Information for Energy Marketers

2018 Deferral Account Clearing Bill Adjustments

Enbridge Gas Inc. recently received approval from the Ontario Energy Board (OEB) to dispose of amounts recorded in certain 2018 deferral and variance accounts and for the amount of its 2018 earnings that it is required to share with customers (EB-2019-0105). (Note: The 2018 deferral account application excludes any 2018 Cap-and-Trade or Demand Side Management (DSM) related deferrals).

Union rate zone customers: This account clearing will result in a one-time delivery adjustment being applied to the April 2020 bill of all customers who received contract rate delivery services in 2018 and a one-time gas supply transportation adjustment being applied to the bills of customers whom Union Gas (now operating as Enbridge Gas) provided upstream transportation services in 2018. North customers who received bundled storage services in 2018 will also see a one-time adjustment on their April bill.

EGD rate zone customers: This account clearing will result in a one-time delivery adjustment being applied to the April 2020 bill of all customers who received contract rate delivery services in 2018.

What are Deferral Accounts?

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

Enbridge Gas separates the annual deferral account balances into three separate filings - non-DSM deferral account balances (discussed here), DSM-related deferral account balances, and carbon-related deferral account balances. Separating the deferrals into three separate applications allows for the deferral accounts to be cleared and communicated to our customers in a timely manner.

How to Estimate the 2018 Delivery Adjustment

You can estimate your customers’ 2018 delivery adjustment by multiplying the rate adjustment that applies to their service (shown below) by the actual volume of natural gas they consumed in 2018.

EGD Rate Zone Customers

Approved Unit Rate for 2018 Delivery Adjustment
(cents/m3)
System Gas Ontario T-Service Western T-Service Dawn T-Service
Rate 1 (0.4764) (0.4631) (0.4764) (0.4631)
Rate 6 (0.1482) (0.1349) (0.1482) (0.1349)
Rate 9 0.0427 0.000 0.000 0.0000
Rate 100 (0.0614) 0.000 (0.0614) (0.0480)
Rate 110 0.0203 0.0337 0.0203 0.0337
Rate 115 0.0322 0.0456 0.0322 0.0456
Rate 135 0.0315 0.0448 0.0315 0.0448
Rate 145 0.0045 0.0179 0.0045 0.0179
Rate 170 0.0417 0.0550 0.0417 0.0550
Rate 200 0.0304 0.0438 0.0304 0.0438


Approved CD Unit Rate for 2018 Delivery Adjustment
(cents/m3)
Rate 125 (2.3490)
Rate 300 (11.0958)
Rate 332 (2.2992)

Union North Rate Zone Customers

Rate Class Approved Unit Rate for 2018 Delivery Adjustment
(cents/m3)
Rate 201 0.0382
Rate 20T2 0.0339
Rate 100T2 0.0141
Rate 25 0.0480

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

Union South Rate Zone Customers

Rate Class Approved Unit Rate for 2018 Delivery Adjustment
(cents/m3)
Rate M4 (0.0224)
Rate M5 0.1654
Rate M7 0.0029
Rate M9 (0.0141)
Rate M10 (0.0451)
Rate T1 (0.0444)
Rate T2 (0.0470)
Rate T3 (0.0599)

How to Estimate the 2018 Gas Supply Transportation Adjustment

You can estimate your customers’ 2018 gas supply transportation adjustment by multiplying the rate adjustment that applies to their service (shown in the table below) by:

Rate 20 - their 2018 annualized firm contract demand
Rate 25 - their actual volumes of natural gas consumed in 2018

Union North Rate Zone Customers

Rate Class Approved Unit Rate for 2018 Gas Supply Transportation Adjustment
North West
Rate 20 (19.4194) cents/m3/d
Rate 25 0.2378 cents/m3
North East
Rate 20 (2.9033) cents/m3/d
Rate 25 (0.0870) cents/m3

How to Estimate the 2018 Bundled Storage Adjustment

You can estimate your customers’ 2018 bundled storage adjustment by multiplying the rate adjustment that applies to their service (shown below) by their 2018 annualized firm contract demand.

Union North Rate Zone Customers

Rate Class Approved Unit Rate for 2018 Bundled Storage Adjustment
($/GJ/d)
Rate 20T 0.074
Rate 100T 0.074

Full details of this filing (EB-2019-0105) can be found on the Enbridge Gas or Union Gas websites. If you have any questions about this material, please contact Rob DiMaria or Patrick Boyer.