March 23, 2025
Fair Compensation for Municipal Land
Focus on Guelph
Guelph, like other Ontario municipalities, has taken steps to ask for fair compensation for the use of municipal land used by Enbridge. Their current Municipal Franchise Agreement (MFA) expires in April of this year. These agreements are generally for 20 years, and the current agreement does not require Enbridge to pay for the use of municipal land for their gas infrastructure like it does in other provinces. Sounds like a good deal for Enbridge.
Further, the Province of Ontario has a clause in the Municipal Act that specifically forbids municipalities from charging easement fees for gas infrastructure.
In November 2024, Guelph passed a motion (10-2) to ask their staff to add a clause to the agreement, that if the provincial law is changed, that Guelph would charge for the use of municipal easements similar to what it pays in other provinces. See Guelph Politico or Guelph Today about this meeting. Enbridge Gas already has this kind of arrangement with BC, Alberta, Saskatchewan, Manitoba and Nova Scotia. In Edmonton, Enbridge Gas pays 32.9% of the delivery charge to the City. Guelph could receive about $8 million annually – dearly needed revenue to help with housing infrastructure, alleviating homelessness or easing the tax burden.
It comes as no surprise that city staff and Enbridge were not able to come up with an agreement, so Enbridge has appealed to the Ontario Energy Board to impose the existing MFA on the city for another 20 years against their will. A hearing date has not been set. See Guelph Today article.
B Local Ontario believes that Enbridge should be a good corporate citizen and pay fair easement fees. If your company agrees, please see our Fair Compensation for Use of Municipal Land page and sign our petition.
