Natural gas delivery rates

On March 7, 2016, the OEB announced that it would be updating its filing requirements for natural gas rate applications to incorporate, among other matters, the key principles as described in the Report of the Board, Renewed Regulatory Framework for Electricity Distributors: A Performance-Based Approach (pdf) (the RRFE Report). On October 13, 2016, the OEB issued its Handbook for Utility Rate Applications (pdf) (the Rate Handbook), which outlines how the RRFE will be applied to all rate regulated utilities going forward. The framework is now referred to as the Renewed Regulated Framework (RRF) to reflect this transition.

On February 16, 2017, the OEB issued Filing Requirements for Natural Gas. Together with the Rate Handbook, these filing requirements supersede the Minimum Filing Requirements for Natural Gas Distribution Cost of Service Applications dated November 20, 2005. Substantively, they are intended to consolidate all of the significant components of the 2005 filing requirements with additional requirements related to the objectives of the RRF so that the updated filing requirements applicable to natural gas utilities are reasonably aligned with the filing requirements applicable to electricity utilities.

Going forward, there will be two rate-setting policies available for natural gas utilities: Price Cap Incentive Rate-setting (Price Cap IR) and Custom Incentive Rate-setting (Custom IR). Chapter 1 outlines generic procedural matters and the expectations of the OEB for parties participating in rate-setting processes. The requirements of Chapter 1 are applicable to both rate setting methods. The requirements of Chapter 2 are applicable to cost of service rate applications under the Price Cap IR method.

Updates

Date

Issue/Document

Oct 24-17

Enbridge Gas has applied to raise its natural gas rates effective January 1, 2018.

Oct 24-17

Union Gas has applied to raise its natural gas rates effective January 1, 2018.

Feb 16-17

The OEB has issued amended filing requirements for natural gas rate applications.

Oct 13-16

The OEB has posted a Handbook to provide guidance to utilities and stakeholders on applications to the OEB for approval of rates.