Draft Bylaws
Community Standards Bylaw #408 – First Reading Passed
We are pleased to announce that Bylaw #408, also known as the Community Standards Bylaw, has passed its first reading. This bylaw aims to enhance the quality of life in our community by establishing clear standards and guidelines for various aspects of community living.
Review and Feedback
The proposed bylaw is now available for public review. We encourage all residents to take a moment to read through the document and provide us with your feedback. Your input is valuable to us, and we want to ensure that the bylaw reflects the needs and concerns of our community.
Fortis Franchise Agreement breakdown of Questions from Residents
Here is some further clarification and background information on the proposed franchise agreement between the Village of Spring Lake and FortisAlberta.
Prior to 2001, electric utility companies in Alberta were integrated, meaning that each utility owned and operated generation plants, transmission and distribution lines, and the retailing (billing) function. In 2001 the provincial government deregulated the electric industry. Integrated utilities were broken down into their component parts, namely generation, transmission, distribution and retail.
FortisAlberta is one of 4 main distribution providers in the province, the others are ATCO Electric, EPCOR (in the City of Edmonton) and ENMAX (in the City of Calgary). Before and after deregulation, FortisAlberta has always served customers in Spring Lake.
The role of the distribution provider is to deliver electricity from the high voltage system to homes and businesses. The role of a retailer is to arrange for the physical supply of electricity and provide the monthly bill for services. The franchise agreement does not restrict retail choice – in other words customers in FortisAlberta’s service territory are free to choose the retailer of their choice.
The distribution rates charged by FortisAlberta, are regulated and approved by the Alberta Utilities Commission (regulator). This entails FortisAlberta submitting proposed rates to the Commission. The Commission along with other experts review the costs and expenses that make up the rates and may approve, change or deny these amounts. Through this process customers receive rates that are just and reasonable for the service provided.
The franchise agreement between Spring Lake and FortisAlberta – brings added value to the Village – through clauses that address street lighting, streamlining of construction and maintenance, and indemnification and liability. In granting the franchise agreement, FortisAlberta receives the exclusive right to provide distribution service, construct and operate the system in Spring Lake and use roads and rights-of-way to provide service.
With approval of the franchise agreement, nothing will change with respect to FortisAlberta providing distribution services to you and your ability to select the retailer of your choice. The franchise agreement enhances the arrangement between FortisAlberta and Spring Lake to provide electric utility service to its businesses and residents.
The franchise agreement itself was negotiated between FortisAlberta, ATCO Electric, and Alberta Municipalities (representing all municipalities in Alberta). The franchise agreement was vetted and approved in 2012 for use in the province by the Commission – resulting in a “standard agreement” that is used by all municipalities in Alberta.
With a franchise agreement, there is the ability to charge a franchise fee. The Commission has capped franchise fees at 20% of distribution charges. Franchise fees are not calculated on rate riders or the energy portion of the bill.
The level of the franchise fee is determined and approved by Spring Lake Council (elected officials). FortisAlberta collects this amount on behalf of the municipality and remits the funds to the municipality. Council, acting in the best interests of its citizens would then determine how best to use those funds. In this case, Spring Lake has determined that no franchise fees will be collected at this time.
AUC regulations allow municipalities to adjust the franchise fee once per year. Notwithstanding, many of our communities with franchise agreements have 0% franchise fees.
For further information, please contact:
Ms. Nicole Smith, Stakeholder Relations Manager,
FortisAlberta
360 Carleton Drive, St. Albert, AB, T8N 7L3
phone: (780) 544-3307
email: Nicole.smith@fortisalberta.com