Home Business Enbridge Gas wants to ‘harmonize’ its four Ontario rate zones

Enbridge Gas wants to ‘harmonize’ its four Ontario rate zones

by News Desk
0 comment

By establishing a single rate zone, the company says it will be able to treat customers across Ontario at the same rate for the same service.

THUNDER BAY — Enbridge Gas is proposing several changes to its Ontario operations, including merging the Northwest Ontario zone with the province’s three other regional rate zones.

According to customer notices, unifying rate zones will have little impact on typical customer invoices.

However, the notice asks Enbridge to initiate a regulatory process (rebasing) that will lead to changes to natural gas distribution, transportation and storage rates as of January 2024 with Ontario Energy’s board of directors. I am also notifying you that

A spokesperson told TBnewswatch that the impact on customer bills has been mixed, with some residential customers across the state paying up to 13% less and others paying up to 8% more.

For customers in the Northwest, these changes will result in a modest $65 annual bill savings for most residential customers and an even more significant $1,222 savings for general commercial customers, according to the notice. shown.

There are no rate changes related to rebasing before 2024, but we still expect the next standard quarterly rate adjustment in January 2023.

Recently, natural gas prices in northwestern Ontario rose 6.2% in the three-month period beginning October 2nd.

Enbridge also submitted a plan to the OEB to harmonize four rate zones and establish new rate classes and a common suite of services statewide.

External communications manager Andrea Stas said that since Union Gas and Enbridge merged in 2019, many systems and services have been harmonized “for a consistent and simplified customer experience.” Told.

She said Enbridge is proposing further adjustments and simplifications to its rates and services in the 2025-2026 phase to better reflect the operation of a single company.

“This will allow Enbridge Gas to treat customers across Ontario the same and apply the same rates for the same service wherever they are. This will result in a one-time change across current rate zones. We will have to do that,” said Stass. He said.

Information provided in the announcement indicates that tariff harmonization will result in an increase of up to 1% for most residential and commercial customers as of April 2025, while the impact on some other customer classes will be 3%. range from decreasing to . It will increase by 5% in April 2026.

Similarly, Enbridge is applying for approval of its Incentive Rate Making Mechanism (IRM) for the period 2025-2028.

IRM applies a formula that includes inflation and other terms to determine rates.

This is the first cost-based tariff application for Embridge Gas since the OEB approved the merger of Embridge Gas and Union Gas in 2019.

The Energy Commission will hold public hearings on the company’s proposals.

Anyone can apply to join the board by December 2nd.

You may also like

Leave a Comment

Copyright ©️ All rights reserved. | Canadian Trends