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20982-D01-2015 AGPL and the Village of Girouxville Franchise

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20982-D01-2015 AGPL and the Village of Girouxville Franchise October 30, 2015 Disposition 20982-D01-2015 ATCO Gas and Pipelines Ltd. 10035 - 105 Street Edmonton, Alberta T5J 2V6 Attention: Mr. Greg Caldwell Manager Regulatory ATCO Gas and Pipelines Ltd. and the Village of Girouxville Franchise Agreement and Rate Rider A Proceeding 20982 1. On October 29, 2015, ATCO Gas and Pipelines Ltd. applied to the Alberta Utilities Commission for approval of a natural franchise agreement with the Village of Girouxville. The application was filed according to Rule 029,1 and included a copy of the franchise agreement, municipal franchise fee rider schedule, and the natural gas franchise application form. 2. Notice of the proposed franchise agreement was advertised on October 14, 2015, in the Smokey River Express. 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 January 1, 2016. Girouxville has commenced reading of Bylaw No. 15-02 approving the franchise agreement. 4. The proposed franchise fee of 24 per cent, as shown on Rate Rider A schedule, attached as Appendix 2, is a continuation of the current franchise fee. The proposed franchise fee will result in a continuation of $8.83 in the average monthly charge for an average residential customer. 5. The AUC considers that the right granted to ATCO Gas by Girouxville 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 October 30, 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’ Rate Rider A of 24 per cent effective January 1, 2016, for customers in the Village of Girouxville. 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 October 30, 2015 Page 1 of 1 Appendix 1 – Village of Girouxville franchise agreement with ATCO Gas and Pipelines Ltd. (return to text) Appendix 1 - Franchise Agreement Girouxville (consists of 30 pages) Alberta Utilities Commission October 30, 2015 Page 1 of 1 Appendix 2 – Rate Rider A with respect to the Village of Girouxville (return to text) Appendix 2- Rate Rider A (consists of 1 page) Village of Girouxville Appendix 1 - Franchise agreement Franchise Agreement and Rate Rider A Page 1 of 30 NATURAL GAS DISTRIBUTION SYSTEM FRANCHISE AGREEMENT 2015 BETWEEN: VILLAGE OF GIROUXVILLE - AND - ATCO GAS AND PIPELINES LTD. Disposition 20982-D01-2015 (October 30, 2015) Village of Girouxville Appendix 1 - Franchise agreement Franchise Agreement and Rate Rider A Page 2 of 30 Table of Contents 1) Definitions and Interpretation ............................................................................................. 3 2) Term .................................................................................................................................... 6 3) Expiry of Term 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 .......................................................................................... 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 ........................... 13 14) Responsibilities For Cost of Relocations .......................................................................... 16 15) Natural Gas Distribution System Expansion .................................................................... 18 16) Increase in Municipal Boundaries .................................................................................... 19 17) Joint Use of Municipal Rights-of-Way ............................................................................. 19 18) Municipality as a Retailer ................................................................................................. 20 19) Reciprocal Indemnification and Liability ......................................................................... 21 20) Assignment ....................................................................................................................... 21 21) Notices .............................................................................................................................. 23 22) Interruptions or Discontinuance of Delivery Service ....................................................... 24 23) Dispute Settlement ............................................................................................................ 24 24) Application of Water, Gas and Electric Companies Act .................................................. 25 25) Force Majeure ................................................................................................................... 25 26) Terms and Conditions ....................................................................................................... 26 27) Not Exclusive Against Her Majesty ................................................................................. 26 28) Severability ....................................................................................................................... 26 29) Amendments ..................................................................................................................... 26 30) Waiver ............................................................................................................................... 26 31) Confidentiality .................................................................................................................. 27 Disposition 20982-D01-2015 (October 30, 2015) Village of Girouxville Appendix 1 - Franchise agreement Franchise Agreement and Rate Rider A Page 3 of 30 NATURAL GAS DISTRIBUTION SYSTEM FRANCHISE AGREEMENT BETWEEN VILLAGE OF GIROUXVILLE, 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 April 4, 1961 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 twenty (20) years; WHEREAS by Renewal Agreement dated December 28, 1981 the Agreement was renewed and extended for a period of ten (10) years; WHEREAS Renewal Agreement dated June 2, 1992 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 May 12, 2004 the Agreement was renewed and extended for a period of ten (10) years; WHEREAS the Municipality desires to grant and the Company, collectively the “Parties”, desires to obtain an exclusive franchise to provide Natural Gas Distribution Service within the Municipal Service Area on the terms and conditions herein contained; NOW THEREFORE in consideration of the mutual covenants and promises herein contained, the Parties hereby agree as follows: 1) Definitions and Interpretation Unless otherwise expressly provided in this Agreement, the words, phrases and expressions in this Agreement will have the meanings attributed to them as follows: Disposition 20982-D01-2015 (October 30, 2015) Village of Girouxville Appendix 1 - Franchise agreement Franchise Agreement and Rate Rider A Page 4 of 30 a) “Agreement” means this Natural Gas Distribution System Franchise Agreement;
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