Union Gas Files an Application for 2016 Deferral Account Clearing

EnerlineInformation for Union Gas South Customers

On April 21, 2017, Union Gas applied to the Ontario Energy Board (OEB) to dispose of its 2016 Deferral Account balances (EB-2017-0091). This 2016 deferral account application excludes Demand Side Management (DSM) related deferrals, which will be filed at a later date.

If approved, the account clearing will result in a one-time delivery adjustment being applied to the bills of all customers who received contract rate delivery services in 2016 and a one-time gas supply transportation adjustment being applied to the bills of customers whom Union Gas provided upstream transportation services in 2016.  

What are Deferral Accounts?

Deferral accounts are used to capture certain differences between Union Gas’ forecast and actual revenues and costs. The differences are either refunded or collected from customers, upon approval by the OEB, and are specifically allocated to each rate class.

Union Gas separates the annual deferral account balances into two separate filings - non-DSM deferral account balances (discussed here) and DSM-related deferral account balances. Separating the deferrals into two applications allows for the non-DSM deferral accounts to be cleared and communicated to our customers in a timely manner and the DSM deferral filing to be based on final, independently audited balances.

How to Estimate the 2016 Delivery Adjustment

You can estimate your 2016 delivery adjustment by multiplying the proposed rate adjustment that applies to your service (shown below) by the actual volume of natural gas your business consumed in 2016.

Rate Class

Proposed Unit Rate for 2016 Delivery Adjustment
(cents/m3)

Rate M4

0.0363

Rate M5

0.0884

Rate M7

0.0134

Rate M9

0.0261

Rate M10

0.4121

Rate T1

0.0432

Rate T2

0.0218

Rate T3

0.0601

 
Full details of this filing (EB-2017-0091) can be found on the Union Gas website.

Update on 2015 and 2016 Demand Side Management Deferral Accounts

The costs associated with the 2016 DSM-related deferral accounts are not included in this application as there are additional steps in the review of the programs and resulting account balances prior to their filing for disposition. Union Gas expects to file a separate application for these accounts later in 2017. Further information will be provided when that application is filed.

The OEB is currently carrying out the audit process for 2015 DSM programs. We currently anticipate the required audit to be finalized by the end of the second quarter 2017, after which Union Gas will apply to the OEB to dispose of the 2015 DSM Deferral and Variance Account balances. Once the OEB completes its review and provides approvals, these balances will be disposed to customers who received contract rate delivery services in the calendar year 2015.  

If you have any questions about this edition of Enerline, please contact your account manager.