TAMRMS#: B06
11.1
REQUEST FOR DECISION
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Bylaw 22/2024 Natural Gas Franchise Distribution Agreement (2nd and 3rd Readings)
Presented by: Monica Chan, Senior Business Analyst, Financial and Strategic Services
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RECOMMENDED MOTION(S)
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1. That Bylaw 22/2024 be read a second time.
2. That Bylaw 22/2024 be read a third time.
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SUMMARY
On November 13, 2024, the Alberta Utilities Commission (AUC) provided approval for the renewal of the City's natural gas franchise agreement with ATCO. The agreement consists of a 25 per cent franchise fee with a term of 10 years, commencing January 1, 2025, and expiring December 31, 2034.
The new natural gas franchise agreement ensures that the City is aligned with provincial legislation.
Once Bylaw 22/2024 is passed, Administration will proceed to signing the natural gas franchise agreement, which is anticipated to occur immediately after Council's approval.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
On October 1, 2024, Council passed the following motion:
BL-24-030
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.
That section 5 of Schedule A of Bylaw 22/2024 be amended to increase the franchise fee from 20.3% to 25%.
That notice be provided to ATCO Gas and Pipelines Ltd. no later than October 1, 2024, of the City's intent to increase the franchise fee effective January 1, 2025.
That administration executes and completes all required documentation and advertising requirements to enable consideration of approval of the franchise fee increase by the Alberta Utilities Commission.
BACKGROUND AND DISCUSSION
The proposed franchise agreement grants ATCO an exclusive right to distribute natural gas within the community. This agreement allows ATCO to construct, operate, and maintain the natural gas d...
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