Union Gas Receives Ontario Energy Board Approval for 2018 Distribution Rates Effective January 1, 2018

EnerlineInformation for Union Gas North customers

Union Gas recently received approval from the Ontario Energy Board (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 average delivery rate change for north contract rate customers is shown below in cents/m3 and $/GJ. Individual bill impacts will vary and depend upon a customer's use of natural gas. The rate changes exclude cap-and-trade charges, which were filed as part of Union Gas’ 2018 Cap-and-Trade Compliance Plan in November last year.

 

Cents/m3

 

 

Rate class

2017 approved average
delivery rate
(cents/m3)
(1)(2)

2018 approved average
delivery rate
(cents/m3)
(2)(3)

 

Rate change (%)

 

 

Rate 20

2.2398

2.2424

0.1%

 

 

Rate 25

2.7201

2.7086

-0.4%

 

 

Rate 100

0.8392

0.8382

-0.1%

 

(1) EB-2017-0351 January 2018 QRAM

(2) Excludes Cap-and-Trade Customer-Related and Facility-Related Charges

(3) EB-2017-0087 2018 Rates

 

$/GJ

 

 

Rate class

2017 approved average
delivery rate
($/GJ)
(1)(2)(4)

2018 approved average
delivery rate
($/GJ)
(2)(3)(4)

 

Rate change (%)

 

 

Rate 20

0.5911

0.5918

0.1%

 

 

Rate 25

0.7179

0.7149

-0.4%

 

 

Rate 100

0.2215

0.2212

-0.1%

 

(1) EB-2017-0351 January 2018 QRAM

(2) Excludes Cap-and-Trade Customer-Related and Facility-Related Charges

(3) EB-2017-0087 2018 Rates

(4) Conversion to GJ based on 37.89GJs/10³m³

Reminder: Balancing Transactions are Interruptible

At this time of year, there is a greater likelihood that the daily scheduling of balancing transactions may be interrupted. If interruptions of balancing transactions are necessary, customers will be notified during the scheduling process and will need to submit a revised nomination.

Balancing transactions are subject to the rules outlined in the Priority of Service of Guideline. Two of the priority tiers apply specifically to Direct Purchase balancing transactions:

  • Balancing (Direct Purchase) > 500 GJ/day, and
  • Balancing (Direct Purchase) <= 500 GJ/day

If Union Gas interrupts transportation, storage withdrawals or storage injections, it could impact the scheduling of balancing transactions. For example:

  • When withdrawals are being interrupted, ex-franchise transfer transactions may be interrupted as well. Incremental supply transactions are still available to those that need them. Customers would need to be prepared to reduce an EFT transaction.
  • When injections are being interrupted, it means incremental supply transactions may be interrupted as well. Customers would need to be prepared to reduce their incremental deliveries.

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