Take Notice that the Alberta Energy and Utilities Board (the EUB) may continue to process these applications without further notice if no bona fide objections are received on or before May 13, 2002.
Nature of the Applications
An application has been filed with the EUB by the Town of Rimbey (the Town) for approval to renew its electric distribution franchise agreement (the Agreement) with UtiliCorp Networks Canada (Alberta) Ltd. (UNCA). The Agreement gives UNCA the exclusive right to deliver electric power to the residents of the Town until December 31, 2011.
The terms of the Agreement have changed substantially from previously approved franchise agreements. Some of the noteworthy changes include payment by UNCA of a franchise fee in addition to linear taxes, a change in responsibility for utility relocation costs caused by municipal purposes, provision of extra services, changes respecting street lighting investment matters, options for purchase of the distribution system by the municipality, and provisions respecting third party use of the distribution system.
The Agreement has been based on a standard electric franchise agreement negotiated by the Alberta Urban Municipalities Association for use by all municipalities in the province. The standard electric franchise agreement has been reviewed by the EUB.
The level of franchise fee is a matter that is specifically negotiated between a municipality and the utility at the time a distribution agreement is entered into, renewed or amended. This Agreement requires UNCA, for the first time, to pay the Town a franchise fee for use of municipal rights of way. Previously UNCA was only required to pay the Town a linear tax payment assessed against UNCAs property located within the Town. All linear taxes are currently recovered through UNCAs general rates. Franchise fees are recovered as a separate utility charge on customer billings within the Town of Rimbey.
The proposed franchise fee would initially be set at 3.5 per cent of UNCAs gross revenues. This would add about $1.07 to the monthly billing of an average residential customer in the Town. An average residential customer uses about 625 kWh per month.
The Agreement further allows the Town 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 Town to impose a franchise fee above 20 per cent. Therefore, if the Town implemented the maximum franchise fee at current rates for distribution, the fee would add about $6.12 to the monthly billing of an average residential customer in the Town.
UNCA has applied to the EUB for approval to revise its rates so that the franchise fee included in the Agreement can be recovered from retailers providing service to customers within the Town of Rimbey. UNCA bills retailers for its delivery charges and these would include the franchise fee, if approved. Retailers bill customers for all charges of UNCA in addition to their energy charges. The franchise fee is required to be billed as a separate rider on electric billings.
Additional Information
To obtain additional information or a copy of the applications, contact:
The Town of Rimbey
Box 350
Rimbey, Alberta T0C 2J0
Attention: William Kostiw, Chief Administrative Officer
Telephone: (403) 843-2113, Fax: (403) 843-6599
- or -
UtiliCorp Networks Canada (Alberta) Ltd.
700, 801 - 7 Avenue SW
Calgary, Alberta T2P 3P7
Attention: Ms. Deb Crossman
Telephone: (403) 514-4130 Fax: (403) 514-5130
For information about EUB procedures, contact:
Utilities Branch, EUB
Attention: Joyce Didier
Telephone: (780) 427-8558
Copies of the applications are available for viewing at the EUB's Edmonton office.
To File a Submission
If you have a bona fide 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 Town at the address above. Send the original to the EUB to the attention of:
Maria Pohl, Utilities BranchAlberta Energy and Utilities Board
10th Floor
10055 - 106 Street
Edmonton, Alberta T5J 2Y2
Telephone (780) 422-5211, Fax: (780) 427-6970
Issued at Calgary, Alberta on April 15, 2002.
ALBERTA ENERGY AND UTILITIES BOARD
Michael J. Bruni, Q.C., General Counsel
