Title
Bylaw 2022-01 - Franchise Renewal Agreement Regarding Natural Gas Distribution in the Hamlet of Entwistle
Proposed Motion
1. That Bylaw 2022-01 receive second reading.
2. That Bylaw 2022-01 receive third and final reading.
Body
Administrative Recommendations
Administration supports the proposed motion, as presented.
Purpose
Bylaw 2022-01 authorizes the renewal of an agreement with ATCO Gas and Pipelines Ltd. to deliver natural gas to customers within the Hamlet of Entwistle.
ATCO Gas and Pipelines Ltd. have provided a standard franchise renewal agreement for the Hamlet of Entwistle, based on the template negotiated by the AUMA and ATCO Gas. The agreement reflects a franchise fee rate of 17.32% (consistent with the prior year) and has a term of ten (10) years. ATCO advised that the franchise fee is calculated on their actual total revenue derived from the Delivery Tariff, including without limitation the fixed charge, base energy charge, demand charge but excluding the cost of Natural Gas (being the calculated revenues from the Natural Gas cost recovery rate rider or the deemed cost of Natural Gas and Natural Gas supply related riders) in that year for Natural Gas Distribution Service within the Municipal Service Area.
After Bylaw 2022-01 receives first reading, the agreement and application for agreement will be forwarded to ATCO to submit the application to the Alberta Utilities Commission (AUC).
The Entwistle natural gas franchise fee will provide Parkland County approximately $30,577 of revenue annually. The approximate natural gas franchise fee payable by an average Entwistle resident customer using 115 GJ's per year is $9.50 per month or $114 per year.
Strategic Plan/Policy/Legal/Staff Implications:
Responsible Leadership: Maintain the public's trust through transparent and fair decision-making, superior service delivery, and effective communication.
Financial Impact:
Revenue of approximately $30,577 as estimated in the current budget.