Union Gas Receives Ontario Energy Board Approval for Rate Changes Effective July 1, 2017

EnerlineInformation for Union Gas South Customers

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

July 2017 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

15.8578

16.2902

0.4324

Gas - PriceAdjustment

1.5856

2.9432

1.3576



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

0.0065

Rate M5A

0.0062

Rate M7

0.0067

Rate M9

0.0060

Rate M10

0.0086


Rate M1 and Rate M2 Customers

Rate M1 and Rate M2 will also be changing effective July 1, 2017. Customers can find current information on these rates on our website or in the notice included with their July bill.

Balancing Transaction Fees
Balancing transaction fees will be updated effective July 1, 2017. For current rates, please see the Balancing Transaction Fee Schedule.

Full details of this application (EB-2017-0185) can be found on the Union Gas website.

Consider Operational Impacts of Warm Winter to Balancing

All South direct purchase customers (T-service and Bundled-T) and their agents are reminded that balancing transactions are interruptible.

After a warm winter, storage levels can be higher than usual which can impact a customer's ability to deliver incremental supply to their T-service storage or Bundled-T Banked Gas Account.

Incremental supply is an interruptible transaction and more likely to be scheduled earlier in the injection season.  Union Gas' capability to schedule interruptible transactions is a function of capacity and nominated activity. Interruptions can occur at any time if Union Gas' capacity is less than nominated activity.

It is suggested that T-service customers manage their storage balances such that they are adequate when entering the late summer/early fall time frame. It is also suggested that Bundled-T customers looking to deliver incremental supply to balance contract expires do so sooner rather than later.

Celebrating 75 Years of Dawn Storage

Seventy-five years ago, Union Gas pioneered the use of underground storage for natural gas in Ontario - a critical but largely unheralded innovation that to this day ensures Ontarians have a reliable source of affordable energy to get through cold winters.

It was in 1938 that geologist Dr. Charles S. Evans proposed using depleted natural gas reservoirs in the company';s Dawn gas field for underground storage. On Oct. 28, 1942, natural gas was injected into a depleted reservoir at Dawn, marking the birth of Canada’s first commercially successful underground storage.

Visit uniongas.com to learn more about the interesting history of the province’s natural gas industry and the role Dawn storage has played.

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