2017 Deferral Account Clearing Bill Adjustments

enerline logoInformation for Union South 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.

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*
Rate M4 0.0273
Rate M5 0.0437
Rate M7 0.0179
Rate M9 (0.0401)
Rate M10 (0.2725)
Rate T1 0.0126
Rate T2 0.0021
Rate T3 (0.0784)

*Based on actual 2017 volumes

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 Rate for Typical Union South Rate Zone Customers

Rate class Delivery
Bill Impact
Rate M4 -3.6% to -2.5%
Rate M5A -4.1% to -1.8%
Rate M7 -3.1% to -2.0%
Rate M9 1.2%
Rate M10 3.7%
Rate T1 -0.3% to 0.1%
Rate T2 -3.0% to -2.0%
Rate T3 -5.3%

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 South Rate Zone Customers

Utility Sales

  Current Utility Sales   (cents/m3) New Approved Utility Sales (cents/m3) Change (cents/m3)
Gas Commodity Rate 13.1878 15.0040 1.8162
Gas - Price Adjustment 1.9543 3.0355 1.0812

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 0.0286
Rate M5A 0.0275
Rate M7 0.0302
Rate M9 0.0256
Rate M10 0.0364

Rate M1 and Rate M2 Customers

Rate M1 and Rate M2 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.