After a process that began Jan. 23, and passed through a series of approvals by both ATCO Gas and the Alberta Energy and Utilities Board, a new Natural Gas Distribution System Franchise Agreement has been given the go-ahead by council to be signed.
A bylaw authorizing the mayor and the chief administrative officer to sign the new agreement, which will take effect July 1, was given first, second and third readings at the June 12 council meeting.
The agreement, which began in 1956 and has traditionally been renewed every 10 years since 1976, gives ATCO the exclusive right to distribute natural gas within Olds.
In exchange for exclusivity, ATCO pays a franchise fee to the town, at a rate of 30 per cent of total revenue earned on a delivery tariff charged to customers. These funds are earmarked for arts, culture and heritage projects within the community.
The town's operating budget estimates the franchise fees to be $710,500 for 2017.
