Union Gas Receives Ontario Energy Board Approval for Rate Changes Effective April 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 April 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.

April 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




Gas - Price Adjustment




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


Rate M5A


Rate M7


Rate M9


Rate M10



Rate M1 and Rate M2 Customers

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

Balancing Transaction Fees

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

Full details of this application (EB-2017-0089) can be found on the Union Gas website.

South Direct Purchase Parkway Delivery Obligation Shift to Dawn is Available in 2017

As part of the 2014 Rate filing (EB-2013-0365), the OEB approved a shift of the Parkway delivery obligation to Dawn for all Union Gas direct purchase customers in its Southern operations area over the next several years. 

The first Parkway delivery obligation shift was offered in 2014. Additional Parkway delivery obligation reductions and corresponding shifts to Dawn are conditional upon the availability of appropriate transportation capacity. 

Effective Nov. 1, 2017, Union Gas will have transportation capacity available to facilitate the shift of a portion of the total Parkway delivery obligation to Dawn. Further details about the quantities available for each contract and an election form will be provided to eligible customers in April. 

Union Gas granted “leave to construct” for the Panhandle Reinforcement Project

In June 2016, Union Gas filed a leave to construct and rate approval request application (EB-2016-0186) with the OEB to expand the capacity of the Panhandle Transmission Pipeline system. This $264.5 million dollar pipeline expansion will provide the much needed incremental firm capacity required to service residential, commercial and industrial in-franchise markets in Windsor-Essex, Chatham-Kent and surrounding areas, including the fast-growing greenhouse market in the Leamington and Kingsville area.

The OEB granted the leave to construct and cost recovery approval on Feb. 23, 2017.

This project involves constructing approximately 40km of 36” pipeline from Union Gas Dawn Compressor Station located at Bentpath Line and Dawn Valley Road in the Township of Dawn-Euphemia, and the existing Dover Transmission Station located at Town Line Road and Belle Rose Line in the Municipality of Chatham-Kent, as well as completing related station modifications. Construction will begin in May 2017 and is expected to take approximately six months to complete.

Natural Gas delivers low cost, reliable energy to the province. Upgrading the size of the existing pipeline provides additional benefits: using primarily the existing footprint reduces the need for additional land rights and creates less environmental impact and eliminates future operating and maintenance costs on the pipeline being removed.

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