Union Gas Receives Ontario Energy Board Approval for Rate Changes Effective January 1, 2018

EnerlineInformation for Union Gas South customers

Union Gas recently received approval from the Ontario Energy Board (OEB) for a change in its rates effective Jan. 1, 2018. These changes were proposed to the OEB earlier this month as part of the Quarterly Rate Adjustment Mechanism (QRAM) and approved as filed (EB-2017-0351).

January 2018 QRAM

QRAM is the mechanism Union Gas uses to review and adjust our rates for changes in natural gas prices. This is done every three months to reflect ongoing changes in the market price of natural gas and to adjust for the difference between the forecasted price of natural gas and actual price from prior periods.

 

 

Current Utility Sales   (cents/m3)

New Approved Utility Sales (cents/m3)

Change (cents/m3)

Gas Commodity Rate

13.7312

13.6260

(0.1052)

Gas - PriceAdjustment

3.4547

2.2893

(1.1654)



Delivery Rates

The following changes to bundled delivery rates reflect quarterly updates to gas costs in delivery rates (compressor fuel, unaccounted for gas, and carrying costs of gas in inventory). This can be found on the “Delivery” line of the invoice.

 

 

Approved Delivery Rate Change (cents/m3)

Rate M4

(0.0016)

Rate M5A

(0.0015)

Rate M7

(0.0017)

Rate M9

(0.0015)

Rate M10

(0.0021)


Rate M1 and Rate M2 Customers

Rate M1 and Rate M2 will also be changing effective Jan. 1, 2018. Customers can find current information on these rates on our website or in the notice included with their January bill.

Balancing Transaction Fees

Balancing transaction fees will be updated effective Jan. 1, 2018. For current rates, please see the Balancing Transaction Fee Schedule.

Full details of this application (EB-2017-0351) can be found on the Union Gas website.

2018 Interim Distribution Rate Update

On Sept. 20, 2017, Union Gas applied to the OEB for a change in its distribution rates (also known as delivery rates) effective Jan. 1, 2018 (EB-2017-0087). These rates are set using the OEB-approved pricing formula which was set out in a five-year incentive regulation framework beginning in 2014.

The OEB has determined interim distribution rates beginning Jan. 1, 2018 will be set at the current approved 2017 distribution rates as the OEB review process will not be completed before Jan. 1, 2018. Following the OEB approval in 2018, general service customers will be billed for the interim period through a temporary price adjustment and all other rate classes will be billed for the interim period through a one-time adjustment as required. 

For more details on the proposed 2018 distribution rates please see our October 2, 2017 issue of Enerline.

Cap-and-Trade Rate Update

Union Gas submitted its 2018 cap-and-trade compliance plan to the OEB on Nov. 9, 2017. In this plan there was a request for interim approval of Union Gas’ 2018 cap-and-trade costs and unit rates for recovery from customers effective Jan. 1, 2018 (EB-2017-0255). This request was denied.

The OEB has determined that interim cap-and-trade rates beginning Jan. 1, 2018 will be set at the current approved 2017 cap-and-trade rates. Union Gas will begin charging 2018 approved cap-and-trade rates following approval by the OEB. Differences between the interim and approved rates will be captured in a deferral account to be cleared at a future date.

 

Approved 2017 Cap-and-Trade Charges

EB-2016-0296 (to be implemented Jan. 1, 2018)

Proposed 2018 Cap-and-Trade Charges

EB-2017-0255

Cap-and-Trade Customer-Related Charge (if applicable)

3.3181

3.5599

Cap-and-Trade Facility-Related Charge

0.0240

0.0219


Please contact your account manager if you have any questions about this edition of Enerline.