Enbridge Gas Distribution Inc. and Union Gas Limited have applied to the Ontario Energy Board to amalgamate to form a single natural gas distribution, transportation and storage company effective January 1, 2019. The amalgamated utility would serve over 3.5 million natural gas customers in Ontario.
Enbridge Gas Distribution Inc. and Union Gas Limited say that their customers will not pay any costs related to the amalgamation and that if the Ontario Energy Board approves the amalgamation, customers will receive a total benefit of $410 million over a ten-year period.
The rates that Enbridge Gas Distribution Inc. and Union Gas Limited currently charge customers are set using two separate frameworks that expire at the end of 2018. The Ontario Energy Board would normally review the costs of each of the gas utilities to set new rates starting in 2019. In a separate application, Enbridge Gas Distribution Inc. and Union Gas Limited have asked the Ontario Energy Board to defer its full review of their costs for 10 years and have proposed a methodology for setting rates from 2019 to the end of 2028 using a formula. The Ontario Energy Board will review this rate proposal in a separate proceeding. You can review the notice and related documents for that proceeding at www.oeb.ca/EnbridgeUnionRateFramework.