HomeMy WebLinkAboutThe Lucknow Sentinel, 2016-03-09, Page 22 Lucknow Sentinel • Wednesday, March 9, 2016
Municipalities approve Natural Gas Franchise Agreement with EPCOR
The Municipalities of Kincardine
and Arran-Elderslie and the Town-
ship of Huron -Kinloss have
approved and signed a Municipal
Franchise Agreement which pro-
vides EPCOR Utilities Inc. with the
right to distribute natural gas within
the three municipalities.
In September 2015 the municipal-
ities selected EPCOR as the preferred
proponent to bring natural gas to
their three Southern Bruce
communities.
The selection of EPCOR followed a
six-month competitive Request for
Information process, which identi-
fied multiple potential developers to
construct, own and operate a new
natural gas distribution utility.
Kincardine Mayor Eadie said,
"council's approval of the Franchise
Agreement is the next important step
in allowing EPCOR to start imple-
menting its plan to create a new gas
utility for our area. We are very
pleased that EPCOR continues to
make progress and move forward on
this critical community initiative."
The Ontario Energy Board (OEB)
must approve the Franchise Agree-
ment and EPCOR's plans to con-
struct and operate a new gas utility.
Last month the OEB announced
that it will hold a public hearing in
April to consider the common
issues across Ontario regarding
natural gas expansions.
Arran-Elderslie Mayor Paul Eagle-
son said, "we take the recently
announced hearing as a positive sign
that the Energy Board recognizes that
new entrants like EPCOR want to par-
ticipate and invest in our communi-
ties to provide new gas service. Fair-
ness demands that whatever new
rules the Energy Board establishes for
gas expansion must apply in the same
way to everyone regardless of whether
they are existing utilities or a new
major player like EPCOR."
Once the OEB makes its decision
on the new gas expansion rules,
which is expected by the fall of this
year, EPCOR intends to make a Leave
to Construct application to the Energy
Board for approval to build the new
gas distribution network.
Huron -Kinloss Mayor Twolan
said, "our three municipalities began
exploring the topic of gas expansion
a fewyears ago with one simple goal
in mind: to bring natural gas to as
many of our residents, farms and
businesses as possible. We did not
expect to change the entire provin-
cial regulatory landscape in the pro-
cess, but this is exactly what appears
to be happening. If our efforts can
help other municipalities in achiev-
ing gas service as well, then we are
very pleased to have done so."
Mayor Eadie said, "to
Union Gas presents nat. gas proposal
CONTINUED FROM > PAGE 1
He said Union Gas has no
intention to respond to the
municipalities' letter other than
by holding the information
sessions.
"What we are doing is holding
our three open houses and in
that trying to educate the pub-
lic," he said.
Union Gas, he added, has
already submitted its proposal
to the Ontario Energy Board
(OEB), which will be subjected
to a Generic Hearing next
month.
The OEB decides who has the
right to distribute natural gas in
the province and at what eco-
nomic margins.
"And we do have our Generic
Hearing coming up on that and
we'll see what the outcome of
that hearing is and where we go
for next steps," Costello said.
The plan submitted by Union
Gas calls for about 300 kms of
pipe to bring gas to the eight
communities of Kincardine,
Tiverton, Inverhuron, Chesley,
Paisley, Ripley Lucknow and
Point Clark.
Costello explained it would be
expanding Union Gas' current
Owen Sound infrastructure
with an extension coming
from its pipes in Wingham to
service Ripley and Lucknow and
an extension coming from Dor-
noch to service the other
communities.
"It really is a natural extension
of our existing natural gas infra-
structure," he said.
The proposal before the OEB
requests a customer surcharge
of about $500 for up to 10 years,
a property tax exemption on the
new pipelines for up to 10 years
and a maximum $2 per month
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surcharge to all Union Gas'
existing customers.
"This is a brand new idea and
we need different concepts and
regulatory flexibility for us to be
able to service communities
such as Kincardine because the
economic shortfall is just so sig-
nificant," Costello said. "So
we're trying to do is take a look
at existing customers, munici-
pality and new customers all
trying to make this work."
Following approval from the
OEB, Union Gas will then file an
application to construct.
When asked how Union Gas'
plan varies from that of
EPCOR's, Costello said he was
unable to make comment as he
hasn't seen their plan since they
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access natural gas in our area will be
a significant economic boost for the
entire region. EPCOR continues to
be an excellent, supportive partner
in helping us achieve this outcome."
EPCOR considers the Municipal
Franchise Agreement as an impor-
tant milestone.
"We are pleased that the agree-
ments have been approved by each
of the municipalities," said Stephen
Stanley, EPCOR Senior Vice -Presi-
dent, Commercial Services. "It will
ultimately bring natural gas to these
communities. We can now proceed
to the next phase, which is preparing
and submitting our applications to
the Ontario Energy Board."
Union Gas is proposing a 300km-long
pipeline to bring natural gas to eight
South Bruce communities.
haven't submitted a proposal to
the OEB.
"I can't speak to EPCOR's plan
because they have not filed a
plan on it as a company," he
said.
Over the phone Kincardine
Mayor Anne Eadie said EPCOR
is currently working on its pro-
posal to put before the energy
board.
"We just have to sit back and
see what the Ontario Energy
Board decides," she said.
The OEB hearings will take
place from April 19 to 22.
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