Significant Win for the Propane Industry
The CPA participated in the
OEB’s process that began in December 2015 to establish principles to guide the
recovery of costs associated with expanding natural gas services.
The OEB decision, released
Thursday, November 17, ensures that the true cost of the energy supply is
reflected in pricing. It furthermore helps to ensure that propane
businesses can continue to employ local workers across Ontario’s communities.
Propane businesses could have been severely impacted if subsidies were
provided to trucked LNG.
The CPA had argued that if
propane delivery trucks can operate without a subsidy, then LNG delivery trucks
should also be able to operate without a subsidy. The OEB agreed with the CPA,
stating in its decision: "The assessment of the economics of the use of natural
gas in a community should include the discrete upstream costs incurred to
provide for the delivery of the gas. This holds true whether the costs pertain
to pipes, trucks or liquefaction processes."
In its news release regarding the decision, the CPA encouraged Ontario energy consumers, municipalities and First Nation
communities who are paying high electricity costs to contact their local
propane retailer to discuss ways they can help reduce their energy costs.
The CPA works hard on members’ behalf to represent the interests of the
propane industry. This OEB decision is a significant win for CPA members. For more information, please visit the OEB website.