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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 invisalign® The invisible way to straighten teeth. - 0% financing for easy monthly payment plans - Treatment cases starting as low as $1,995 - Customized treatment costs - FREE consultation -4Ac°Dental Fa,r),7 MEI Offered in two locations. Call today to book your FREE consultation! Hanover - 399 18th Avenue 1226.277.0745 Lucknow - 693 Havelock St., North 1226.277.0740 DawsonDental.ca 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 The Lucknow Sentinel Birthday Club Jesse Thomas Broome March 9, 2006 10 years old Kaleb Kendon Meyer March 11, 2005 11 years old Ryan George MacKey March 15, 2010 6 years old Your child can be a member of the Sentinel's birthday club call 519-528-2822 to register Lucknow So l 619 Campbell Street 519-528-2822 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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