The appellant gas company appealed a declaration that the respondent municipality's right to purchase the gas distribution system arose upon the expiry of the 20-year term of their franchise agreement.
The Court of Appeal allowed the appeal, holding that the franchise agreement explicitly made the municipality's right to purchase subject to section 10 of the Municipal Franchises Act.
Under section 10, the Ontario Energy Board has the power to renew or extend the franchise.
Therefore, the franchise does not terminate, and the municipality's right to purchase does not arise, if the Board orders an extension.
