2015 Demand Side Management Deferral Account Clearing Bill Adjustment

enerline logoInformation for Union Gas South customers

Union Gas recently received approval from the Ontario Energy Board (OEB) to dispose of its 2015 Demand Side Management (DSM) deferral account balances (EB-2017-0323). Clearing these balances will result in a one-time delivery adjustment being applied to October 2018 bills for all customers who received contract rate delivery services in 2015.

Beginning with the 2015 DSM program year, the OEB directed OEB Staff to coordinate the audit process for the DSM program. Under the revised process, the 2015 DSM audit/evaluation, measurement and verification (EM&V) took 19 months to complete. Union Gas’ application to the OEB to dispose of its 2015 DSM deferral account balances could not occur until the OEB audit of 2015 DSM program was complete.

The 2015 DSM deferral account adjustment includes the recovery of the actual cost of delivering the 2015 DSM programs (versus the forecast cost built into 2015 rates), revenue recovery attributable to consumption reduction due to DSM conservation measures (LRAM), as well as incentives Union Gas earns when meeting OEB-approved DSM targets. The adjustment does not include any gas cost-related deferrals that are managed under the QRAM process.

Union Gas is recovering approximately $2.5 million from Union Gas South contract customers related to 2015 balances in the DSM deferral and variance accounts.

How to Estimate your 2015 DSM Delivery Adjustment

To estimate your 2015 DSM delivery adjustment, multiply the proposed rate adjustment that applies to your service (shown below) by the actual volume of natural gas you consumed in 2015.

Rate Class

Unit Rate for 2015 DSM Delivery Adjustment

Rate M4


Rate M5A


Rate M7


Rate M9


Rate M10


Rate T1


Rate T2


Rate T3


For more information, find the full application (EB-2017-0323) posted on our website.

2016 Demand Side Management Deferral and Variance Accounts

The OEB audit process for the 2016 DSM programs is nearing completion. Once it is completed, Union Gas will apply to the OEB to dispose of the 2016 DSM Deferral and Variance Account balances (anticipated late fall). Further information will be provided when that application is filed.

Mark your Calendar - Force Majeure and Interruption Notification System Testing Dates

Union Gas will be completing tests of both its force majeure and interruption notification systems.

Force Majeure Notification Test – Aug. 9, 2018 between 1-3 p.m.

Interruption Notification Test – Sept. 27, 2018

Customers will receive an automated email message and are asked to reply upon receipt. Please note interruption notification testing applies to interruptible service customers only.

In the event of an actual force majeure, customers are required to immediately cease consumption of natural gas upon receipt of the force majeure notification.

Keep your contact information up-to-date

It is important that Union Gas has your up-to-date contact information in case of curtailment to contract distribution service. In the event of a contract service interruption or Force Majeure, Union Gas will contact customers using the information we have on file.

Please take this opportunity to verify that your interruption and Force Majeure contact information is up-to-date. Changes to contact persons attached to a contract can be made anytime during the year using Unionline. For a reminder on how to make these updates, visit our online tutorials page and view Contact & Address Information Changes under the Contracts section.

Cap-and-Trade Update

The newly elected provincial government intends to end the current cap-and-trade program. 

On July 3, 2018, Ontario Regulation 386/18 was passed revoking Ontario Regulation 144/16: The Cap and Trade program and prohibiting Ontario Cap and Trade registered participants from purchasing, selling, trading or otherwise dealing with emissions allowances and credits. 

A news release from the Office of the Premier is available through this link.  

Union Gas will continue to work with the Ontario Energy Board (OEB) and government to understand how cap and trade is being wound down and to remove cap-and-trade charges from customer bills. At this time, cap-and-trade charges will remain on the bill until direction is received from the OEB to remove the charges. We will provide notice once additional details are known. 

Reminder: Union Gas Energy Efficiency Programs Are Still Available

Our Union Gas energy efficiency programs, which offer a variety of incentives on high efficiency technologies for our commercial and industrial customers, remain available. Conservation is one of the best long-term ways to reduce energy costs and help businesses be more competitive. Contact your account manager or visit our website for more information.

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