Does Enbridge owe the City of Guelph $8.8 million per year?
Guelph must stop allowing Enbridge Gas to exploit taxpayers by subsidizing this multi-billion dollar company. It pays little to use our city’s land for their profit.
Fossil fuel companies across Canada receive subsidies in various forms whether it’s for extracting oil, shipping gas through a pipeline, or burning fossil fuels for energy. Sometimes, this occurs when they pay a minimal amount to access municipal land. It seems that Enbridge Gas may be doing just that, right here in Guelph. Enbridge pays a small sum to use city-owned public property, (under our roads and other lands), to run their pipelines.
We the taxpayers are subsidizing Enbridge. Private companies need to pay their fair share.
This is not the case in Alberta, Saskatchewan, BC, Manitoba, or Nova Scotia. However this situation is prevalent throughout Ontario. If we charged Enbridge fees similar to those in other municipalities, we could potentially generate annual revenue between $4,000,000 and $9,000,000. And when we are successful, these fees are not to be passed on to Guelph gas customers.
Guelph has an opportunity to change this, especially in the face of the budget cuts of approximately $15 million being considered for many environmental programs.
The Franchise Agreement, (as it is known), between the City and Enbridge was last signed in 2005 and is up for renewal this May.
Our policy concerns include the financial interests of municipal electors, improved health outcomes for local residents,and environmental protection. A key concern in terms of public interest is whether the financial terms of the franchise agreement are unfairly skewed in favour of the gas distribution company at the expense of municipal taxpayers and represent a fossil fuel subsidy.
This is the perfect opportunity for the City to develop a motion that sets out the strategy and negotiating parameters for staff. Working with our legal council that has significant expertise in franchise agreements, energy law and the Ontario Energy Board, we have prepared a draft motion for City Council.
We have been subsidizing them long enough.
Click here to send an email to council: Stop Subsidizing Enbridge
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Background Information
Items for Upcoming City Council meeting on the issue:
Committee of the Whole
Tuesday, November 05, 2024 at 1:30 P.m.
Council Chambers
Guelph City Hall, 1 Carden Street
Anyone wishing to delegate must do so before 10:00 am Friday November 1. By following these directions:
How to register to speak at a meeting
City of Guelph Staff Report:Â Municipal Franchise Agreement with EnbridgeGas Inc.Â
Agenda Enbridge is section 7.1
Attachment-1 Draft By-law Enbridge Franchise Agreement
Attachment-2 2000 Model Franchise Agreement
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Guelph Franchise agreement with Union Gas 2005
Calculator – Fair Payment – Franchise Agreement for Gas COs using Municipal property
Support for Ottawa Energy Evolution Strategy, and City of Ottawa Report: “Model Franchise Agreement Review. (January 26, 2022) Letter from City of Ottawa Mayor Jim Watson
City of Toronto Councillor Dianne Saxe on Requiring Fair Payment from For-Profit Gas Utilities for Use of City Property
https://www.toronto.ca/legdocs/mmis/2024/ie/bgrd/backgroundfile-243203.pdf
Fair Payment – Franchise Agreement for Natural Gas companies using Municipal property
Guelph: Another Free Ride for Enbridge? eMERGE Webinar with Toronto City Councillor and former Environmental Commissioner of Ontario Dianne Saxe, Gaby Kalapos, Executive Director, Clean Air Partnership and Aaron Freeman, President and Founder Pivot Strategic.