NOTICE FOR OBJECTIONS
VILLAGE OF DONNELLY
APPLICATION NO. 1401340
ATCO GAS AND PIPELINES LTD. (ATCO GAS)
APPLICATION NO. 1401348
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 July 4, 2005.
Nature of the Applications
An application has been filed with the EUB by the Village of Donnelly (the Village) for approval to renew its special franchise agreement with ATCO Gas. The proposed franchise agreement gives ATCO Gas an exclusive right to deliver natural gas to the residents of the Village for a period of 10 years.
The Agreement has been based on a standard natural gas franchise agreement commonly used in the province. Some of the noteworthy changes from the current agreement 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 current agreement requires ATCO Gas to pay the Village a franchise fee, which is based on 5.25 per cent of ATCO Gas' gross revenues within the Village in lieu of taxes otherwise payable.
ATCO Gas has applied to the EUB for approval to revise its delivery rates so that the revised franchise fee included in the Agreement can be recovered from retailers providing service to customers within the Village of Donnelly. ATCO Gas bills retailers for its delivery charges and these would include the revised franchise fee. Retailers bill customers for all charges of ATCO Gas in addition to their energy charges. The franchise fee is required to be billed as a separate charge on gas billings.
Between the years 2000 and 2004 the fee, on average, has accounted for about $53.25 of the yearly bill of an average residential customer in the Village.
The renewal agreement allows for the collection of a franchise fee of 30 per cent only on the non-gas components of customers' bills, which are known as the fixed charge and variable charge. The proposed fee would result in a fee of about $91.25 of the annual gas bills of average residential customers. The application of the franchise fee to only the delivery charges on customers' bills would mean that future changes in the price of natural gas would not impact the municipal franchise fee on customers' bills.
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 gas billings of an average residential customer in the Village would increase by about $15.25 from the amount paid with the initial fee.
To File a Submission, Intervention or Objection
To obtain additional information or a copy of the applications, contact:
The Village of Donnelly
BOX 200
Donnelly, Alberta T0H 1G0
Attention: Ms. Helene Hausler, Municipal Administrator
Telephone: (780) 925-3835, fax: (780) 925-2100
- or -
ATCO Gas and Pipelines Ltd.
8801-112 Street
Grande Prairie, Alberta T8V 6A4
Attention: Mr. Brendan Dolan, Manager, Grande Prairie Operations
Telephone: (780) 539-2430, fax: (780) 513- 3930
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.ercb.ca. click on the applications link, then click on IAR Query and enter application number 1401340 & 1401348.
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 Village at the address above, and a copy to eub.utl@gov.ab.ca. referencing application 1401340 & 1401348. 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
Edmonton, Alberta T5J 2Y2
Telephone (780) 422-3139, Fax: (780) 427-6970, Email: Michele.DelColle@gov.ab.ca
Issued at Calgary, Alberta on June 8, 2005.
ALBERTA ENERGY AND UTILITIES BOARD
Douglas A. Larder, General Counsel
