HomeMy WebLinkAboutFIN-07-072 - Gas Distribution Access Rule (GDAR) Service Agreement - FeesReport To:
Finance & Corporate Services Committee
Date of Meeting:
May 28, 2007
Submitted By:
Pauline Houston, General Manager of Financial Services
& City Treasurer
Prepared By:
Loraine Baillargeon, 2532
Ward(s) Involved:
All
Date of Report:
May 21, 2007
Report No.:
FIN-07-072
Subject:
GDAR SERVICE AGREEMENT - FEES
RECOMMENDATION:
That the Direct Purchase, ABC and GDAR related Fees as proposed in the attached
Appendix to FIN-07-072 be approved in conjunction with the previously approved GDAR
Service Agreement for Gas Vendors of the City of Kitchener effective June 1, 2007;
The Gas Distribution Access Rule ("GDAR") is an initiative of the Ontario Energy Board
( "OEB ") and its rulemakimr, authority. The intent of the rule is to ensure that natural gas
distributors provide appropriate and non-discriminatory access to vendors to facilitate
competition in the area of natural gas. The OEB approved the Gas Distribution Access Rule
("GDAR") Service Agreement in November 2005. Since that time, staff have been involved in
the design and development of our system to accommodate the terms and functionality of
GDAR. Effective June I" when GDAR and the Service Agreement come into effect, the OEB
will assume responsibility over the Vendors in these matters. However, Council is still the rate-
making authority for Kitchener Utilities.
�0140 0 :
The proposed fees in the appendix are consistent with industry practice for the respective items.
The first two types of fees have previously been approved by Council. Since the Collection
Services Agreement has been replaced by the Service Agreement (approved by Council in
December 2006), the previously- approved fees will be moved to Appendix F to the Service
Agreement. The remaining fees are new as a result of the GDAR requirements.
FINANCIAL IMPLICATIONS:
Currently, annual revenues of approximately $85,000 are received from the first two fee types.
There is no estimate for revenue for the remaining fees as the amount of revenue will be
dependent on the volume of gas vendor activity and transactions and the volume of activity is
difficult to predict.
Dwayne Quinn, P.Eng., MBA
Director of Utilities
Pauline Houston, CA
General Manager of Financial Services
& City Treasurer
List of Fee Types and Fee Rates
Direct Purchase Administration Fee (monthly) $75.00
Direct Purchase Administration Fee per account (monthly) .19
ABC fee — Residential 1.05
ABC fee — Commercial 2.00
ABC fee — Industrial 5.00
Account lookup fee — regular 2.00
Account lookup fee — manual 5.00
STR processing fee .50
STR acceptance fee 1.00
IVA fee the greater of: $1.85 and .065%