2016 Deferral Account Clearing Bill Adjustments

FactslineUnion Gas recently received approval from the Ontario Energy Board (OEB) to dispose of its 2016 Deferral Account balances (EB-2017-0091). This application excluded Demand Side Management (DSM) related deferral and variance accounts, which will be filed at a later date.


This account clearing will
result in a one-time delivery adjustment being applied to the October 2017 bills of all customers who received contract rate delivery services in 2016 and a one-time gas supply transportation adjustment being applied to the October 2017 bills of customers whom Union Gas provided upstream transportation services in 2016. Union Gas North customers who had contracted for storage service in 2016 will also see a refund adjustment on their bill.

How to Estimate the 2016 Delivery Adjustment

To estimate your customers’ 2016 delivery adjustment, multiply the proposed rate adjustment that applies to their service (shown below) by the actual volume of natural gas they consumed in 2016.

Union Gas North Customers

Rate Class

Approved Unit Rate for 2016 Delivery Adjustment
(cents/m3)

Rate 201

0.0122

Rate 20T 2

0.0122

Rate 100T2

0.0049

Rate 25

0.0223

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

Union Gas South Customers

Rate Class

Approved Unit Rate for 2016 Delivery Adjustment
(cents/m3)

Rate M4

0.0249

Rate M5

0.0578

Rate M7

0.0102

Rate M9

0.0230

Rate M10

0.4022

Rate T1

0.0349

Rate T2

0.0194

Rate T3

0.0557


How to Estimate the 2016 Gas Supply Transportation Adjustment

To estimate your customers’ 2016 gas supply transportation adjustment, multiply the proposed rate adjustment that applies to their service (shown in the table below) by:

Rate 20 - their 2016 annualized firm contract demand
Rate 25 - their actual volume of natural gas consumed in 2016

Union Gas North Customers

Rate Class

Approved Unit Rate for 2016 Gas Supply Transportation Adjustment

Rate 20

12.1857 cents/m3/d

Rate 25

0.3140 cents/m3

 

Update on 2015 and 2016 Demand Side Management Deferral and Variance Accounts

The balances associated with the 2016 DSM-related deferral and variance accounts were not included in this application. There are additional steps in the review of the DSM program that need to occur before Union Gas can file for disposition of the 2015 and 2016 DSM deferral and variance account balances.

The OEB assumed control of the audit process for the DSM program beginning with the 2015 DSM program year. As a result, Union Gas’ application to the OEB to dispose of its 2015 DSM deferral and variance account balances is delayed until the OEB audit of 2015 DSM program results is finalized. Similarly, until the OEB audit of 2015 DSM program results is finalized, Union Gas cannot advance the OEB audit of 2016 DSM program and Union Gas’ application to the OEB to dispose of its 2016 DSM deferral and variance account balances.

We currently anticipate the required 2015 DSM program audit to be finalized in Q1 2018, after which Union Gas will apply to the OEB to dispose of the 2015 DSM deferral and variance account balances. Once the OEB completes its review and provides approval, 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. 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