Gas Rates Bylaw

Whereas pursuant to the Municipal Act, 2001, S.O. 2001, c.25, including s. 391 of Part XII, a municipality and a local board may pass bylaws imposing fees or charges on any class of persons:

1. for services or activities provided or done by or on behalf of it; and
2. for costs payable by it for services or activities provided or done by or on behalf of any other municipality or local board.

And Whereas pursuant to section 396 of Part XII, a bylaw under this Part may provide for:

1. Interest charges and other penalties, including the payment of collection costs, for fees and charges that are due and unpaid;
2. discounts and other benefits for early payment of fees and charges;
3. fees and charges that vary on any basis the municipality or local board considers appropriate and specifies in the bylaw, including the level or frequency of the service or activity provided or done, the time of day or of year the service or activity is provided and whether the class of persons paying the fee or charge are residents or non-residents of the municipality;
4. different classes of persons and deal with each class in a different way; and
5. the exemption, in whole or in part, of any class of persons from all or any part of the bylaw.

And Whereas pursuant to section 398 of Part XII, fees and charges imposed by a municipality or local board or a person under this Part constitute a debt of the person to the municipality or local board, respectively, and in the case of fees and charges for the supply of a public utility the treasurer of a local municipality may add fees and charges imposed by the municipality or local board, respectively, under this Part to the tax roll for the property to which the public utility was supplied in the local municipality and collect them in the same manner as municipal taxes.

Now Therefore the Council of the Corporation of the City of Kingston enacts as follows:

For the purposes of this Bylaw:

Residential refers to dwelling unit or multiple dwelling unit up to a maximum of 3 units.

Commercial refers to all non-dwelling units and all multiple dwellings over 3 units as well as any mix of dwelling units and non-dwelling units.

Commodity shall mean a charge for the physical gas molecules by volume or energy content.

Gas Rate shall mean a charge for the operation, repair and maintenance of the gas works and includes Commodity, Local Distribution Costs and Transportation and Storage.

Local Distribution Costs shall mean

1. a charge for the operation, repair and maintenance of the gas works from the City of Kingston’s connection to the Trans Canada Pipeline system to the customers’ point of connection, and
2. a charge for Cap and Trade greenhouse gas emissions compliance obligation costs.

Transportation and Storage shall mean a charge for the transportation of gas to the City of Kingston’s connection to the Trans Canada Pipeline system and the storage of gas and associated transportation of stored gas as required.

Utilities Kingston means 1425445 Ontario Ltd. operating as Utilities Kingston which, including other activities, provides management and operation of gas services under agreement with the City of Kingston.

There is imposed on relevant residential and commercial customers gas distribution rates for all gas distributed by the Corporation of the City of Kingston as set out in Appendix "A" as "Local Distribution Costs". "The Cap and Trade rate component of Local Distribution Costs is based on market costs and may be adjusted by Utilities Kingston from time to time as needed, but no more frequently than quarterly, without amending this bylaw."

There is imposed on relevant residential and commercial customers a transportation and storage rate for services procured by Utilities Kingston for the transportation and storage of gas as set out in Appendix "A" as "Transportation and Storage". This rate is based on market costs and may be adjusted from time to time without amending this bylaw.

There is imposed on relevant residential and commercial customers a rate for natural gas procured by Utilities Kingston for the supply of gas as set out in Appendix "A" as "Commodity". This rate is based on market costs and may be adjusted from time to time without amending this bylaw. This commodity rate applies to only those customers purchasing gas commodity from Utilities Kingston, referred to as System Gas customers.

Any and all payments due and owing pursuant to the provision of this bylaw are due on the due date shown on the invoice. A Utilities Kingston website link to payment options shall be provided on the front of the Utilities Kingston invoice. Payment options shall be listed on the back of the Utilities Kingston invoice when the invoice is issued in hard copy.

In the event that there is a billing error that results in the underbilling or overbilling of a customer, for any reason including but not limited to a billing system error, an incorrect rate or rate category applied, a faulty meter or faulty meter read, billing adjustments will be issued to correct the error, for a period not exceeding 24 months prior to the discovery of the error.

For billing purposes, the City of Kingston reserves the right in its sole discretion to prorate any monthly service charges to a daily rate by dividing the monthly service charge by 30.42.

The City of Kingston does not obligate itself to prorate any monthly service charges pursuant to this or former bylaws providing for the natural gas utility.

Fees and charges that are due and unpaid will be charged a penalty of up to one and one half (1 1/2) percent per month. All costs and expenses incurred by the municipality in collecting and enforcing unpaid fees and charges shall be added to the amount due and owing. The Treasurer may add unpaid fees and charges to the tax roll of the property to which the service was provided and collect them in the same manner as municipal taxes.

Appendix "A" hereby adopted as part of this bylaw subject to the provisions herein permitting the adjustment of certain charges from time to time to reflect market costs.

This Bylaw shall come into force and take effect on January 01, 2010.