TAMRMS#: B06
9.4
REQUEST FOR DECISION
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Bylaw 22/2024 Natural Gas Franchise Distribution Agreement (1st Reading)
Presented by: Monica Chan, Senior Business Analyst, Financial and Strategic Services
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RECOMMENDED MOTION(S)
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That Bylaw 22/2024, being a bylaw to authorize the Chief Administrative Officer to execute an agreement with ATCO Gas and Pipelines Ltd. to deliver natural gas to customers within the City of St. Albert, be read a first time.
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SUMMARY
Administration is seeking Council approval to renew a 10-year Natural Gas Franchise Distribution Agreement with ATCO Gas and Pipelines Ltd. at the current fee of 20.3 per cent and to provide first reading to a bylaw that enables Administration to adhere to the procedures of executing the contract and attaining approval from the Alberta Utilities Commission.
The City is required to complete the ATCO submission requirements, including advertising requirements to the AUC, by mid-November 2024.
It is anticipated that Bylaw 22/2024 will return to Council for second and final third reading on or around December 3, 2024, after which point the contract will be able to be fully executed.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
The new agreement with ATCO aligns with the MGA sections 45-47.
BACKGROUND AND DISCUSSION
The current agreement is detailed in Bylaw 45/2010, which allows the City of St. Albert to enter into an agreement with ATCO Gas and Pipelines Ltd. for the exclusive right to distribute natural gas within the community. The current agreement commenced in May 2011 for a period of 10 years at a franchise fee rate of 18.8 per cent and is automatically extended until the contract is terminated or renewed by either party.
In 2018, the City elected to increase the fee by 1.5 per cent to 20.3 per cent from 18.8 per cent through motion AR-18-414. As expected, the City's application for the rate increase through ATCO was approved by the Alberta Utilit...
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