A HIDDEN TAX in your GAS BILL.

UPDATE OF OLD ARTICLE: If you live in Vernon or Coldstream take a good look at your Terasen Gas Bill. You will have a 3.09% Franchise fee charged on it. This is 3.09% of the total that you pay for gas consumed and delivered. To make it more crazy the Federal Govt charges you GST on the Franchise Fee.
WHERE DOES THIS MONEY GO? If you guessed "my local municipal government" you are correct. Every time the price of gas goes up your City benefits. Remember that next time they complain about gas prices and the effect on arena heating etc.
There is NO Franchise Fees in the lower mainland or any other unincorporated areas like AREA C or B. Bet you weren't told that when you joined your local City. (too late Okanagan Landing or COMMONAGE Something to consider for Swan Lake Corridor and SILVER STAR!!
HOW MUCH DOES MY CITY Of VERNON GET FROM THIS TAX??? IN 2006 over $525,000. (see data below)
Total actual 2000 to 2006 = $3,168,152 plus GST of $221,770
YEAR
3.09% BC GAS FRANCHISE FEE
2000 $290,331
2001 $398,823
2002 $501,972
2003 $472,388
2004 $487,013
2005 $492,625
2006 (est) $525000 (actual will be $550,000)
Totals $3,168,152

HISTORY OF THIS TAX
In 1957, BC Gas (known at the time as InlandNatural Gas) was afforded the exclusive right through a Franchise Agreement to establish a natural gas distribution system within the City of Vernon.Access to road rights-of-way was extended throughthe Agreement to allow for the construction of system infrastructure. In exchange for these privileges, BCGas was required to pay an annual franchise fee to the City at an amount equal to 3% of natural gas saleswithin the municipality.The Agreement signed in 1957 has been renewed once and extended several times under its original terms and conditions. This represents a tax to you that is given to your local municipality and in my case the CITY of VERNON. You will not see any such fee on your telephone, hydro or even your cable bills. Only people who use BC Gas are taxed by the City of Vernon for their heating bill. Last year the city collected $492,625 and this year expects to collect $525,000.The City maintains that this is the cost of road repairs etc caused by BC Gas. They admit that they have never done a cost analysis of the actual cost but they have said that the revenue definitely exceeds the costs of repairs.