Union Gas Files an Application for 2017 Deferral Account Clearing

enerline logoInformation for Union Gas North Customers

On June 6, 2018, Union Gas applied to 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.

If approved, the account clearing will result in a one-time delivery adjustment being applied to the 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.

What are Deferral Accounts?

Deferral accounts are used to capture certain differences between Union Gas’ forecast and actual revenues and costs. The differences are either refunded or collected from customers, upon approval by the OEB, and are specifically allocated to each rate class.

Union Gas separates the annual deferral account balances into two separate filings - non-DSM deferral account balances (discussed here) and DSM-related deferral account balances. Separating the deferrals into two applications allows for the non-DSM deferral accounts to be cleared and communicated to our customers in a timely manner and the DSM deferral filing to be based on final, independently audited balances.

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 consumed by your business in 2017.

Rate Class

Proposed Unit Rate for 2017 Delivery Adjustment
(cents/m3)

Rate 201

0.0207

Rate 20T 2

0.0173

Rate 100T2

0.0086

Rate 25

0.0413

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

Proposed Unit Rate for 2017 Gas Supply Transportation Adjustment

North West

Rate 20

(9.2648) cents/m3/d

Rate 25

0.0512 cents/m3

North East

Rate 20

1.7859 cents/m3/d

Rate 25

0.1680 cents/m3

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

Proposed Unit Rate for 2017 Bundled Storage Adjustment
($/GJ/d)

Rate 20T

0.061

Rate 100T

0.061

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

Update on 2015, 2016 and 2017 Demand Side Management Deferral Accounts

The costs associated with the 2017 DSM-related deferral accounts are not included in this application as there are additional steps in the review of the programs and resulting account balances prior to their filing for disposition. Union Gas will file a separate application for these accounts and further information will be provided when that application is filed.

On Dec. 18, 2017, Union Gas applied to the OEB to dispose of its 2015 DSM deferral account balances (EB-2017-0323). Once the OEB completes its review and provides approvals, these balances will be disposed to customers who received contract rate delivery services in the calendar year 2015. Our current expectation is that this will be completed and the accounts cleared in October 2018.

The OEB is currently carrying out the audit process for 2016 DSM programs. We currently anticipate the required audit to be finalized by the end of the third quarter 2018, after which Union Gas will apply to the OEB to dispose of the 2016 DSM Deferral and Variance Account balances.

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