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.
-
The OEB has issued the Approved Issues List for the MFA Review
Read the Approved Issue List in Schedule A of the Decision and Procedural Order #4.
Read the Approved Issue List in Schedule A of the Decision and Procedural Order #4.
-
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.
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.
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.
-
Notice Issued - March 26, 2026
Model Franchise Agreement Review has finished this stage -
April 15, 2026 - Virtual Information Session
Model Franchise Agreement Review has finished this stage -
Proceeding Timeline
Model Franchise Agreement Review is currently at this stageProcedural Order No.1 - May 14, 2026
- Determined the approved parties and outlined the next steps in this proceeding.
Procedural Order No. 2 - June 16, 2026
- Issued the approved Issues List.
Procedural Order No. 3 - July 16, 2026
- Invited further submissions on the Issues List
Procedural Order No. 4 - August 21, 2026
- Updated the approved Issues List, determined on parties’ evidence requests, and set out the next procedural steps of this proceeding.
-
April 19 2027
-
April 05 2027
-
March 22 2027
-
March 01 2027
-
February 15 2027
-
February 01 2027
-
December 18 2026
-
November 27 2026
-
October 29 2026
-
May 01 2026
-
Decision and Procedural Order 4 (August 21 2026) (300 KB) (PDF)
-
Procedural Order 3 (July 16 2026) (219 KB) (PDF)
-
Decision on Issues List and Procedural Order 2 (June 16 2026) (369 KB) (PDF)
-
Procedural Order 1 (May 14 2026) (459 KB) (PDF)
-
MFA Generic Hearing - Information Session (slide deck 15-04-26)
-
Generic Proceeding Regarding the Model Franchise Agreement (letter-15-10-25)
-
Model Franchise Agreement
-
OEB Generic Review Model Franchise Notice (English)
-
OEB Generic Review Model Franchise Notice (French)
-
Email Natalya.Plummer@oeb.ca -
GD
-
Email Lindsay.Wright@oeb.ca
