2017 Deferral Account Clearing Bill Adjustments

enerline logoInformation for Union North Rate Zone Customers

Union Gas recently received approval from the Ontario Energy Board (OEB) to dispose of its 2017 Deferral Account balances (EB-2018-0105). This 2017 deferral account application excludes any 2017 Cap and Trade or Demand Side Management (DSM) related deferrals, which will each be filed at a later date.

This account clearing will result in a one-time delivery adjustment being applied to the January 2019 bills of all customers who received contract rate delivery services in 2017 and a one-time gas supply transportation adjustment being applied to the bills of customers whom Union Gas provided upstream transportation services in 2017. North customers who received bundled storage services in 2017 will also see a one-time adjustment on their bill.

How to Estimate the 2017 Delivery Adjustment

You can estimate your 2017 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 2017.

Rate Class Approved Unit Rate for 2017 Delivery Adjustment*
(cents/m3)
Rate 201 0.0175
Rate 20T 2 0.0140
Rate 100T2 0.0072
Rate 25 0.0281

*Based on actual 2017 volumes
1
Sales and Bundled-T customers only
2 T-service customers only

How to Estimate the 2017 Gas Supply Transportation Adjustment

You can estimate your 2017 gas supply transportation adjustment by multiplying the proposed rate adjustment that applies to your service (shown in the table below) by:

Rate 20 - your 2017 annualized firm contract demand
Rate 25 - your actual volumes of natural gas consumed in 2017

Rate Class Approved Unit Rate for 2017 Gas Supply Transportation Adjustment*
North West
Rate 20 (9.4360) cents/m3/d
Rate 25 0.0522 cents/m3
North East
Rate 20 1.8192 cents/m3/d
Rate 25 0.1702 cents/m3

*Based on actual 2017 volumes/demand

How to Estimate the 2017 Bundled Storage Adjustment

You can estimate your 2017 bundled storage adjustment by multiplying the proposed rate adjustment that applies to your service (shown below) by your 2017 annualized firm contract demand.

Rate Class Approved Unit Rate for 2017 Bundled Storage Adjustment*
($/GJ/d)
Rate 20T 0.062
Rate 100T 0.062

*Based on actual 2017 demand.

Full details of this filing (EB-2018-0105) can be found on the Union Gas website.

Union Gas Files 2019 Distribution Rates Application

On Dec. 14, 2018, Union Gas and Enbridge Gas Distribution applied to the Ontario Energy Board (OEB) on behalf of Enbridge Gas Inc. (EB-2018-0305) for a change in distribution rates (also known as delivery rates). These rates are set using the OEB-approved multiyear incentive rate-making mechanism for the deferred rebasing period of 2019 to 2023, established in the Mergers, Acquisitions, Amalgamations and Divestitures (MAADs) (EB-2017-0306) and associated Rate Setting Framework (EB-2017-0307) decisions.

A range of delivery bill impacts for typical contract rate customers in the Union rate zones is shown below. Individual bill impacts will vary and depend upon a customer's use of natural gas.

Note: The OEB has determined interim distribution rates beginning Jan. 1, 2019 will be set at the current approved 2018 distribution rates as the OEB review process will not be completed before Jan. 1, 2019. Following the OEB approval in 2019, 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.

Delivery Bill Impact Range for Typical Union North Rate Zone Customers

Rate class Delivery
Bill Impact Range
(%)

Rate 20 6.8% to 6.9%
Rate 25 15.4%
Rate 100 22.8% to 23.6%

Full details of this filing (EB-2018-0305) can be found on the Union Gas website.

Union Gas Receives Ontario Energy Board Approval for Rate Changes Effective Jan. 1, 2019

Union Gas recently received approval from the Ontario Energy Board (OEB) for rate changes effective Jan. 1, 2019. These changes were proposed to the OEB earlier this month as part of the Quarterly Rate Adjustment Mechanism (QRAM) and approved as filed (EB-2018-0315).

January 2019 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.

Information for Union North Rate Zone Customers

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 20 0.0084
Rate 100 0.0001

Rate 01 and Rate 10 Customers

Rate 01 and Rate 10 will also be changing effective Jan. 1, 2019. 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, 2019. For current rates, please see the Balancing Transaction Fee Schedule.

Full details of this application (EB-2018-0315) can be found on the Union Gas website.

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