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Disposition 21086-D01-2015 AGPL and the Village of Ryley

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Disposition 21086-D01-2015 AGPL and the Village of Ryley November 27, 2015 Disposition 21086-D01-2015 ATCO Gas and Pipelines Ltd. 1200, 909 – 11th Avenue S.W. Calgary, Alberta T2R 1L8 Attention: Mr. Greg Caldwell Manager Regulatory ATCO Gas and Pipelines Ltd. and the Village of Ryley Franchise Agreement and Rate Rider A Proceeding 21086 1. On November 24, 2015, ATCO Gas and Pipelines Ltd. (ATCO Gas) applied to the Alberta Utilities Commission for approval of a natural gas franchise agreement with the Village of Ryley. The application was filed according to Rule 029,1 and included a copy of the franchise agreement, Rate Rider A schedule, and the natural gas franchise application form. 2. Notice of the proposed franchise agreement was advertised on October 28, 2015, in the Tofield Mercury newspaper. 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 natural gas franchise agreement template approved in Decision 20069-D01-2015,2 has a term of 20 years or less, and will be effective February 1, 2016. Ryley has commenced reading of Bylaw No. 2015-911 approving the franchise agreement. 4. The proposed franchise fee of 10 per cent, as shown on the Rate Rider A schedule, attached as Appendix 2, replaces the current franchise fee of five per cent. The proposed franchise fee will result in an increase of $1.84 to the average monthly charge for an average residential customer. 5. The AUC considers that the right granted to ATCO Gas by Ryley to construct, operate and maintain the natural gas distribution system is necessary and proper for the public convenience and properly serves the public interest. 1 Rule 029: Applications for Municipal Franchise Agreements and Associated Franchise Fee Rate Riders. 2 Decision 20069-D01-2015: AltaGas Utilities Inc. et al., Approval of New Standard Natural Gas Distribution System Franchise Agreement Template, Proceeding 20069, March 20, 2015. Alberta Utilities Commission November 27, 2015 Page 2 of 2 6. Pursuant to Section 45 of the Municipal Government Act, RSA 2000, c. M-26, and Section 49 of the Gas Utilities Act, RSA 2000, c. G-5, the AUC approves the franchise agreement as filed. 7. Given the approval of the franchise agreement, and in accordance with Section 36 of the Gas Utilities Act, the AUC approves ATCO Gas’s Rate Rider A of 10 per cent effective February 1, 2016, for customers in the Village of Ryley. 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 5 of Rule 029. (original signed by) Derrick Ploof Director, Retail Energy and Water On behalf of the Alberta Utilities Commission Attachments Alberta Utilities Commission November 27, 2015 Page 1 of 1 Appendix 1 – Village of Ryley franchise agreement with ATCO Gas and Pipelines Ltd. (return to text) Appendix 1 - Franchise agreement (consists of 30 pages) Alberta Utilities Commission November 27, 2015 Page 1 of 1 Appendix 2 – Rate Rider A with respect to the Village of Ryley (return to text) Appendix 2 - Rate Rider A (consists of 1 page) Village of Ryley Appendix 1 - Franchise agreement Franchise Agreement and Rate Rider A 1 of 30 NATURAL GAS DISTRIBUTION SYSTEM FRANCHISE AGREEMENT 2015 BETWEEN: VILLAGE OF RYLEY - AND - ATCO GAS AND PIPELINES LTD. Disposition 21086-D01-2015 (November 27, 2015) Village of Ryley Appendix 1 - Franchise agreement Franchise Agreement and Rate Rider A 2 of 30 Table of Contents 1) Definitions and Interpretation ............................................................................................. 4 2) Term .................................................................................................................................... 6 3) Expiry of Term of Agreement............................................................................................. 7 4) Grant of Franchise............................................................................................................... 7 5) Franchise Fee ...................................................................................................................... 8 6) Core Services .................................................................................................................... 10 7) Provision of Extra Services ............................................................................................... 10 8) Municipal Taxes................................................................................................................ 11 9) Right to Terminate on Default .......................................................................................... 11 10) Sale of Natural Gas Distribution System .......................................................................... 11 11) Provision of Detailed Plans and Equipment ..................................................................... 11 12) Right of First Refusal to Purchase .................................................................................... 12 13) Construction and/or Maintenance of Natural Gas Distribution System ........................... 14 14) Responsibilities For Cost of Relocations .......................................................................... 16 15) Natural Gas Distribution System Expansion .................................................................... 19 16) Increase in Municipal Boundaries .................................................................................... 19 17) Joint Use of Municipal Rights-of-Way ............................................................................. 19 18) Municipality as a Retailer ................................................................................................. 21 19) Reciprocal Indemnification and Liability ......................................................................... 21 20) Assignment ....................................................................................................................... 22 21) Notices .............................................................................................................................. 23 22) Interruptions or Discontinuance of Delivery Service ....................................................... 24 23) Dispute Settlement ............................................................................................................ 25 24) Application of Water, Gas and Electric Companies Act .................................................. 26 25) Force Majeure ................................................................................................................... 26 26) Terms and Conditions ....................................................................................................... 26 27) Not Exclusive Against Her Majesty ................................................................................. 26 28) Severability ....................................................................................................................... 26 29) Amendments ..................................................................................................................... 27 30) Waiver ............................................................................................................................... 27 31) Confidentiality .................................................................................................................. 27 Disposition 21086-D01-2015 (November 27, 2015) Village of Ryley Appendix 1 - Franchise agreement Franchise Agreement and Rate Rider A 3 of 30 NATURAL GAS DISTRIBUTION SYSTEM FRANCHISE AGREEMENT BETWEEN VILLAGE OF RYLEY, a municipality located in the Province of Alberta (the “Municipality”) OF THE FIRST PART – and – ATCO GAS AND PIPELINES LTD., a corporation having its head office at the City of Edmonton, in the Province of Alberta (the “Company”) OF THE SECOND PART WHEREAS by Agreement dated September 7, 1923 made between the Company and the Municipality a franchise was granted to the Company to supply natural gas to the Municipality and its inhabitants, for a period of ten (10) years; WHEREAS by Renewal Agreement dated March 2, 1934 the Agreement was renewed and extended for a period of ten (10) years from September 7, 1933; WHEREAS by Renewal Agreement dated December 6, 1943 the Agreement was renewed and extended for a period of ten (10) years from September 7, 1943; WHEREAS by Renewal Agreement dated April 29, 1954 the Agreement was renewed and extended for a period of ten (10) years from September 7, 1953; WHEREAS by Renewal Agreement dated August 15, 1963 the Agreement was renewed and extended for a period of ten (10) years from September 7, 1963; WHEREAS by Renewal Agreement dated October 18, 1973 the Agreement was renewed and extended for a period of ten (10) years from September 7, 1973; WHEREAS by Renewal Agreement dated February 18, 1984 the Agreement was renewed and extended for a period of ten (10) years; WHEREAS by Renewal Agreement dated June 13, 1994 the Agreement was renewed and extended for a period of ten (10) years; WHEREAS by Agreement dated December 15, 1999 the Municipality consented to the assignment of the Franchise Agreement by Northwestern Utilities Limited to ATCO Gas and Pipelines Ltd.; WHEREAS by Renewal Agreement dated July 26, 2004 the Agreement was renewed and extended for a period of ten (10) years; Disposition 21086-D01-2015 (November 27, 2015) Village of Ryley Appendix 1 - Franchise agreement Franchise Agreement and Rate Rider
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