Rate Framework for the Delivery of Natural Gas

Enbridge Gas Distribution Inc.
Union Gas Limited

Enbridge Gas Distribution Inc. and Union Gas Limited have jointly asked the Ontario Energy Board to approve a new framework that, if approved, would be used to set rates for the delivery of natural gas to customers in every year from 2019 to the end of 2028. 

The rates that Enbridge Gas Distribution Inc. and Union Gas Limited currently charge customers for the delivery of natural gas are set using two separate five-year frameworks that will 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. However, in a separate application, Enbridge Gas Distribution Inc. and Union Gas Limited have asked the Ontario Energy Board for approval to amalgamate the two utilities to form a single natural gas distribution, transmission and storage company effective January 1, 2019. As part of that application, which the Ontario Energy Board is reviewing in a separate hearing (EB-2017-0306), the utilities have asked to defer the full review of their costs for 10 years. 

In the current application, the gas utilities have proposed a rate setting framework that would:

  • escalate rates annually based on an index driven by inflation without reductions to account for productivity or for a stretch factor
  • allow the continued recovery of certain routine, pass through costs such as gas commodity, upstream transportation and cap and trade costs
  • allow the recovery of certain non-routine costs provided they are outside of the applicants’ control and exceed a threshold of $1 million

Enbridge Gas Distribution Inc. and Union Gas Limited have also asked for other approvals related to qualifying for incremental capital, adjustments to currently approved revenues and for the continuation of some, and the discontinuation of other deferral and variance accounts.

The above links will take you to our document repository

Submit a letter of comment

You can submit a letter of comment that will be considered by the Board deciding the application. Unless the notice states otherwise, your letter of comment must be received by the Board no later than 60 days after the publication or service date of the notice for the application.

Your letter will be provided directly to the panel of Board members who will be deciding whether the application is approved. The panel will consider your comments in reaching their decision. In reaching its decision, the panel will only be able to consider comments which relate to issues which are within the authority of the Board and relevant to the issues being considered by the panel.

More about commenting and privacy

More about commenting and privacy
All letters of comment sent to the Board are placed on the public record. This means the letters can be seen at our offices and will be placed on our website. Before the letter of comment is placed on the public record, all personal (i.e. not business) contact information is removed, such as the individual's address, fax and phone numbers, and email address. The individual's name and the content of the letter will become part of the public record.

If you would like a response from the applicant, please send a copy of your letter directly to the applicant, including your contact information. The Board removes your contact information from your letter for privacy reasons before it is posted to our website.Show less

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Or mail the below address with the reference number EB-2017-0307

Ontario Energy Board
P.O. Box 2319
2300 Yonge Street, 27th Floor
Toronto ON M4P 1E4
Attn: Ms. Kirsten Walli, Board Secretary