Alberta Regulation 60/2023, the Rural Utilities Amendment Regulation, was promulgated on March 22, 2023, by the Lieutenant Governor in Council pursuant to section 55 of the Rural Utilities Act. This regulation amends the existing Rural Utilities Regulation (AR 151/2000) to introduce new provisions regarding the utilization of secondary objects by rural utilities.

Section 4.1: This newly added section delineates and regulates the secondary objects that associations may pursue. It authorizes the inclusion of fibre-optic goods and services as secondary objects. Associations may continue to engage in secondary activities listed in their memorandums of association, which were previously approved and filed with the Registrar, or those authorized by their directors prior to the enactment of this regulation.

Associations may engage in secondary objects through various means:

• • • Incorporating a corporation or cooperative under the Business Corporations Act or the Cooperatives Act.
    • Holding shares or membership in such corporations or cooperatives.
    • Holding debt of such entities.
    • Entering into agreements with these corporations or cooperatives.
      

Section 9: This section mandates that reserve accounts be maintained separately from accounts used for secondary objects. Surplus funds generated from secondary activities must be deposited in the reserve account and utilized in accordance with the new provisions.

Section 11.1: This section specifies the permissible uses of surplus funds from secondary objects. Such funds may only be applied toward the acquisition, maintenance, upgrading, or modernization of capital assets. A capital asset is defined as a non-financial infrastructure asset used for the production or supply of goods and services, with a useful life exceeding one year, and not intended for sale in the ordinary course of operations.

In summary, the Rural Utilities Amendment Regulation is designed to modernize and broaden the scope of activities permitted for rural utilities associations by allowing engagement in fibre-optic services. It also establishes clear guidelines for the financial management of surplus funds derived from these secondary activities, ensuring that such funds are invested in capital assets to enhance the infrastructure and services of these associations.

Source: Alberta (60/2023), April 15, 2023