Information for Energy Marketers

Enbridge Gas Receives Ontario Energy Board Approval for Rate Changes Effective April 1, 2021

Enbridge Gas recently received approval from the Ontario Energy Board (OEB) for rate changes effective April 1, 2021 (EB-2021-0070). These changes were proposed to the OEB earlier this month as part of the Quarterly Rate Adjustment Mechanism (QRAM) and approved as filed.

QRAM is the mechanism Enbridge Gas uses to review and adjust our rates for changes in natural gas prices. This is done every three months to reflect ongoing changes in the market price of natural gas and to adjust for the difference between the forecasted price of natural gas and actual price from prior periods.

In addition to updating rates in the Enbridge Gas Distribution (EGD) and Union rate zones in accordance with Enbridge Gas’ Board-approved QRAM methodologies, April 1, 2021 rates will also reflect:

  • an increase to the federal carbon charge and facility carbon charge as approved by the OEB in Enbridge Gas’ 2021 Federal Carbon Pricing Program proceeding (EB-2020-0212), and
  • the disposal of the 2017 and 2018 Demand Side Management (DSM) deferral and variance account balances (EB-2020-0067). Clearance of these balances will result in a rate adjustment being applied to bills for all customers who received in-franchise contract rate delivery services in 2018. Enbridge Gas will uniformly dispose of the balances over three equal installments from April to June.

More information on the federal carbon charge, facility carbon charge and the 2017 and 2018 Demand Side Management (DSM) deferral and variance account balances can be found in our Feb. 25, 2021 communication.

April 2021 QRAM

Information for EGD Rate Zone Customers

Utility Sales

  Current Gas Supply Commodity Charge (cents/m3) New Approved Gas Supply Commodity Charge (cents/m3) Change (cents/m3)
Rate 100 11.4428 11.9749 0.5321
Rate 110 11.3844 11.9165 0.5321
Rate 115 11.3844 11.9165 0.5321
Rate 135 11.3917 11.9237 0.5321
Rate 145 11.3881 11.9202 0.5321
Rate 170 11.3844 11.9165 0.5321
  Current Cost Adjustment - Gas Supply Component (cents/m3) New Approved Cost Adjustment - Gas Supply Component (cents/m3) Change (cents/m3)
Rate 100 (1.0560) (0.9569) 0.0991
Rate 110 (0.3786) (0.1890) 0.1896
Rate 115 (0.2868) (0.0849) 0.2019
Rate 135 (0.2868) (0.0849) 0.2019
Rate 145 (0.9007) (0.7809) 0.1198
Rate 170 (0.8241) (0.6941) 0.1300

Transportation Charges

  Current Transportation Charge (cents/m3) New Approved Transportation Charge
(cents/m3)
Change (cents/m3)
Transportation to Enbridge Gas 4.1187 4.0433 (0.0754)
Transportation from Dawn 0.9703 0.9703 0.0000

Delivery Rates

The following changes to delivery rates reflect quarterly updates to gas costs in delivery rates (unaccounted for gas). This can be found on the “Delivery” line of the invoice.

  Approved Delivery Rate Change* (cents/m3)
Rate 100 0.0007
Rate 110 0.0069
Rate 115 0.0068
Rate 135 0.0067
Rate 145 0.0071
Rate 170 0.0069

*Excludes approved changes reflecting the 2021 Federal Carbon Pricing Program application (EB-2020-0212).

Load Balancing Charges

  Approved Load Balancing Rate Change (cents/m3)
Rate 100 (0.0068)
Rate 110 (0.0011)
Rate 115 (0.0004)
Rate 135 0.0000
Rate 145 (0.0023)
Rate 170 (0.0010)

General Service Rate 6 will also be changing effective April 1, 2021. Customers can find current information on these rates on our website or in the notice included with their April bill.

Information for Union North Rate Zone Customers

Delivery Rates

The following changes to delivery rates reflect quarterly updates to gas costs (compressor fuel, unaccounted for gas, and carrying costs of gas in inventory). This can be found on the “Delivery” line of the invoice.

  Approved Delivery Rate Change* (cents/m3)
Rate 20 0.0019
Rate 100 No change

*Excludes approved changes reflecting the 2021 Federal Carbon Pricing Program application (EB-2020-0212).

Rate 01 and Rate 10 Customers

Rate 01 and Rate 10 will also be changing effective April 1, 2021. Customers can find current information on these rates on our website or in the notice included with their April bill.

Balancing Transaction Fees

Balancing transaction fees will be updated effective April 1, 2021. For current rates, please see the Balancing Transaction Fee Schedule.

Information for Union South Rate Zone Customers

Utility Sales

  Current Utility Sales (cents/m3) New Approved Utility Sales (cents/m3) Change (cents/m3)
Gas Commodity Rate 13.0590 13.4774 0.4184
Gas - Price Adjustment 0.3634 0.2312 (0.1322)

Delivery Rates

The following changes to delivery rates reflect quarterly updates to gas costs (compressor fuel, unaccounted for gas, and carrying costs of gas in inventory). This can be found on the “Delivery” line of the invoice.

  Approved Delivery Rate Change* (cents/m3)
Rate M4 0.0073
Rate M5A 0.0064
Rate M7 0.0069
Rate M9 0.0059
Rate M10 0.0083

*Excludes approved changes reflecting the 2021 Federal Carbon Pricing Program application (EB-2020-0212).

Rate M1 and Rate M2 Customers

Rate M1 and Rate M2 will also be changing effective April 1, 2021. Customers can find current information on these rates on our website or in the notice included with their April bill.

Balancing Transaction Fees

Balancing transaction fees will be updated effective April 1, 2021. For current rates, please see the Balancing Transaction Fee Schedule.

For more information, find the full application (EB-2021-0070) posted on our website.

Enbridge Gas files an Application for 2019 Demand Side Management Deferral and Variance Account Clearing

On March 10, 2021, Enbridge Gas applied to the Ontario Energy Board (OEB) to dispose of its 2019 Demand Side Management (DSM) deferral and variance account balances (EB-2021-0072). The DSM program is our energy conservation program that is available to customers.

The proposed 2019 DSM deferral and variance account adjustment includes the actual cost of delivering the DSM programs (versus the forecast cost built into 2019 rates), revenue recovery attributable to consumption reduction due to DSM conservation measures (Lost Revenue Adjustment Mechanism), as well as incentives Enbridge 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 or other non-commodity deferral balances.

Enbridge Gas is proposing to refund approximately $4.120 million to in-franchise contract rate class customers in the Enbridge Gas Distribution (EGD) rate zone, refund approximately $0.876 million to Union North rate zone in-franchise contract rate class customers and recover approximately $2.568 million from Union South rate zone in-franchise contract rate class customers related to 2019 balances in the DSM deferral and variance accounts.

Once the OEB completes its review and provides their final decision on this application, clearance of these balances would result in a one-time rate adjustment being applied to bills for all customers who received in-franchise delivery services. Enbridge Gas has proposed to uniformly dispose of the balances with a one-time billing adjustment effective Oct. 1, 2021. This will be dependent on the timing of the OEB’s decision and we will provide further information when a decision is received from the Board.

How to Estimate the 2019 DSM Delivery Adjustment

To estimate your customers’ 2019 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 2019.

EGD Rate Zone Customers

Rate Class Proposed Unit Rate for 2019 DSM Delivery Adjustment (cents/m3)
Rate 100 2.4205
Rate 110 (0.0911)
Rate 115 (0.0827)
Rate 135 0.0789
Rate 145 (4.8938)
Rate 170 (0.6557)

Union North Rate Zone Customers

Rate Class Proposed Unit Rate for 2019 DSM Delivery Adjustment (cents/m3)
Rate 20 (0.0891)
Rate 100 (0.0398)

Union South Rate Zone Customers

Rate Class Proposed Unit Rate for 2019 DSM Delivery Adjustment (cents/m3)
Rate M4 0.2297
Rate M5 0.2615
Rate M7 0.3908
Rate M9 -
Rate M10 -
Rate T1 (0.1543)
Rate T2 (0.0149)
Rate T3 -

For more information, find the full application (EB-2021-0072) posted on our website.

If you have any questions about the material in this newsletter, please contact Rob DiMaria or Patrick Boyer.