Notice

NOTICE FOR OBJECTIONS SUMMER VILLAGE OF MEWATHA BEACH APPLICATION NO. 1396586 ALTAGAS UTILITIES INC. APPLICATION NO. 1396595

Take Notice that the Energy and Utilities Board (the EUB) may continue to process these applications without further notice if no valid objections are received on or before May 17, 2005.

Nature of the Applications An application has been filed with the EUB by the Summer Village of Mewatha Beach (the Summer Village) for approval to renew its natural gas distribution franchise agreement (the Agreement) with AltaGas Utilities Inc. (AltaGas). The Agreement gives AltaGas the exclusive right to deliver natural gas to the residents of the Summer Village for 10 years.

The Agreement has been based on a standard natural gas franchise agreement negotiated by the Alberta Urban Municipalities Association for use by all municipalities in the province. The standard natural gas franchise agreement has been reviewed by the EUB.

The terms of the Agreement have changed substantially from previously approved franchise agreements. Some of the noteworthy changes include a change in responsibility for utility relocation costs caused by municipal purposes, provision of extra services, options for purchase of the distribution system by the municipality, and provisions respecting third party use of the distribution system.

The Agreement also requires AltaGas to pay the Summer Village property taxes as well as a franchise fee for use of rights of way. Previously AltaGas only paid a franchise fee in lieu of property taxes. Franchise fees and property taxes are collected through the Property & Franchise Fee on customer billings.

Between the years 2000 and 2004 the franchise fee, on average, has accounted for about $35.50 of the yearly bill of an average residential sales customer, and in 2005 the franchise fee will account for about $23.75 of the yearly bill.

The franchise fee provided in the proposed agreement would initially be set at 6 per cent of the non-gas components of customers’ bills, which are the fixed charge and base energy charge on residential bills. The combination of the property tax and franchise fee changes would decrease the yearly billing of the Property & Franchise Fee for an average residential customer in the Summer Village by about $14.75 from the amount paid in 2004. An average residential customer uses about 135 GJ annually. Customers should contact AltaGas if they would like more specific details regarding how this change will affect their bill.

The Agreement further allows the Summer Village to increase the level of the franchise fee at its own discretion on an annual basis, without any further review by the EUB. However the Agreement does not allow the Summer Village to impose a franchise fee above 35 per cent. Therefore, if the Summer Village implemented the maximum franchise fee at current rates for distribution, yearly billings of an average residential customer in the Summer Village would increase by about $102.75 from the amount paid with the initial fee.

AltaGas has applied to the EUB for approval to revise its rates so that the costs resulting from the franchise fee and property tax clauses included in the Agreement can be recovered from customers within the Summer Village.

Additional Information To obtain additional information or a copy of the applications, contact: The Summer Village of Mewatha Beach 10511 – 109 Street , Alberta T7P 1A9 Attention: Mr. Garth Bancroft, Administrator Telephone: (780) 349-3651, Fax: (780) 349-3651

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AltaGas Utilities Inc. 5509 - 45 Street Leduc, Alberta T9E 6T6 Attention: Ms. Karen Raitz, Supervisor Franchise Services Telephone: (780) 980-7301, fax: (780) 986-5220

For information about EUB procedures, contact Michele Del Colle of the Utilities Branch at the number listed below.

The application is available on IAR Query through the Applications link on the EUB Web site at www.eub.gov.ab.ca click on the applications link, then click on IAR Query and enter application number 1396586 or 1396595.

To File a Submission If you have a valid interest and want to make a submission, intervention or objection, please state in writing your reasons for objection to the applications. Send one copy of your objection to the Summer Village at the address above, and a copy to [email protected] referencing application 1396586 or 1396595 . If you do not have access to email you can send your objection to: Michele Del Colle, Utilities Branch Alberta Energy and Utilities Board 10th Floor, 10055 - 106 Street , Alberta T5J 2Y2 Telephone (780) 422-3139, Fax: (780) 427-6970, Email: [email protected]

Issued at , Alberta, on April 27, 2005.

ALBERTA ENERGY AND UTILITIES BOARD Douglas A. Larder, General Counsel