Consultation to Develop a Regulatory Framework for Natural Gas Distributors’ Cap and Trade Compliance Plans

Case number
EB-2015-0363
Launched
Sector
Natural Gas
Status
Complete
Details

The OEB has completed its consultation to develop a natural gas regulatory framework to support the implementation of Ontario’s Cap and Trade program. 

The OEB issued a Regulatory Framework for the Assessment of Costs of Natural Gas Utilities’ Cap and Trade Activities (the “Regulatory Framework”) on September 26, 2016 (posted below). The Regulatory Framework describes the OEB’s expectation for each utility to develop cap and trade Compliance Plans that include robust information regarding compliance strategies. The Regulatory Framework also outlines the OEB’s approach for assessing the cost consequences of proposed cap and trade activities. 

The OEB indicated in the Regulatory Framework that it would provide a Long Term Carbon Price Forecast (LTCPF) Report, to be updated annually, and a Marginal Abatement Cost Curve (MACC), to be updated at the beginning of each three-year compliance period.

Updates

Date Issue / Document
July 20, 2017

Under its Cap and Trade Regulatory Framework, the OEB committed to provide a province-wide Marginal Abatement Cost Curve (MACC), to be updated at the beginning of each three-year Compliance Plan term. The Marginal Abatement Cost Curve report prepared by ICF Consulting Canada Inc. is now available.

May 31, 2017

Under its Cap and Trade Regulatory Framework, the OEB committed to provide a long-term (10-year) carbon price forecast, to be updated annually. The 2018-2028 Long Term Carbon Price Forecast report prepared by ICF Consulting Canada Inc. is now available.

September 26, 2016

The OEB issued its Regulatory Framework for the Assessment of Costs of Natural Gas Utilities’ Cap and Trade Activities. The OEB has developed this Framework to facilitate the recovery of costs incurred by rate-regulated natural gas utilities (Enbridge Gas Distribution Inc., Natural Resource Gas Limited, and Union Gas Limited) in meeting the legislated requirements of Ontario’s Cap and Trade program which comes into effect as of January 1, 2017.

July 28, 2016

The OEB has made a determination on billing and customer outreach in relation to the Cap and Trade framework to be implemented by Enbridge Gas Distribution Inc., Natural Resource Gas Limited and Union Gas Limited.

June 24, 2016

The OEB has received the following selected comments on its Staff Discussion Paper. The complete list, including emails, can be found here.

May 25, 2016

In April 2016, OEB staff held a series of preliminary meetings with targeted stakeholders – natural gas utilities, large-volume natural gas industry groups, low-volume consumer ratepayer groups, and the environmental groups. Staff presented the material below to initiate discussion on a draft cap and trade framework for OEB rate-regulated natural gas utilities:

May 25, 2016

The OEB has received letters from Enbridge Gas Distribution and Union Gas requesting that the OEB consider issuing interim rate orders that address the rate and bill presentment for recovery of costs related to the cap and trade program. 

May 25, 2016

The OEB released for comment a Staff Discussion Paper regarding the development of a cap and trade framework for OEB rate-regulated natural gas utilities. Comments are due on June 22, 2016.

March 10, 2016

The OEB has issued a letter to announce a consultation to develop a natural gas regulatory framework to support the implementation of Ontario’s Cap and Trade program. The framework will guide the OEB’s assessment of natural gas distributors’ Cap and Trade Compliance Plans, including the cost consequences of these plans and the mechanism for recovery of costs in rates.