Model Franchise Agreement Review

The Ontario Energy Board (OEB) is reviewing key parts of its Model Franchise Agreement – the standardized contract used when a natural gas utility seeks approval to serve a municipality. This review follows recent applications where municipalities and community groups raised concerns about certain terms in the model agreement rather than issues unique to their local circumstances.

This generic proceeding focuses on the template agreement itself, not on any individual contracts already in place. The review is being carried out in the context of Ontario’s current energy landscape and the province’s Natural Gas Policy Statement, which reinforces the continued role of natural gas in Ontario’s energy mix.

The Ontario Energy Board (OEB) is reviewing key parts of its Model Franchise Agreement – the standardized contract used when a natural gas utility seeks approval to serve a municipality. This review follows recent applications where municipalities and community groups raised concerns about certain terms in the model agreement rather than issues unique to their local circumstances.

This generic proceeding focuses on the template agreement itself, not on any individual contracts already in place. The review is being carried out in the context of Ontario’s current energy landscape and the province’s Natural Gas Policy Statement, which reinforces the continued role of natural gas in Ontario’s energy mix.

  • Virtual Information Session

    The OEB will host a virtual information session on April 15, 2026 at 9:30 AM. The session will provide an overview of the Model Franchise Agreement, the regulatory framework for municipal gas franchises, and the typical steps in an OEB proceeding.

    Please note that the session will not be transcribed or added to the public record, and OEB staff will not address specific feedback on the draft issues list.

    Those wishing to attend must register by April 10, 2026 using the Information Session Registration form. Login details will be shared closer to the event date.

  • Draft Issues List

    Each issue in the draft issues list relates to provisions within the current Model Franchise Agreement that have been recently contested. The OEB will provide information on how parties can comment on the draft issues list at a later date.

    Section 11 Alternative Easement:

    Are changes required to the provisions in section 11 of the Model Franchise Agreement pertaining to notice, the availability of easements and cost sharing in the event of the proposed sale or closing of any highway or any part of a highway where there is a gas line in existence?

    Section 12 Pipeline Relocation:

    Are changes required to the cost-sharing provisions as between municipalities and utilities in section 12 of the Model Franchise Agreement relating to the costs associated with pipeline relocations? Are changes re­quired in relation to the time requirements for the completion of relocation under section 12 (e.g., should a time be speci­fied)? If so, what would be an appropriate amount of time?

    Section 15 Disposition of the Gas System & Section 16 Use of Decommissioned Gas System:

    Are changes required in section 15 and section 16 of the Model Franchise Agreement relating to the removal of decommissioned pipelines?

    Non-substantive administrative updates to the Model Franchise Agreement:

    What terminologies (e.g., job titles) in the Model Franchise Agreement require an update to reflect current operations?

    Implementation of possible updates to the Model Franchise Agreement:

    If changes to the Model Franchise Agreement are made, how should the updated terms affect existing gas franchise agreements and applications currently before the OEB (e.g., how and when should such changes be integrated into existing agreements)?

    The scope of this proceeding does not include potential legislative or regulatory amendments, such as the payment of fees by utilities to municipalities for the use of right of way. Such fees are currently prohibited by O. Reg. 584/06: Fees and Charges. The relationship between the Drainage Act and municipal gas franchise agreements is also outside the scope of this proceeding.

Page last updated: 26 Mar 2026, 05:58 PM