December 24, 2015 Disposition 21204-D01-2015

ATCO Electric Ltd. 10035 - 105 Street , T5J 2V6

Attention: Ms. Railene Shead Franchise Services

ATCO Electric Ltd. and the Village of Paradise Valley Franchise Agreement and Rate Rider A Proceeding 21204

1. On December 22, 2015, ATCO Electric Ltd. applied to the Alberta Utilities Commission for approval of an electric franchise agreement with the Village of Paradise Valley. The application was filed according to Rule 029,1 and included a copy of the franchise agreement, municipal franchise fee rider schedule, and the electric franchise application form.

2. Notice of the proposed franchise agreement was advertised on November 27, 2015, in the Meridian Booster. No objections or concerns related to the proposed franchise agreement were received.

3. The proposed franchise agreement, attached in 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 February 1, 2016. Paradise Valley has commenced reading of Bylaw No. 284-2015 approving the franchise agreement.

4. The proposed franchise fee of six per cent, as shown on the municipal franchise fee rider schedule, attached as Appendix 2, replaces the current franchise fee of two per cent. The proposed franchise fee will result in an increase of $3.89, to $5.84 as the average monthly charge for an average residential customer.

5. The AUC considers that the right granted to ATCO Electric by Paradise Valley to construct, operate and maintain the electric 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 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 December 24, 2015 Page 2 of 2

6. Pursuant to Section 45 of the Municipal Government Act, RSA 2000, c. M-26, and Section 139 of the Electric Utilities Act, SA 2003, c. E 5.1, the AUC approves the franchise agreement as filed.

7. Given the approval of the franchise agreement, and in accordance with Section 125 of the Electric Utilities Act, the AUC approves ATCO Electric’s Rate Rider A of six per cent effective February 1, 2016, for customers in the Village of Paradise Valley.

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 December 24, 2015 Page 1 of 1

Appendix 1 – Village of Paradise Valley franchise agreement with ATCO Electric Ltd.

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Appendix 1 - Franchise Agreement Paradise Valley (consists of 33 pages)

Alberta Utilities Commission December 24, 2015 Page 1 of 1

Appendix 2 – Municipal Franchise Fee Rider with respect to the Village of Paradise Valley

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Appendix 2 - Rate Rider A (consists of 1 page)

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[1] [2] [3] [4] [1] [2] [3] [4] TABLE 1: TOTAL RIDER A = [1] +[2] = [1] +[2]

Municipal Tax Franchise Fee Rider A Municipal Tax Franchise Fee Rider A Municipal Authority Franchise Fee Municipal Authority Franchise Fee from Table 2 Effective Date Total from Table 2 Effective Date Total (Price Area) (%) (Price Area) (%) (%) (yy/mm/dd) (%) (%) (yy/mm/dd) (%)

ACADIA (M034) 1.44 0.00 1.44 LESSER SLAVE RIVER (M124) 0.31 0.00 0.31 ALLIANCE (V017) 1.70 6.00 05/01/01 7.70 LINDEN (V535) 1.80 6.00 15/01/01 7.80 ALLISON BAY (B219) 0.81 0.00 0.81 (AB45, SK45) 0.77 11.00 15/01/01 11.77 ANDREW (V024) 1.22 3.00 15/08/01 4.22 LOON RIVER CREE (B473) 2.20 0.00 2.20 (T051) 1.34 6.50 10/07/01 7.84 M.D. of GREENVIEW (M016) 0.29 0.00 0.29 BERWYN (V063) 2.96 1.75 07/01/01 4.71 MACKENZIE (M023) 0.59 0.00 0.59 BIG LAKE & KINUSO (M125, V505) 0.79 0.00 0.79 MANNING (T556) 1.73 6.00 12/01/01 7.73 BIG VALLEY (V069) 1.11 1.00 08/01/01 2.11 MANNVILLE (V559) 1.98 6.00 13/03/26 7.98 BIGSTONE (B110) 1.14 0.00 1.14 (V562) 1.82 6.00 15/06/01 7.82 BIRCH HILLS & WANHAM (M019, V896) 1.21 0.00 1.21 MCLENNAN (T574) 2.17 2.75 11/01/01 4.92 BONNYVILLE & ANNEXED AREA (M087, M088) 0.37 0.00 0.37 MINBURN & LAVOY (C027, V523) 0.16 0.00 0.16 BONNYVILLE BEACH S.V. (S096) 0.07 0.00 0.07 MINBURN (V589) 2.71 1.00 08/04/15 3.71 BONNYVILLE, TOWN OF (T093) 0.63 6.80 03/01/01 7.43 MORRIN (V598) 1.13 3.50 12/01/01 4.63 BOTHA (V099) 1.16 3.00 10/01/01 4.16 MUNDARE (T604) 1.63 5.00 13/01/01 6.63 BUSHE RIVER I.R. 207 (B726) 1.06 0.00 1.06 MUNSON (V607) 3.15 1.00 10/07/01 4.15 CAMROSE (C022) 0.52 0.00 0.52 (V610) 2.14 2.00 08/02/01 4.14 CARBON (V129) 1.99 5.00 15/01/01 6.99 NAMPA (V619) 1.27 1.75 11/01/01 3.02 CASTOR (T147) 1.59 5.00 07/01/01 6.59 NORTHERN LIGHT (M022) 0.51 0.00 0.51 CEREAL (V153) 2.15 1.00 12/01/01 3.15 NORTHERN SUNRISE COUNTY (M131) 0.56 0.00 0.56 CLEAR HILLS (M021) 0.90 0.00 0.90 OPPORTUNITY (M017) 0.83 0.00 0.83 COLD LAKE (T189) 1.07 4.25 03/01/01 5.32 OYEN (T648) 1.40 6.00 09/01/01 7.40 CONSORT (V195) 2.44 3.50 07/01/01 5.94 PADDLE PRAIRIE (N221) 1.77 0.00 1.77 CORONATION (T198) 1.82 3.75 04/01/01 5.57 PAINTEARTH (C018) 0.66 0.00 0.66 (V231) 1.74 1.50 08/01/01 3.24 PARADISE VALLEY (V654) 0.83 6.00 16/02/01 6.83 DELIA (V234) 2.03 5.00 11/01/01 7.03 PEACE (M135) 0.78 0.00 0.78 DERWENT (V237) 3.04 6.00 15/05/01 9.04 PEACE RIVER (T657) 1.20 7.00 15/10/01 8.20 DEWBERRY (V246) 1.21 6.00 15/05/01 7.21 PEAVINE (N172) 2.40 0.00 2.40 DOGHEAD I.R. (B218) 0.93 0.00 0.93 PELICAN NARROWS S.V. (S659) 0.31 0.00 0.31 (V252) 1.80 1.50 13/04/17 3.30 RAINBOW LAKE (T690) 1.20 13.00 15/01/01 14.20 DONNELLY (V255) 1.52 2.25 10/01/01 3.77 RED DEER (C023) 0.97 0.00 0.97 DRIFTPILE RIVER FIRST NATION I.R. 150 (B220) 0.11 0.00 0.11 ROCHON SANDS S.V. (S708) 1.09 0.00 1.09 DRUMHELLER & M.D. BADLANDS (K025, M007) 1.16 9.00 10.16 ROSALIND (V717) 2.28 0.50 13/04/09 2.78 EAST PRAIRIE (N174) 3.02 0.00 3.02 RYCROFT (V729) 1.77 3.00 12/01/01 4.77 ELIZABETH (N187) 1.79 0.00 1.79 SADDLE HILLS (M020) 0.57 0.00 0.57 ELK POINT (T291) 1.50 3.60 03/01/01 5.10 SEXSMITH (T754) 1.97 5.50 12/01/01 7.47 ELNORA (V294) 1.10 1.00 03/01/01 2.10 SLAVE LAKE (T766) 0.97 9.40 10/01/01 10.37 EMPRESS (V297) 3.63 2.00 07/01/01 5.63 SMOKY LAKE & WARSPITE (C013, V905) 0.46 0.00 0.46 FAIRVIEW (M136) 0.63 0.00 0.63 SMOKY LAKE (T769) 1.86 5.00 12/02/01 6.86 FAIRVIEW (T309) 1.25 7.50 13/01/01 8.75 SMOKY RIVER (M130) 0.75 0.00 0.75 (T315) 1.18 6.25 06/01/01 7.43 SPECIAL AREAS (A001) 0.34 0.00 0.34 FISHING LAKE (N188) 1.91 0.00 1.91 SPIRIT RIVER (M133) 0.56 0.00 0.56 FLAGSTAFF (C029) 0.60 0.00 0.60 SPIRIT RIVER, TOWN OF (T778) 1.43 5.50 12/02/01 6.93 FORESTBURG (V324) 1.86 9.00 15/01/01 10.86 ST. PAUL, COUNTY OF (C019) 0.53 0.00 0.53 FORT MCMURRAY (K032) -0.18 10.00 14/01/01 9.82 ST. PAUL, TOWN OF (T790) 1.20 7.00 03/01/01 8.20 FOX CREEK (T342) 0.86 4.50 03/01/01 5.36 STARLAND (M047) 1.29 0.00 1.29 FT. MACKAY SETTLEMENT #467 (B982) 1.56 0.00 1.56 STETTLER, COUNTY OF (C006) 1.15 0.00 1.15 FT. McMURRAY BAND (B352) 0.29 0.00 0.29 STETTLER, TOWN OF (T805) 0.85 6.10 14/07/01 6.95 GADSBY (V351) 2.56 5.00 08/01/01 7.56 STURGEON LAKE I.R. 154 (B770) 0.74 0.00 0.74 GALAHAD (V354) 5.02 3.00 10/01/01 8.02 SUCKER CREEK FIRST NATION 150A (B792) 0.78 0.00 0.78 GIFT LAKE METIS SETT (N173) 1.86 0.00 1.86 SWAN HILLS TOWN (T830) 1.66 6.00 13/01/01 7.66 (V366) 2.21 4.00 15/01/01 6.21 THORHILD & RADWAY (V687, C007) 2.94 0.00 2.94 GLENDON (V372) 2.06 1.50 03/01/01 3.56 THREE HILLS (T845) 1.17 6.00 09/01/01 7.17 (T393) 2.09 5.50 13/04/10 7.59 TROCHU (T857) 1.89 3.50 03/01/01 5.39 , CITY OF (K035) 1.17 7.75 11/03/01 8.92 TWO HILLS COUNTY (C021) 3.04 0.00 3.04 GRANDE PRAIRIE, COUNTY OF (C001) 0.48 0.00 0.48 TWO HILLS, TOWN OF (T863) 2.67 4.25 09/01/01 6.92 GRIMSHAW (T405) 0.98 6.00 10/07/01 6.98 UPPER HAY LAKE I.R. 212 (B728) 0.54 0.00 0.54 HALKIRK (V414) 1.77 1.00 03/01/01 2.77 VALLEYVIEW (T866) 1.08 5.25 06/01/01 6.33 HANNA (T417) 1.32 5.00 13/08/01 6.32 VEGREVILLE (T875) 1.55 7.00 15/01/01 8.55 HAY LAKE I.R. 209 (B727) 0.94 0.00 0.94 VERMILION (T878) 0.89 4.50 13/05/07 5.39 HEISLER (V429) 5.30 7.00 13/04/18 12.30 VERMILLION RIVER (AB & SK) (C024, SK24) 0.64 0.00 0.64 HIGH LEVEL (T435) 0.69 10.50 11/01/01 11.19 VETERAN (V881) 2.78 4.00 14/09/01 6.78 HIGH PRAIRIE (T438) 1.04 6.25 08/02/01 7.29 VILNA (V887) 3.02 20.00 12/01/01 23.02 (V447) 4.64 2.25 09/01/01 6.89 (V908) 1.89 0.00 08/02/01 1.89 HORSESHOE BAY S.V. (S458) 0.72 0.00 0.72 WEMBLEY (T911) 0.82 6.00 11/03/01 6.82 HYTHE (V468) 1.56 6.00 15/01/01 7.56 WHEATLAND (C016) 0.33 0.00 0.33 INNISFREE (V474) 2.81 1.50 06/01/01 4.31 WHITE SANDS S.V. (S922) 0.86 0.00 0.86 JASPER (PARK & OUTSIDE TOWN) (L012, R003) -0.15 6.00 13/08/01 5.85 WHITEFISH I.R. 155 (B924) 1.02 0.00 1.02 JASPER SCH DIST 3063 (R004) -0.65 6.00 13/08/01 5.35 WILLINGDON (V926) 3.35 2.00 08/01/01 5.35 (V508) 1.95 6.00 13/01/01 7.95 WOOD BUFFALO (M018) 0.16 0.00 0.16 KNEEHILL & TORRINGTON (M048, V854) 1.24 0.00 1.24 WOOD BUFFALO PARK (L024) 0.36 0.00 0.36 LAKELAND (C089) 0.41 0.00 0.41 YOUNGSTOWN (V932) 1.24 1.25 12/01/01 2.49 LAMONT (C030) 1.18 0.00 1.18

Disposition 21204-D01-2015 (December 24, 2015)