Union Gas Files an Application for 2015 Demand Side Management Deferral Account Clearing

FactslineOn Dec. 18, 2017, Union Gas applied to the Ontario Energy Board (OEB) to dispose of its 2015 Demand Side Management (DSM) deferral account balances (EB-2017-0323).

The proposed 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 proposed adjustment does not include any gas cost-related deferrals that are managed under the QRAM process.

Union Gas has proposed to recover approximately $1.5 million from contract customers related to 2015 balances in the DSM deferral and variance accounts.

The OEB directed OEB Staff to coordinate the audit process for the DSM program beginning with the 2015 DSM program year. Under the revised process, the 2015 DSM audit/evaluation, measurement and verification (EM&V) took 19 months to complete. As a result, Union Gas’ application to the OEB could not occur until the OEB audit of 2015 DSM program was complete.

As part of its application, Union Gas has included recommendations to the OEB for improvement to the DSM evaluation and audit process for the 2016 DSM program year and beyond.

Once the OEB completes its review and provides their decision on this application, the clearance of these balances will result in an amount being applied to the bills of customers who received contract rate delivery services in the calendar year 2015. Union Gas has proposed the deferral and variance account balances be implemented on Apr. 1, 2018 to align with other rate changes. This is dependent on the timing of the OEB’s decision. Further information will be provided when a decision is received from the Board.

How to Estimate the 2015 DSM Delivery Adjustment

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

Union Gas North Customers

Rate Class

Proposed Unit Rate for 2015 DSM Delivery Adjustment

Rate 201


Rate 20T2


Rate 100T2


Rate 25


1 Sales and Bundled-T customers only
2 T-service customers only

Union Gas South Customers

Rate Class

Proposed Unit Rate for 2015 DSM Delivery Adjustment

Rate M4


Rate M5


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 in its initial stages and as such we do not yet know the timing of its completion. Once it is completed, Union Gas will apply to the OEB to dispose of the 2016 DSM Deferral and Variance Account balances. Further information will be provided when that application is filed.

If you have any questions about this edition of Factsline, please contact Patrick Boyer.

Patrick Boyer (519) 436-5470   Cell (519) 436-4915   Email: pboyer@uniongas.com