2015 Demand Side Management Deferral Account Clearing Bill Adjustment

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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 refunding approximately $1 million to Union Gas North contract customers and 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 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

Unit Rate for 2015 DSM Delivery Adjustment
(cents/m3)

Rate 201

0.0076

Rate 20T2

0.0076

Rate 100T2

(0.0738)

Rate 25

0.0000

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


Union Gas South Customers

Rate Class

Unit Rate for 2015 DSM Delivery Adjustment
(cents/m3)

Rate M4

0.4745

Rate M5

(0.5583)

Rate M7

0.5968

Rate M9

0.0000

Rate M10

0.0000

Rate T1

(0.2247)

Rate T2

(0.0003)

Rate T3

0.0000

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.

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 Factsline, please contact Patrick Boyer.

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