Franchise Agreement between the Village of Standard and Aquila by bzu20592

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									                               THE PROVINCE OF ALBERTA

                              MUNICIPAL GOVERNMENT ACT

                       ALBERTA ENERGY AND UTILITIES BOARD

                                                              IN THE MATTER of a Franchise
                                                              Agreement between the
                                                              Village of Standard and
                                                              Aquila Networks Canada (Alberta)
                                                              Ltd.

                                        ORDER U2002-895
                                                                          Application No. 1276762
                                                                                File No. 6650-S17


The Village of Standard (the Village) filed an application with the Alberta Energy and Utilities
Board (the EUB) for approval to renew its special franchise agreement with Aquila Networks
Canada (Alberta) Ltd. (Aquila) [formerly UtiliCorp Networks Canada (Alberta) Ltd.] until
December 31, 2011 in accordance with the terms of an Electric Distribution Agreement (the
Franchise Renewal Agreement) which is attached as Schedule “A” to this Order. It is noted that
the Franchise Renewal Agreement is based on a standard agreement which was previously
reviewed by the EUB in Decision 2001-52.

The EUB notes that the Franchise Renewal Agreement includes provisions for the payment of a
franchise fee, in addition to linear taxes. The franchise fee provisions allow for the franchise fee
to be based on a percentage of the gross revenue of Aquila within the Village, from the
distribution tariff rates, excluding any riders or charges that relate to pool price deferral account
amounts. The level of the franchise fee can be changed once annually at the sole discretion of the
Village and would be set initially at 0 per cent, with a maximum franchise fee of 20 per cent.

Notice of the application was published and no objections were received.

The EUB considers that the privilege or franchise contained in the Franchise Renewal
Agreement is necessary and proper for the public convenience and properly conserves the public
interests. The EUB notes that the Village and Aquila have given the EUB consent to proceed
with this application without a hearing.

Therefore, the Alberta Energy and Utilities Board, pursuant to the Municipal Government Act,
R.S.A. 2000, c. M-26, hereby orders as follows:

1.     Application No. 1276762 by the Village of Standard dated July 26, 2002 is approved,
       subject to the terms and conditions herein contained.

2.     The Village of Standard shall file with the Alberta Energy and Utilities Board a copy of
       the By-law No. 6-2002 after third reading; and a copy of the executed Franchise Renewal
       Agreement.


3.     Prior to implementing any change in franchise fee pursuant to the provisions of Clause
2                                                                              Order U2002-895

       5(b) of the Agreement, the Village shall notify customers located in the Village of its
       intent to change the level of the franchise fee and the resulting effect of any such change
       on an average residential customer’s annual electric billing. Customers will be notified
       through the publication of a notice once in the newspaper having the widest circulation in
       the Village, at least 45 days prior to the implementation of the revised level of the
       franchise fee. A copy of the notice shall be filed with the Alberta Energy and Utilities
       Board.


DATED at the City of Edmonton, in the Province of Alberta, on September 23, 2002.



                                              ALBERTA ENERGY AND UTILITIES BOARD
ALBERTA ENERGY AND UTILITIES BOARD                                  ORDER U2002-895

                              SCHEDULE “A”


                 This schedule is not available for the web site.
                    Please contact EUB Information Services
                            -- Phone: (403) 297-8190
                              -- Fax: (403) 297-7040
                  -- E-mail: eub.info_services@eub.gov.ab.ca

								
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