NOTICE FOR OBJECTIONS
VILLAGE OF DELIA
APPLICATION NO. 1544705
ALTAGAS UTILITIES INC.
APPLICATION NO. 1544760
Take Notice that the Alberta Energy and Utilities Board (the EUB) may continue to process these applications without further notice if no valid objections are received on or before November 29, 2007.
Nature of the Applications
An application has been filed with the EUB by the Village of Delia (the 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 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 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 2003 and 2007 the franchise fee, on average, has accounted for about $50.25 of the yearly bill of an average residential sales customer, and in 2008 the franchise fee will account for about $77.25 of the yearly bill.
The franchise fee provided in the proposed agreement would initially be set at 10 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 increase
the yearly billing of the Property & Franchise Fee for an average residential customer in the Village by about $29.00 from the amount paid in 2007. An average residential customer uses about 120 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 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 Village to impose a franchise fee above 35 per cent. Therefore, if the Village implemented the maximum franchise fee at current rates for distribution, yearly billings of an average residential customer in the Village would increase by about $103.50 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 Town.
Additional Information
Copies of Application No.’s 1544705 & 1544760 are available for viewing through the IAR Query link on the Applications page of the EUB Web site www.ercb.ca or by clicking on the following link:
https://www3.eub.gov.ab.ca/eub/dds/iar_query/ApplicationAttachments.aspx?AppNumber=1544705
https://www3.eub.gov.ab.ca/eub/dds/iar_query/ApplicationAttachments.aspx?AppNumber=1544760
To obtain additional information or a paper copy of the Application, contact the applicant at:
The Village of Delia
P.O. Box 206
Delia, Alberta T0J 0W0
Attention: Wendy Jacobsen, Chief Administrative Officer
Telephone: (403) 364-3787, Fax: (403) 364-2089
- or -
AltaGas Utilities Inc.
5509 – 45 Street
Leduc, Alberta T9E 6T6
Attention: Mr. Stan Smith, Manager, Business Development
Telephone: (780) 980-7321, fax: (780) 986-5220
For information about EUB procedures contact Silvia Danchuk, Utilities Branch, at the number listed below.
To File a Submission
Any party with concerns respecting Application No. 1544705 or 1544760 should submit a Statement of Intent to Participate (SIP) letter setting out your name or organization name, address or legal land description, telephone number and e-mail address (if available).
Please note that the SIP submission must contain:
• a description of the nature of the party’s interest in the proceeding (i.e. how the party will be affected by the Board’s decision); and
• a statement describing the party’s eligibility for cost recovery in light of the “business interest” rule contained in Section 55(2)(h.1) of the EUB Rules of Practice.
One copy of your SIP letter should be directed to the applicant using the contact information above and one copy submitted to the EUB.
Pursuant to Section 12 of the EUB Rules of Practice, all documents filed in respect of this proceeding, including any submissions or other documents filed prior to the commencement of the proceeding, must be placed on the public record unless otherwise ordered by the Board, subject to the Freedom of Information and Protection of Privacy Act. Your SIP letter and any other documents you file will be accessible to the public and all other participants in the proceeding through the EUB’s Web site. Please ensure that the document you file is free of information that you do not want to appear on a public record.
Electronic copies of the SIP letters can be directed to:
E-mail: EUB.Utl@eub.ca
Subject: 1544705 & 1544760
Paper copies can be sent to:
Silvia Danchuk, Utilities Branch
Alberta Energy and Utilities Board
10055 – 106 Street, 10 Floor
Edmonton, Alberta T5J 2Y2
Telephone: (780) 427-9370; Fax: (780) 427-6970; E-mail: silvia.danchuk@gov.ab.ca
The EUB may grant the application without further process if no bonafide objections are filed by persons or organizations considered by the EUB to be directly or adversely affected by the proposal.
Issued at Calgary, Alberta, on November 8, 2007.
ALBERTA ENERGY AND UTILITIES BOARD
Doug A. Larder, Q.C., General Counsel
