VIEWS OF THE BOARD. The Board considers that the scope of the MSA Xxxxxx has remained unchanged from that provided by letters dated April 25, 2003 and May 5, 2003, as summarized in the opening remarks to the hearing by the Chair and as further confirmed during the course of the hearing.18 The 13 Decision 2002-069, page 48 14 Decision 2003-040, page 78 15 Transcript, page 34 16 Transcript, page 507 17 Transcript, page 52 18 Transcript, page 4 Board agrees with ATCO that the MSA Xxxxxx and this Decision should not re-visit the full suite of affiliate issues addressed during the ATCO Affiliate proceeding, including the Board’s acceptance of the out-sourcing arrangement with ATCO I-Tek. The Board notes the disagreement of the parties as to on the importance of the MSA being a renewal of the Original MSA. ATCO viewed the Renewal MSA as a renewal wherein ‘the changes made were in the nature of clarifications and a streamlining of a successful and cooperative relationship between ATCO I-Tek and its customers’.19 On that basis ATCO argued that it was not necessary, nor within the scope of the MSA Module, to re-visit the full suite of affiliate issues addressed during the ATCO Affiliate proceeding with respect to the provision of IT services by ATCO I-Tek to the ATCO Utilities. Interveners disagreed with ATCO’s views regarding the ‘renewal’ nature of the Renewal MSA and argued that a more comprehensive review was justified. The Board notes Calgary’s suggestion that the Renewal MSA should be subject to the same scrutiny as the Original MSA. The Board has considered these issues and, as previously noted, believes that a review of the terms and conditions of the Renewal MSA is appropriate and within the scope of the MSA Module. The Board has analyzed and compared aspects of the Renewal MSA with the Original MSA in this Decision. The Board believes that ultimately it must be satisfied that the Renewal MSA is a contract that a prudent utility would enter into, having regard to appropriate IT service and maintenance, and the protection of its core business. The Board has considered IPCCAA’s suggestion that additional scrutiny is required where market value is not easily defined. Further, the Board notes suggestions by interveners that the ATCO Utilities should be held to a higher standard due to the affiliate nature of the relationship between the ATCO Utilities and ATCO I-Tek. The Board agrees that the Renewal MSA must ultimately meet the requirements of the Code of Conduct decision (Dec...
VIEWS OF THE BOARD. The Board has resolved to approve the GP Fund’s subscription of limited partnership shares of WBA GP Fund and the authorization of GP Capital as fund manager for subsequent fundraising, including entering into New Partnership Agreement on 2 March 2023. Among the Directors who attended the board meeting, connected Directors Xx. Xx Xxxxxxx, Xx. Xxxx Xxx, Xx. Xxxxx Xxxx, Xx. Xxx Xxxxx, Xx. Xxxxx Xxxxxx and Xx. Xx Xxxxxxxx were deemed to have material interests in the transaction by virtue of being employed by GPHL and had thus abstained from voting on the relevant resolution. The Directors, including the independent non-executive Directors, consider that the transaction is on normal commercial terms in the ordinary course of business of the Company and the terms of the New Partnership Agreement are fair and reasonable, and in the interests of the Company and its shareholders as a whole. INFORMATION OF THE NEW PARTNERS Emerging Fund Emerging Fund is a limited liability company established in the PRC on 6 March 2017, and its ultimate beneficial owner is the State-owned Assets and Administration Commission of Guangzhou Municipal Government (“Guangzhou SASAC”). Emerging Fund is mainly engaged in equity investment, entrusted management of equity investment fund, equity investment management, investment consulting service, and investment management service. As at the date of this announcement, to the best of the Directors’ knowledge, information and belief having made all reasonable enquiries, the Emerging Fund and its ultimate beneficial owner are third parties independent of the Company and its connected persons. Industrial Fund Corporation Industrial Fund Corporation is a limited liability company established in the PRC on 9 December 2015, and its ultimate beneficial owner is Guangzhou SASAC. Industrial Fund Corporation is mainly engaged in entrusted management of equity investment fund, equity investment management, equity investment, investment consulting service, and investment management service. As at the date of this announcement, to the best of the Directors’ knowledge, information and belief having made all reasonable enquiries, the Industrial Fund Corporation and its ultimate beneficial owner are third parties independent of the Company and its connected persons. IMPLICATIONS UNDER THE HONG KONG LISTING RULES As previously disclosed in the Announcement, the controlling shareholder of the Company, holds 80% interests of GP Capital. As such, GP Capital is...
VIEWS OF THE BOARD. The Board does not consider the proposed revisions to the RC Agreement to be material and notes that no party objected to them. The Board also notes that EAL has submitted that there will be no effect on revenue requirement, there has been a stakeholder consultation process, and that FERC approval has been obtained by the WSCC effective June 1, 2001. The Board notes that EAL requested approval effective as of June 1, 2001 even though the Application was not made until October 26, 2001. In the circumstances, the Board considers it just and reasonable to approve the requested revisions. Therefore, the Third Amendment to the RC Agreement is approved as filed and as attached to this Decision as Appendix A, effective June 1, 2001. RELIABILITY CRITERIA AGREEMENT THIRD AMENDMENT ESBI Alberta Ltd. Dated in Calgary, Alberta on January 15, 2002. ALBERTA ENERGY AND UTILITIES BOARD <Original signed by> X.X. Xxxx, X. Xxx. Presiding Member <Original signed by> X. X. Xxxxx, P. Eng. Member <Original signed by> R.G. Lock, P. Eng. Member RELIABILITY CRITERIA AGREEMENT THIRD AMENDMENT ESBI Alberta Ltd. APPENDIX A –THIRD AMENDMENT TO WSCC THIRD AMENDMENT TO WESTERN SYSTEMS COORDINATING COUNCIL RELIABILITY CRITERIA AGREEMENT – CANADIAN LANGUAGE VERSION This THIRD AMENDMENT TO WESTERN SYSTEMS COORDINATING COUNCIL RELIABILITY CRITERIA AGREEMENT – CANADIAN LANGUAGE VERSION (“Amendment”) is entered into as of May 18, 2001 among the Western Systems Coordinating Council, Inc. ("WSCC") and Canadian member Transmission Operators (“Canadian Participating Transmission Operators") (collectively, the “Parties”).
VIEWS OF THE BOARD. The Board has resolved to approve the entering into of Supplemental Partnership Agreement on 19 December 2023. Among the Directors who attended the board meeting, connected Directors Xx. Xx Xxxxxxx, Xx. Xxxx Xxx, Xx. Xxxxx Xxxx, Xx. Xxx Xxxxx, Xx. Xxxxx Xxxxxx and Xx. Xx Xxxxxxxx were deemed to have material interests in the transaction by virtue of being employed by GPHL and had thus abstained from voting on the relevant resolution. Having considered that the Supplemental Partnership Agreement extending the duration of the Partnership by six years and waiving the management fees during the corresponding extended period, which will not change existing interests of the Company under the Fund Partnership Agreement or have any impact on the financial position, operating results or cash flow of the Company for the year, the Directors (including the independent non-executive Directors) is of the view that the terms of the Supplemental Partnership Agreement are fair and reasonable; the transactions under the Partnership Agreements are on normal commercial terms and in the interests of the Company and the shareholders as a whole.
VIEWS OF THE BOARD. The Board is concerned that this clause could impede the municipality’s ability to negotiate a future franchise agreement that varies from the Standard Agreement. The Board considers the purpose of section 47 is to provide uniformity in provision of service even when franchise agreements have expired and new agreements have not yet been negotiated and implemented. This in turn allows municipalities and utilities the ability to properly negotiate future franchise agreements without compromising the rights and responsibilities provided in a franchise agreement. While the Board recognizes AE’s concern that franchise negotiations be completed in a timely fashion so that the utility can make reasonable long-term decisions respecting the facilities in the municipality, the Board is concerned that such a clause could compromise the ability of a future municipal council to negotiate a new agreement that may vary from the Standard Agreement. Although the Board expects that AUMA fully understands the implications of this clause, it is possible that some individual municipalities could enter into a franchise agreement based on the Standard Agreement without understanding the implications of this clause on the municipality. The Board may therefore require confirmation from a municipality seeking approval of a franchise agreement that it understands that this clause could result in reduced revenues for the municipality after the agreement expires and that the municipality is satisfied that this provision will not compromise its ability to negotiate future franchise agreements. The Board would also expect that the utilities should be providing municipalities with adequate notice of the level of franchise fee that would be applicable if the agreement is not renewed within one year of expiration.
VIEWS OF THE BOARD. The Board considers that the authority of a municipality to charge a franchise fee is implied by the power of municipalities to enter into agreements with utilities pursuant to section 45 of the MG Act. As the Board has the responsibility to review agreements pursuant to section 45, the intent of the legislation seems clear that any kind of compensation that a municipality is receiving from a utility for use of the municipal land pursuant to a section 45 agreement should be subject to the Board’s review. The requirement for a review of franchise agreements by the Board is also contained in section 61 of the EU Act. This section indicates that approval of a franchise agreement may be given if it is determined that the privilege or franchise is necessary and proper for the public convenience and properly serves the public interest. When considering this responsibility, it would seem that the Board should not approve agreements that could result in unreasonable costs being passed on through rates to the customers of the utility. The Board considers that if it approves an agreement with a provision that municipalities can set the level of franchise fee at their discretion on an annual basis, the Board would no longer be in a position to review the level of the fee to determine whether it is reasonable. Such a review is necessary to allow the Board to fulfill its mandate of ensuring that customer rates are fair and reasonable. The Board recognizes that the MG Act provides a municipality with broad authority to make many decisions in the best interest of its residents. The Board must, howeve r, temper this deference to municipal decision- making with its obligation to ensure that the fees established by the municipality are in the public interest. Accordingly, the Board has considered the criteria that should be used in reviewing franchise agreements pursuant to section 45 of the MG Act and section 61 of the EU Act. The Board reviews franchise agreements from a more general perspective than when it reviews a utility’s costs and rates. The Board considers it must, however, review such agreements to ensure that the fees are not unreasonable. The Board therefore considers that the provisions in the Standard Agreement, which allows a municipality to change the level of the franchise fee without any further review by the Board, are unacceptable. Currently franchise fees are recovered through a specific rider of the utility. The Application indicates that franchise fe...
VIEWS OF THE BOARD. The Board is concerned that the wording of this clause could interfere with the Board’s responsibility to ensure that rates are fair and reasonable and not unduly discriminatory. The Board notes that the proposed clause 12 allows the municipality the right to require the utility to charge customers within the increased area a different franchise fee percentage. This clause must be considered in light of the Board’s power to set tariffs. The Board considers it has a responsibility to ensure that the rates of investor owned utilities are not unjustly discriminatory pursuant to sections 51 and 58 of the EU Act. Furthermore, the Board has the jurisdiction to change, waive or disallow a service charge of a municipally owned utility if the Board considers the charge to be discriminatory pursuant to section 43 of the MG Act. The Board has a similar jurisdiction in respect of rural gas utilities pursuant to section 33 (2) of the Gas Distribution Act. Given this broad responsibility, the Board would have concerns about approving an agreement that could potentially result in the imposition of unjustly discriminatory rates to consumers. AUMA indicated that a differing franchise fee rate might be appropriate due to a greater demand on municipal services in the annexed areas. The Board is not convinced that the demand on municipal services should impact the fee that a municipality charges the utility for use of the right of ways. However, if a municipality were able to demonstrate that the circumstances warranted a different level of franchise fee in the annexed area, the Board might be persuaded to approve a different level of franchise fee for that area. As noted earlier, the Board considers that any instance in which the municipality intends to levy different levels of franchise fees to be recovered from customers within the municipality would require an application to the Board. The Board would have to be convinced that the different levels of franchise fee were appropriate in the circumstances in order to grant approval.
VIEWS OF THE BOARD. The Board has concerns that this clause could result in subsidization of high growth urban communities by all customers of the utility. Indeed, the Board notes AE’s comments in the proceedings that this could result in subsidization from one group to another. 3 The Board recognizes that this clause would ensure that both urban and rural municipalities are treated in the same manner with respect to the cost of relocations of facilities located on municipal lands, which are required for municipal purposes. However, municipalities would continue to be responsible for the cost of relocation of utility facilities located on private lands in cases where the municipality has requested the relocation. The Board expects that the portion of facilities that could be impacted by this policy could be considerably different between urban and rural municipalities given the difference in the distribution systems between urban and rural areas. For example, the utilities’ rural distribution systems are a combination of lines that have been installed by the utility and by Rural Electrification Associations (REAs), when purchased. Any facilities currently owned by a utility, which were originally installed by an REA, were located pursuant to the REA’s policies, which could be significantly different from the utility’s policies. It seems reasonable to expect that there could be basic differences in the facility locations between urban and rural municipalities, which could result in cross subsidizations if relocation costs are recovered through the revenue requirement. The Board considers there could be potential for cross subsidization between both urban and rural customers as well as between areas of high growth and areas of low growth if relocation costs are included in the revenue requirement. The Board believes the requirement in the Standard Agreement for a joint planning process is an appropriate measure to try to minimize line relocations that could have been avoided through better planning. The Board is still concerned that there could be less incentive for a municipality to minimize these costs if the utility is required to bear these costs and if the costs are then recovered through the revenue requirement, since relocation decisions would not have a direct monetary impact on the municipality. The Board considers that these types of costs might be further minimized if they are collected by the utility on a municipality specific basis. The Board notes XXXX’s position ...
VIEWS OF THE BOARD. The Board notes that section 28(2) of the Indian Act refers to the federal Minister of Indian Affairs. The Board encourages the aboriginal communities to direct their concerns regarding permits under this section to the Department of Indian Affairs, Government of Canada.
VIEWS OF THE BOARD. The Board considers that the wording included in the Standard Agreement is reasonable when considering that the franchise fee is intended as a formula for calculation of a fee. The Board considers that the utilities have sufficient opportunity to decrease any risks associated with bad debts through their security deposit and disconnection clauses included in their service regulations, as approved by the Board.
