26 22) DISPUTE SETTLEMENT ............................................................................................................................ 27 23) INTERRUPTIONS OR DISCONTINUANCE OF ELECTRIC SERVICE ............................................................. 28 24) APPLICATION OF WATER, GAS AND ELECTRIC COMPANIES ACT ........................................................... 28 25) FORCE MAJEURE .................................................................................................................................... 28 26) TERMS AND CONDITIONS ...................................................................................................................... 29 27) NOT EXCLUSIVE AGAINST HER MAJESTY ................................................................................................ 29 28) SEVERABILITY ......................................................................................................................................... 29 29) AMENDMENTS ....................................................................................................................................... 29 30) DISSOLUTION ......................................................................................................................................... 29 31) WAIVER .................................................................................................................................................. 30 32) CONFIDENTIALITY .................................................................................................................................. 30 SCHEDULE “A” ................................................................................................................................................ 31 SCHEDULE “B” ................................................................................................................................................ 34 SCHEDULE “C” ................................................................................................................................................ 35 Page 2 of 36 Decision 23000-D01-2017 (October 13, 2017) Summer Village of West Cover Appendix 1 - Franchise agreement Franchise Agreement and Municipal Franchise Fee Rider Page 4 of 37 ELECTRIC DISTRIBUTION SYSTEM FRANCHISE AGREEMENT THIS AGREEMENT made effective the 1st day of January, 2018. BETWEEN: SUMMER VILLAGE OF WEST COVE, a Municipal Corporation located in the Province of Alberta (the “Municipality”) OF THE FIRST PART - and - FortisAlberta Inc., a body corporate and public utility with its head office in the Calgary, in the
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