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December 2020

UDPATE – ON: Enbridge files rate order for new charges with Ontario Energy Board

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The CPA continues to closely follow the activities of Enbridge Gas Limited as it seeks Ontario Energy Board (OEB) approval to levy a number of new charges to current and future natural gas customers in Ontario communities.

As members may recall, in October 2020, the OEB approved Enbridge’s application to add a number of new charges to current and future customers. The Board approved the establishment of harmonized charges across all of Enbridge Gas’s rate zones, “to provide a predictable rate and approach to customer payments for expansion projects.” The Board also approved this rate structure for a 40-year maximum period.

At the same time, the OEB ordered Enbridge Gas Inc. to file a draft Rate Order for each zone by November 16, 2020, with intervenors and OEB staff required to submit their comments by November 23, 2020. The OEB circulated Enbridge Gas Inc.’s response to intervenors and OEB staff comments on November 30, 2020. 

In its response, Enbridge disputes arguments made by both OEB staff and intervenors and reasserts their position that they need to levy several new fees for each project in order to meet profitability targets. They also reject proposed revisions to the conditions of service for new customers. 

The OEB has filed this response. The CPA and other stakeholders are awaiting their determination on whether this rate order and conditions of service will become final and apply to all new projects across the province.

The CPA continues to press government and regulators to reject natural gas expansion projects not supported by viable business cases. The CPA also continues to monitor OEB determinations on this file and seek legal counsel opinion on opportunities for intervention. Please continue to provide Ontario Government Relations Director, Marcelline Riddell marcellineriddell@propane.ca with examples of poor marketing practices in natural gas expansion projects in your community.

Enbridge’s response may be accessed here.

 

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