Information for Large Volume Union North Rate Zone Customers

Enbridge Gas Inc. Files an Application for 2019 Deferral and Variance Account Clearing

On Sept. 3, 2020, Enbridge Gas Inc. applied to the Ontario Energy Board (OEB) for approval to dispose of amounts recorded in certain 2019 deferral and variance accounts (EB-2020-0134). This application excludes the 2019 Federal Carbon Pricing Program (FCPP) related deferral and variance accounts as well as the Demand Side Management (DSM) deferral and variance accounts for which Enbridge Gas has separate applications.

If approved as filed, the account clearing will result in a one-time delivery adjustment being applied to a future bill of all customers who received contract rate delivery services in 2019 and for Union rate zone customers, a one-time gas supply transportation adjustment being applied to the bills of customers whom Enbridge Gas provided upstream transportation services in 2019. Union North rate zone customers who received bundled storage services in 2019 will also see a one-time adjustment on a future bill.

Enbridge Gas has proposed to dispose of the approved 2019 deferral and variance account balances with the first QRAM application following the OEB’s approval, as early as Jan. 1, 2021.

What are Deferral and Variance Accounts?

Deferral and variance accounts are used to capture certain differences between Enbridge Gas’ forecast amounts approved for collection through rates and actual revenues and costs collected or incurred. The differences are either refunded or collected from customers, upon approval by the OEB, and are specifically allocated to each rate class.

How to Estimate the 2019 Delivery Adjustment

You can estimate your 2019 delivery adjustment by multiplying the proposed rate adjustment that applies to your service (shown below) by the actual volume of natural gas you consumed in 2019.

Rate Class Proposed Unit Rate for 2019 Delivery Adjustment
(cents/m3)
Rate 20 0.0039
Rate 100 (0.0022)
Rate 25 (0.0046)

How to Estimate the 2019 Gas Supply Transportation Adjustment

You can estimate your 2019 gas supply transportation adjustment by multiplying the proposed rate adjustment that applies to your service (shown in the table below) by:

Rate 20 - your 2019 annualized firm contract demand
Rate 25 - your actual volumes of natural gas consumed in 2019

Rate Class Proposed Unit Rate for 2019 Gas Supply Transportation Adjustment
North West
Rate 20 (11.0414) cents/m3/d
Rate 25 0.2581 cents/m3
North East
Rate 20 0.0114 cents/m3/d
Rate 25 0.0228 cents/m3

How to Estimate the 2019 Bundled Storage Adjustment

You can estimate your 2019 bundled storage adjustment by multiplying the proposed rate adjustment that applies to your service (shown below) by your 2019 annualized firm contract demand.

Rate Class Proposed Unit Rate for 2019 Bundled Storage Adjustment
($/GJ/d)
Rate 20T 0.141
Rate 100T 0.141

Full details of this filing (EB-2020-0134) can be found on our website.

Enbridge Gas Files 2021 Federal Carbon Pricing Program Application

On Sept. 30, 2020, Enbridge Gas Inc. filed its 2021 Federal Carbon Pricing Program (FCPP) application with the Ontario Energy Board (OEB) for rate changes effective April 1, 2021 (EB-2020-0212). This application is seeking approval of rates to recover the costs associated with the federal Greenhouse Gas Pollution Pricing Act (GGPPA) as a pass-through to customers. This application does not include approval for disposition of the 2020 balances in the FCPP-related deferral and variance accounts. The disposition of the 2020 balances will be delayed by one year (to be filed as part of Enbridge Gas’ 2022 FCPP application), in order to file final year-end audited balances in these accounts.

In accordance with the GGPPA, the federal government implemented a carbon pricing system in Ontario in 2019. Enbridge Gas bills and collects federal carbon charges from its customers and remits the money that we collect to the federal government.

Proposed 2021 Federal Carbon Pricing Customer-Related Charge (if applicable)
7.8300 cents/m3
Proposed 2021 Federal Carbon Pricing Facility-Related Charge (Union Rate Zones)
0.0127 cents/m3

The customer-related federal carbon charge (as applicable) is a separate line item on the bill. Customers who have registered and received an exemption certificate from the federal government will not be charged the customer-related charge. The facility-related facility carbon charge, which applies to all customers in each rate class regardless of their exemption status, is included in delivery or transportation charges on customers’ bills.

The federal carbon charge started at $20/tCO2e (3.91 cents/m3) in April 2019 and is expected to reach $50/tCO2e (9.79 cents/m3) in April 2022. The federal carbon charge for 2021 is based on $40/tCO2e. All natural gas consumption is subject to the federal carbon charge except natural gas consumption that qualifies for exemption under the GGPPA.

Full details of the Federal Carbon Pricing Program application (EB-2020-0212) can be found on our website.

Enbridge Gas Files 2021 Phase 2 Rates Application (Incremental Capital Module)

On Oct. 15, 2020, Enbridge Gas Inc. filed its 2021 Phase 2 Rate Application and Evidence (EB-2020-0181).

Our 2021 rate application has been separated into two phases to allow for timely review and adjudication. Phase 1 of this application addressed the incentive rate-setting mechanism (IRM) related elements, which includes the annual rate escalation, pass through-costs, capital pass-through adjustments and Parkway Delivery Obligation rate adjustments. Phase 2 of this application addresses matters related to Incremental Capital Module (ICM) funding (including a Utility System Plan, an Asset Management Plan and a Customer Engagement Study).

Enbridge Gas is seeking OEB approval for ICM funding for three projects in 2021:

  • St Laurent NPS 12 Replacement project (EGD rate zone)
  • London Line Replacement Project (Union South rate zone)
  • Sarnia Industrial Reinforcement Project (Union South rate zone)

There are no delivery bill impacts for typical Union North contract rate customers resulting from the 2021 Phase 2 rate application. Visit our website for full details of this filing (EB-2020-0181).

Customer Telemetry Requirements

Important reminder: Contract customers are required to provide a dedicated analogue phone line and electrical power circuitry for the telemetry equipment installed at each point of consumption.

Telemetry is required to collect measurement data from a customer’s meter back to our measurement system. For Enbridge Gas to collect your hourly data, you will need to have a meter and an electronic volume integrator (EVI) unit at the point of consumption.

Customers are required to have a working, dedicated physical analogue phone line for Enbridge Gas to call to a customer’s instrumentation (EVI) to obtain consumption data from the unit.

Voice over Internet Protocol (VoIP) lines are not reliable or stable enough to work properly with the modems inside an EVI unit. With a VoIP line, you may experience sporadic reads and may have additional costs associated with telecom provider site visits because the consumption data cannot be pulled from the unit.

Once an analogue phone line is installed:

  • Contact your account manager and/or Enbridge Gas (ONTUGLGASMEASUREMENTINTEGRITY@enbridge.com) so your phone number can be added to the call-out system.
  • Twice a day, Enbridge Gas will call out to your EVI to obtain consumption data.
  • Enbridge Gas will notify you if we cannot access your phone line at the point of consumption.
  • Once notified, you will inform their telecom provider of the phone line issue.
  • Enbridge Gas technicians will work with your telecom provider to resolve the issue.

If you have any questions about your telemetry equipment, you can contact your account manager.

If you have any questions about the material in this newsletter, please contact your account manager.