HomeMy WebLinkAboutFIN-06-058 - Adoption of Service Agreement, Fee Schedule & Delegation of Authority - Kitchener's Natural Gas Operation
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Financial Services
Report To:
Date of Meeting:
Submitted By:
Mayor, and Members of Council
December 18, 2006
Prepared By:
Ward(s) Involved:
Date of Report:
Report No.:
Subject:
Pauline Houston, General Manager of Financial Services
& City Treasurer
Loraine Baillargeon, 2532
All
December 4, 2006
FIN-06-058
ADOPTION OF SERVICE AGREEMENT, FEE SCHEDULE
AND DELEGATION OF AUTHORITY TO EXECUTE
SERVICE AGREEMENT AND BUNDLED
TRANSPORTATION AGREEMEETS PERTAINING TO
KITCHENER'S NATURAL GAS OPERATION
RECOMMENDATION:
That, the "Service Agreement" introduced by the Ontario Energy Board in conjunction
with the Gas Distribution Access Rule ("GDAR") for use by distributors and gas vendors
be adopted and that effective June 1, 2007, the "Service Agreement" replace the
Collection Services Agreement that Council approved for use between the City and its
customers or their agents in a resolution dated May 3, 1999; and further
That the authority to execute the standard Service Agreement and Bundled
Transportation Agreements on behalf of the City of Kitchener be delegated to the
Manager, Asset Optimization, Utilities Division, or in his/her absence due to vacation
illness, or attendance at educational seminars or conferences, the Manager, Regulatory
Affairs and in his/her absence due to vacation, illness, or attendance at educational
seminars or conferences, the Director of Utilities or their designate; and further
That the schedule of Direct Purchase Fees attached be approved for use by the City
effective June 1, 2007; and further,
That minor changes may be made to the standard agreements referred to above to
accommodate specific contractual needs of the City, its customers or their agents, at the
discretion of the Director of Utilities and subject to the approval of the City Solicitor.
BACKGROUND:
In 1999, Council approved the use of a revised standard form Bundled Transportation
Agreement in connection with direct purchase and delivery of natural gas, and a standard form
Collection Services Agreement between the City and its customers or their agents to facilitate
competition within the City of Kitchener, through the billing and collection of gas purchases from
direct purchase customers on behalf of their agents.
Since that time, the City ("Kitchener Utilities") has been involved in an initiative by the Ontario
Energy Board to further facilitate competition in the Province of Ontario relating to the direct
purchase of gas by consumers. This initiative, the Gas Distribution Access Rule ("GDAR") is
currently expected to be implemented by the Natural Gas Industry in Ontario effective June 1,
2007.
The GDAR stipulates a Service Agreement is to be executed by all parties by January 1 , 2007.
REPORT:
Gas Distributors in Ontario are required to use the Service Agreement provided by the Ontario
Energy Board as part of the Gas Distribution Access Rule dated December 11, 2002 and
amended most recently on September 29, 2006. As part of the OEB ruling, a standard form of
Service Agreement is to be used by all market participants. Aspects of the Service Agreement
replace the Collection Services Agreement that gas distributors in Ontario have been using. The
City Solicitor has reviewed the Service Agreement.
FINANCIAL IMPLICATIONS:
There are no financial implications.
Dwayne Quinn, P.Eng., MBA
Director of Utilities
Pauline Houston, CA
General Manager of Financial Services
& City Treasurer
Collection Services Fee:
Customer Class
Residential
Commercial
Industrial
Direct Purchase Fees Schedule
Fee per billing account per month
$ 1.05
$ 2.00
$ 5.00