ANNEXE I. Gazifère Inc. Modifications du Tarif 200 avec commentaires Ajustement du coût du gaz

Transcription

1 ANNEXE I Gazifère Inc. Modifications du Tarif 200 avec commentaires Ajustement du coût du gaz Impact on Rate 200 from EB April 1, 2017 QRAM Enbridge Gas Distribution ( EGD ) is proposing the following changes to Rate 200 resulting from its EB QRAM application for rates effective April 1, EGD is forecasting a slight increase in its PGVA reference price to $ /10 3 m 3 for April 1, 2017 EB relative to the $ /10 3 m 3 PGVA reference price embedded in its EB January 1, 2017 rates. Gas Supply Commodity The Rate 200 gas supply commodity charge will decrease from /m 3 from EB to /m 3 in EB for sales service customers. The Rate 200 gas supply commodity charge will decrease from /m 3 from EB to /m 3 in EB for buy/sell service customers. Gas Supply Load Balancing Charge The Gas Supply Load Balancing charge will decrease from EB to EB due to lower load balancing related costs, offset by slightly higher carrying cost of gas in inventory. Transportation Charge The transportation charge will increase from EB to EB as a result of higher transportation related costs. Delivery Charge The Rate 200 delivery charge will increase from EB to EB This is the result of the higher PGVA reference price applied to its Lost and Unaccounted for Gas volumes. Rider C Effective from April 1, 2017 to March 31, 2018 the Rate 200 Rider C unit rate for sales and buy/sell customers is (0.5026) /m³, for Western T-service it is (0.0673) /m³ and for Ontario T-service it is (0.0050) /m³. Original : Page 1 de 1

2 ANNEXE II GAZIFÈRE INC. CALCUL DE L'IMPACT UNITAIRE SUR LES TARIFS RÉSULTANT DE L'AUGMENTATION DU TARIF 200 EB AJUSTEMENT DU COÛT DU GAZ Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8 LINE TARIF TARIF TARIF TARIF TARIF NO. DESCRIPTION TOTAL Gas Supply Decrease ($000) (91.2) (41.0) (47.8) (0.2) 0.0 (2.2) 2 Transportation Increase ($000) Delivery Decrease ($000) (16.0) (7.3) (8.1) (0.0) (0.0) (0.5) 4 Total Increase in Cost of Service ($000) 64.3 VOLUMES 10 3 m Sales 128, , , , Deliveries 169, , , , , Transportation Volumes 164, , , , ,550.3 UNIT RATE IMPACT cents/m Gas Supply Cost (0.07) (0.07) (0.07) (0.07) 0.00 (0.07) 5.2 Transportation Cost Delivery Cost (0.01) (0.01) (0.01) (0.00) 0.00 (0.00) 5 Total Notes: The unit rate impacts by rate class are derived by comparing allocated Rate 200 gas supply, transportation and delivery costs from the current pass-on versus the January 2017 pass-on. The allocation methodology reflects the 2017 Rate Case as filed, Decision to be issued. Line 1 Compares allocated Gas Supply Costs between the January 2017 pass-on and the current pass-on. Line 2 Compares allocated Transportation costs between the January 2017 pass-on and the current pass-on. Line 3 Compares allocated Delivery costs between the January 2017 pass-on and the current pass-on. Line 4 Total change in Cost of Service. Line 4.1 Sales volumes underpinning the 2017 Rate Case from Requête , exhibit GI-20, document 1.2, lines 1, 4, 6 and 8, column 2. Line 4.2 Delivery volumes underpinning the 2017 Rate Case from Requête , exhibit GI-20, document 1, line 25, column 2. Line 4.3 Transportation volumes underpinning the 2017 Rate Case from Requête , exhibit GI-20, document 1, line 25, column 2, less Ontario T-service volumes of lines 10 and 22. Line 5.1 Line 1 divided by Line 4.1 Line 5.2 Line 2 divided by Line 4.1 Line 5.3 Line 3 divided by Line 4.2 Original: Révisé: Page 1 de 1

3 ANNEXE III GAZIFÈRE INC. COÛT DU GAZ SELON LE TARIF 200 EB (1) BASÉ SUR LES VOLUMES DE L'ANNÉE TÉMOIN 2017 AJUSTEMENT DU COÛT DU GAZ Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8 Col. 9 Col. 10 Col. 11 Col. 12 Col m3 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL 1 CONTRACT DEMAND TOTAL DELIVERIES 29, , , , , , , , , , , , ,763.5 (2) 4 TOTAL SALES 24, , , , , , , , , , , , , ONTARIO T-SERVICE RECEIPTS , WESTERN T-SERVICE 3, , , , , , , , , , , , , WESTERN (buy/sell) GAS COST CALCULATION 9 10 RATES EB Demand Charge , Delivery Charge , , Load Balancing , Transportation , , , , , Gas supply (buy/sell) ## Gas supply (system) , , , , , , , Cap and Trade Facility Related Charge CURTAILMENT TOTAL 5, , , , , , , , , , , , , Rider D (24.323) (20.372) (17.675) (10.995) (7.286) (5.674) (5.166) (5.194) (5.191) (9.183) (13.272) (18.891) (143.2) 28 Niagara Gas Transmission , RATES: EB , , , , , , , , , , , , , RATES: EB , , , , , , , , , , , , , Écart entre EB et EB Notes: (1) Coût du gaz total selon le tarif 200 en vigueur le 1er avril (2) Correspond aux volumes d'achat à 37,69 MJ/m³ tel que soumis à la Régie (R , GI-21, document 2.1, page 1 de 1, ligne 5). Original: Page 1 de 1

4 ANNEXE IV GAZIFÈRE INC. COÛT DU GAZ SELON LE TARIF 200 EB (1) BASÉ SUR LES VOLUMES DE L'ANNÉE TÉMOIN 2017 AJUSTEMENT DU COÛT DU GAZ Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8 Col. 9 Col. 10 Col. 11 Col. 12 Col m3 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL 1 CONTRACT DEMAND TOTAL DELIVERIES 29, , , , , , , , , , , , ,763.5 (2) 4 TOTAL SALES 24, , , , , , , , , , , , , ONTARIO T-SERVICE RECEIPTS , WESTERN T-SERVICE 3, , , , , , , , , , , , , WESTERN (buy/sell) GAS COST CALCULATION 9 10 RATES EB Demand Charge , Delivery Charge , , Load Balancing , Transportation , , , , , Gas supply (buy/sell) Gas supply (system) , , , , , , ,901.3 Cap and Trade Facility Related Charge CURTAILMENT TOTAL 5, , , , , , , , , , , , , Rider D (24.323) (20.372) (17.675) (10.995) (7.286) (5.674) (5.166) (5.194) (5.191) (9.183) (13.272) (18.891) (143.2) 27 Niagara Gas Transmission , RATES: EB , , , , , , , , , , , , ,654.7 Notes: (1) Coût du gaz total selon le tarif 200 en vigueur le 1er janvier (2) Correspond aux volumes d'achat à 37,69 MJ/m³ tel que soumis à la Régie (R , GI-21, document 2.1, page 1 de 1, ligne 5). Original: Page 1 de 1

5 ANNEXE V GAZIFÈRE INC. AJUSTEMENT SUBSÉQUENT AUX TARIFS EN VIGUEUR RÉSULTANT DE LA DÉCISION D AJUSTEMENT DU COÛT DU GAZ Interim Rates Proposed Rates ITEM January 1, 2017 Proposed April 1, 2017 NO. DESCRIPTION Pass On Adjustment Pass On Rate 1: col.1 col.2 col.3 1 Monthly Fixed Charge ($) Delivery Charge ( /m³): 2 from 0 to 100 m³ (0.01) from 100 to 320 m³ (0.01) from 320 to 1,000 m³ (0.01) from 1,000 to 3,200 m³ (0.01) from 3,200 to 10,000 m³ (0.01) in excess of 10,000 m³ (0.01) Transportation Charge Gas Supply Charge (0.07) Rate 2: 10 Monthly Fixed Charge ($) Delivery Charge ( /m³): 11 from 0 to 50 m³ (0.01) from 50 to 100 m³ (0.01) from 100 to 320 m³ (0.01) from 320 to 1,000 m³ (0.01) in excess of 1,000 m³ (0.01) Transportation Charge Gas Supply Charge (0.07) Rate 3: 18 Monthly Fixed Charge: ( /m³ of the subscribed volume) Delivery Charge ( /m³): For all volumes delivered 20 Transportation Charge Gas Supply Charge (0.07) Rate 4: 22 Monthly Fixed Charge: ( /m³ of the subscribed volume) Delivery Charge ( /m³): 23 Load factor less or equal to 70% Load factor higher than 70% Transportation Charge Gas Supply Charge (0.07) Original: Révisé: Page 1 de 2

6 ANNEXE V GAZIFÈRE INC. AJUSTEMENT SUBSÉQUENT AUX TARIFS EN VIGUEUR RÉSULTANT DE LA DÉCISION D AJUSTEMENT DU COÛT DU GAZ Interim Rates Proposed Rates ITEM January 1, 2017 Proposed April 1, 2017 NO. DESCRIPTION Pass On Adjustment Pass On col.2 col.3 Rate 5: 27 Monthly Fixed Charge: ( /m³ of the subscribed volume) Delivery Charge ( /m³): 28 For all volumes delivered Transportation Charge Gas Supply Charge (0.07) Rate 6: 31 Monthly Fixed Charge: ( /m³ of the subscribed volume) Delivery Charge ( /m³): 32 Maximum Minimum Transportation Charge Gas Supply Charge (0.07) Rate 7: Monthly Fixed Charge Delivery Charge ( /m³): 36 from 0 to 100 m³ (0.01) from 100 to 320 m³ (0.01) from 320 to 1,000 m³ (0.01) from 1,000 to 3,200 m³ (0.01) from 3,200 to 10,000 m³ (0.01) in excess of 10,000 m³ (0.01) Transportation Charge Gas Supply Charge (0.07) Rate 8: Delivery Charge ( /m³): 44 Maximum Minimum Transportation Charge Gas Supply Charge (0.07) Rate 9: 48 Monthly Fixed Charge: ( /m³ times the maximum daily volume) Delivery Charge ( /m³): 49 from 0 to 1,000,000 m³ in excess of 1,000,000 m³ Transportation Charge Gas Supply Charge (0.07) Original: Révisé: Page 2 de 2

7 ANNEXE VI GAZIFÈRE INC. Autres composantes des tarifs Ajustement du coût du gaz Average Proposed unit rate Unit rate of last block of load balancing of other Line the proposed rate (1) rate (2) components no Description /m 3 /m 3 /m =1+2 1 Billing of the deficiency in minimum annual volume 2 Rate (7.57) Rate 4 4 load factor less or equal to 70% (7.67) load factor higher than 70% (7.67) Rate (6.83) Rate (6.40) Maximum charge on a prorated basis of any annual minimum bill incurred by Gazifère 9 Rate s/o Rate 4 11 load factor less s/o or equal to 70% 12 load factor higher than 70% s/o Rate s/o Rate s/o 7.13 Notes: (1) Average Unit Rate = Last Block of Delivery Charge+ Transportation Charge per the proposed rates included in Annexe V. (2) Unit Load Balancing Rate = (Allocated Load Balancing and Transportation Costs including Return & Taxes by Rate Class)/Volume Original: Révisé: Page 1 de 1

8 ANNEXE VII Gazifère Inc. Taux unitaire et revenus par composante et par tarif Ajustement du coût du gaz January 1, 2017 Pass On April 1, 2017 Pass On Line No. Unit rate Total Unit rate Total Variance cents/m3 $ '000 cents/m3 $ '000 $'000 % (1) Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Rate Gas Supply Commodity , ,626 (41) -1% 1.2 Gas Supply Load Balancing , , % 1.3 Transportation , , % 1.4 Distribution , ,933-0% 1.0 Total , , % Rate Gas Supply Commodity , ,718 (48) -1% 2.2 Gas Supply Load Balancing , , % 2.3 Transportation , , % 2.4 Distribution , ,731-0% 2.0 Total , , % Rate Gas Supply Commodity (0) -1% 3.2 Gas Supply Load Balancing % 3.3 Transportation % 3.4 Distribution % 3.0 Total % Rate Gas Supply Commodity % 4.2 Gas Supply Load Balancing % 4.3 Tranportation % 4.4 Distribution % 4.0 Total , , % Rate Gas Supply Commodity (2) -1% 5.2 Gas Supply Load Balancing % 5.3 Transportation % 5.4 Distribution % 5.0 Total , , % Gazifère Total 6.1 Gas Supply Commodity , ,735 (91) -1% 6.2 Gas Supply Load Balancing , ,906 (16) 0% 6.3 Transportation , , % 6.4 Distribution , ,379-0% 6.0 Total , , % Notes: (1) The % variance depicts the change in the unit rates. Original: Révisé: Page 1 de 1

9 ANNEXE VIII Total Revenue by Component January 2017 vs April 2017 Passon ('000 Dollars) Gas Supply Commodity, Load Balancing & Transportation Distribution January 2017 April 2017 Original: Révisé: Page 1 de 1

10 ANNEXE IX Unit Rate by Component January 2017 vs April 2017 Passon Gas Supply Commodity Gas Supply Load Balancing Transportation Distribution Unit Rate cents/m January April Janaury April January April January April January April Rate 1 Rate 2 Rate 3 Rate 5 Rate 9 Original: Révisé: Page 1 de 1

11 ANNEXE X GAZIFÈRE INC. Rate Rider Summary Sales Western Ontario Service T-Service T-Service Rate Unit Rate (1) Unit Rate (2) Unit Rate (3) ( /m³) ( /m³) ( /m³) Rate 1 (0.51) (0.07) (0.01) Rate 2 (0.51) (0.07) (0.01) Rate 3 (0.50) (0.06) 0.00 Rate 4 (4) (0.50) (0.06) 0.00 Rate 5 (0.50) (0.06) 0.00 Rate 6 (5) (0.50) (0.06) 0.00 Rate 7 (6) (0.51) (0.07) (0.01) Rate 8 (7) (0.50) (0.06) 0.00 Rate 9 (0.50) (0.06) 0.00 Notes: (1) Sum of commodity, transportation and load balancing rider unit rates. (2) Sum of transportation and load balancing rider unit rates. (3) Load balancing rider unit rate. (4) Currently there are no customers taking service under Rate 4. Consequently, Rate 4 rider unit rates are set relative to Rate 3 as a proxy. (5) Currently there are no customers taking service under Rate 6. Consequently, Rate 6 rider unit rates are set relative to Rate 9 as a proxy. (6) Currently there are no customers taking service under Rate 7. Consequently, Rate 7 rider unit rates are set relative to Rate 1 as a proxy. (7) Currently there are no customers taking service under Rate 8. Consequently, Rate 8 rider unit rates are set relative to Rate 9 as a proxy. Original: Page 1 de 4

12 ANNEXE X GAZIFÈRE INC. Commodity Rider by Rate Class Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Item No. Description Total Rate 1 Rate 2 Rate 3 Rate 5 Rate 9 1 Rate 200 Commodity Rider C ( /m 3 ) (1) (0.4353) Gazifère Total Sales Volumes Forecast (m 3 ) (2) 130,621, Total Commodity Rider ($) (3) (568,595.8) Total Sales Volumes Forecast (10 3 m 3 ) (4) 128, , , , $ Allocated (5) (568,595.8) (255,652.8) (297,877.4) (1,474.0) 0.0 (13,591.6) 6 Commodity Rider by Rate Class ( /m 3 ) (6) - (0.44) (0.44) (0.44) 0.00 (0.44) Notes: (1) EB , Rider C, Rate 200, Commodity component. (2) R , GI-21, Document 2, Line 4, Column 13, Revised Novembre 4th, (3) [(Line 1, Column 1) x (Line 2, Column 1)] / 100. (4) R , GI-20, document 1.2, Lines 1, 4, 6 and 8, Column 2, Revised November 4th, (5) (Line 3, Column 1) x [(Volume for each rate from Line 4) / (Line 4, Column 1)]. (6) [ Line 5 / (Line 4 x 1,000)] * 100. Original: Page 2 de 4

13 ANNEXE X GAZIFÈRE INC. Transportation Rider by Rate Class Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Item No. Description Total Rate 1 Rate 2 Rate 3 Rate 5 Rate 9 1 Rate 200 Transportation Rider C ( /m 3 ) (1) (0.0623) Gazifère Total Transportation Volumes Forecast (m 3 )(2) 166,991, Total Transportation Rider ($) (3) (104,035.4) Total Transportation Volumes Forecast (10 3 m 3 ) (4) 164, , , , , $ Allocated (5) (104,035.4) (42,400.4) (42,512.1) (210.3) (10,961.0) (7,951.6) 6 Transportation Rider by Rate Class ( /m 3 ) (6) - (0.06) (0.06) (0.06) (0.06) (0.06) Notes: (1) EB , Rider C, Rate 200, Transportation component. (2) R , GI-21, Document 2, Line 4, Column 13 + Line 6, Column 13 + Line 7, Column 13, Revised November 4th, (3) [(Line 1, Column 1) x (Line 2, Column 1)] / 100. (4) R , GI-20, Document 1.2, Column 2: Line 1 + Line 2 + Line 4 + Line 5 + Line 6 + Line 7 + Line 8 + Line 9. (5) (Line 3, Column 1) x [(Volume for each rate from Line 4) / (Line 4, Column 1)]. (6) [ Line 5 / (Line 4 x 1,000)] * 100. Original: Page 3 de 4

14 ANNEXE X GAZIFÈRE INC. Load Balancing Rider by Rate Class Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Item No. Description Total Rate 1 Rate 2 Rate 3 Rate 5 Rate 9 1 Rate 200 Load Balancing Rider C ( /m 3 ) (1) (0.0050) Gazifère Total Annual Deliveries Forecast (m 3 ) (2) 172,763, Total Load Balancing Rider ($) (3) (8,638.2) Load Balancing: 4 Peak (20%) ($) (4) (1,727.6) Seasonal (80%) ($) (5) (6,910.5) Total ($) (6) (8,638.2) Total Delivery Volumes Forecast (10 3 m 3 ) (7) 169, , , , ,485.1 Gazifère Load Balancing Factors: 8 Peak % Allocation 100.0% 46.8% 52.5% 0.0% 0.7% 0.0% 9 Seasonal % Allocation 100.0% 45.0% 50.1% 0.1% 0.0% 4.7% $ Allocated: 10 Load Balancing - Peak ($) (8) (1,727.6) (808.5) (907.6) (0.4) (11.2) Load Balancing - Seasonal ($) (9) (6,910.5) (3,110.8) (3,465.3) (6.4) 0.0 (328.2) 12 Total $ Allocated (10) (8,638.2) (3,919.2) (4,372.8) (6.7) (11.2) (328.2) 13 Load Balancing Rider by Rate Class ( /m 3 ) (11) - (0.01) (0.01) Notes: (1) EB , Rider C, Rate 200, Load Balancing component. (2) R , GI-21, Document 2, Line 3, Column 13, Revised November 4th, (3) [(Line 1, Column 1) x (Line 2, Column 1)] / 100. (4) (Line 3, Column 1) x 20% as filed in 2017 Rate Case, as filed, please refer to exhibit GI-31, document 2.7, page 2 of 2, Revised November 4th, 2016: ( line 1.3, column 4) / [(line 1.3, column 3) + (line 1.3, column 4)]. (5) (Line 3, Column 1) x 80% as filed in 2017 Rate Case, as filed, please refer to exhibit GI-31, document 2.7, Revised November 4th, 2016: ( line 1.3, column 3) / [(line 1.3, column 3) + (line 1.3, column 4)]. (6) (Line 4, Column 1) + (Line 5, Column 1). (7) R , GI-20, Document 1, Line 25, Column 2. (8) (Line 4, Column 1) x (% Peak allocation for each rate from Line 8). (9) (Line 5, Column 1) x (% Seasonal allocation for each rate from Line 9). (10) Line 10 + Line 11. (11) [ Line 5 / (Line 4 x 1,000)] * 100. Original: Page 4 de 4

15 ANNEXE XI Gazifère Inc. Cavalier tarifaire Crédit carbone Le prix unitaire établi à $/tonne pour l année 2017 est multiplié par le volume budgété de l année 2017 excluant les grands émetteurs, soit tonnes ( m 3 ) pour un total de $. À ce montant, Gazifère a ajouté lors de l ajustement tarifaire de janvier 2017des frais financiers estimés à $ pour l année de 2017 et les intérêts comptabilisés dans le compte de frais reportés SPEDE pour la période du 1 er juillet 2016 au 30 septembre 2016 de $, pour un grand total de $, tel que présenté au tableau 1. Pour l ajustement tarifaire d avril 2017, Gazifère intègre les intérêts comptabilisés dans le compte de frais reportés - SPEDE de l année 2016 pour la période s échelonnant du 1 er octobre 2016 au 31 décembre 2016, au montant de ,07 $, tel que démontré dans le tableau qui suit. Intérêts compte CFR - SPEDE 2016 Octobre Novembre Décembre Total $ $ $ ,07 $ Ainsi, le taux unitaire du cavalier tarifaire SPEDE pour le deuxième trimestre de 2017 est fixé à 3,64 cents/m 3, tel que présenté au tableau 2. 1 Le nombre de crédits découlant du budget 2017 est légèrement différent de la prévision initiale, ce qui explique l écart de 740 tonnes entre les achats et la prévision. Cela n a pas d effet sur le taux, puisque l on utilise le montant par tonne pour le déterminer et non pas le coût des achats divisé par un nombre différent. Le surplus de crédits carbone représente une réserve pour l année 2017 et sera réévaluée en fin d année, avec les résultats réels de l année Original : Page 1 de 3

16 ANNEXE XI GAZIFÈRE INC CALCUL DU CAVALIER TARIFAIRE CRÉDIT CARBONE 2017 Q2- TABLE 1 Actual Purchase True-Up Col. 1 Col. 2 Col. 3 Item No. Price ($/Ton) Emission Allowances (Tons) $ 1.1 Budget Purchases for ,001 (1) 5,172,514 (2) Q3 Interest 30,134 (3) 1 Total for 2017Q1 Rider 5,202,648 (4) Actual Purchases Q ,001 5,164,514 (5) Q Q Q4 Variance Q Q Q Q4 10 Variance on Actual Purchases 275,001 0 Outstanding Purchases Update At Current Price (6) 0 (5) 12 Previous Quarter Price (6) 0 (5) 13 Purchases 0 (7) Q4 Interest 13,155 (8) 15 Total for 2017 Q1 Rider 5,215,803 (10) Notes: (1) Projected number of emission allowances required (2) 2017Q1, Table 2, Col. 4, Line 1.1 (3) 2017Q1, Table 2, Col. 4, Line 2 (4) Line Line 1.2 (5) Col. 1 x Col. 2 (6) Line 1 - Line 10 (7) Line 11 - Line 12 (9) Q4 interest of the 2016 deferral account (9) Line 1 + Line 10 + Line 13 + Line 14 Original: Page 2 de 3

17 ANNEXE XI GAZIFÈRE INC CALCUL DU CAVALIER TARIFAIRE CRÉDIT CARBONE 2017 Q2 - TABLE 2 Spede Rider Col. 4 Col. 5 Col. 6 $ Budget Volume (1000 m 3 ) Unit Rate ( /m 3 ) Variance for 2017 Q2 Rate Adjustment 13,155 (10) 143,155 Total Variance for Q2 Rate Adjustment 13,155 (11) 143,155 (12) 0.01 (13) Spede Rider 2017 Q (14) 2017 Q (15) 2017 Q Q4 Notes: (10) Table 1, Line 15 - Line 1 (11) Col. 4, Line 1.1 (12) 2017 Budget Delivery Volume, R , GI-20, document 1.2, total volumes excluding large emitters. (13) (Col. 4 / Col. 5) / 10 (14) 2017Q1, Table 2, Col. 6, Line 6 (15) Col. 6, Line 1 + Line 2 Original: Page 3 de 3

18 ANNEXE XII Enbridge Gas Distribution's documents - Lettre de transmission de la demande d'ajustement des tarifs à la Commission de l'énergie de l'ontario (OEB) - Application to the OEB for Rate Adjustment - Quaterly Rate Adjustment Mechanism - Rate Rider A, B, C & D - Rate Rider Summary / April 2017 Original: Pages

19 Andrew Mandyam Director, Regulatory Affairs, Financial Planning and Analysis tel fax Enbridge Gas Distribution 500 Consumers Road North York, Ontario M2J 1P8 Canada VIA RESS, and COURIER March 10, 2017 Ms. Kirsten Walli Board Secretary Ontario Energy Board 2300 Yonge Street, 27 th Floor Toronto, Ontario M4P 1E4 Dear Ms. Walli: Re: EB (QRAM Application) Today, we are filing one electronic copy of the Application of Enbridge Gas Distribution Inc. ( Enbridge ) in Word and PDF formats, and two paper copies of the Application with the supporting evidence (binder format) by courier, requesting an order approving or fixing rates for the sale, distribution, storage, and transmission of gas effective April 1, The Board approved the original Quarterly Rate Adjustment Mechanism ( QRAM ) process, and subsequent modifications in the following proceedings, RP , RP and RP On September 21, 2009, the Board issued its Decision in the QRAM Generic Proceeding under docket number EB This Application and the supporting evidence were both prepared in accordance with the process for Enbridge s QRAM and the EB Decision. A description of the QRAM process is attached to this Application as Appendix A. Enbridge is concurrently serving an electronic copy of the Application with supporting evidence in PDF format, or a hard copy (binder format) by courier, if requested, on the interested parties listed in Appendix B to this Application. The following is the proposed procedural schedule for processing the Application, according to the prescribed regulatory framework for the QRAM process: Any responsive comments from interested parties must be filed with the Board, and served on Enbridge and the other interested parties, on or before March 15, Any reply comments from Enbridge must be filed with the Board, and served on all interested parties, on or before March 17, 2017.

20 March 10, 2017 Ms. Walli Page 2 The Board would thereafter issue an order approving the applied-for rate adjustments, or modifying them as required, effective April 1, Enbridge requests the Board to issue such an order on or before March 23, Enbridge would then be able to implement the resultant rates during Enbridge s first billing cycle in April The prescribed procedures for processing cost claims are as follows: Due to the mechanistic nature of the QRAM application, the Board does not anticipate awarding costs. Parties that meet the eligibility criteria contained in the Board s Practice Direction on Cost Awards may submit costs with supporting rationale as to how their participation contributed to the Board s ability to decide on this matter. Any party eligible for an award of costs must file a claim with the Board and Enbridge no later than ten days from the date of the Board s decision and order. Should Enbridge have any comments concerning any of the claims, these concerns shall be forwarded to the Board and to the claimant within seven days of receiving the claims. Any response to Enbridge s comments must be filed with the Board and Enbridge within seven days of receiving the comments. Yours truly, [original signed] Andrew Mandyam Director, Regulatory Affairs Encl. cc: Mr. Fred Cass, Aird & Berlis LLP All Interested Parties EB

21 Filed: EB Exhibit Q2-1 Tab 2 Schedule 1 Page 1 of 5 ONTARIO ENERGY BOARD IN THE MATTER OF the Ontario Energy Board Act, 1998, S.O. 1998, c. 15, Sched. B, as amended. AND IN THE MATTER OF an Application by Enbridge Gas Distribution Inc. for an Order approving or fixing rates for the sale, distribution, storage, and transmission of gas effective April 1, APPLICATION FOR RATE ADJUSTMENT Gas Costs Second Quarter - Test Year 2017 Introduction 1. Enbridge Gas Distribution Inc. ("Enbridge") hereby applies to the Board for an order approving or fixing rates for the sale, distribution, storage, and transmission of gas effective April 1, This Application is made pursuant to, and the order would be issued under, section 36 of the Ontario Energy Board Act, 1998, as amended. 2. This Application and the supporting evidence were prepared in accordance with the process for Enbridge's Quarterly Rate Adjustment Mechanism ("QRAM"). The Board approved the original QRAM process, and subsequent modifications, in the following proceedings: RP : The QRAM process was prescribed, under Issue 2.2, in the "Settlement Proposal (Main Case)" dated May 11, 2001; see Exhibit N2, Tab 1, Schedule 1, pp of 54. The Board approved the entire Settlement Proposal on May 30, 2001; see transcript volume no. 1, pp

22 Filed: EB Exhibit Q2-1 Tab 2 Schedule 1 Page 2 of 5 RP : The QRAM process was modified, under Issue 4.2, in the Settlement Proposal dated March 14, 2003; see Exhibit N1, Tab 1, Schedule 1, pp of 93. The Board approved the entire Settlement Proposal on March 20, 2003; see transcript volume 1, para RP : The QRAM process was modified, under Issue in the Settlement Proposal dated June 17, 2004, Exhibit N1, Tab 1, Schedule 1, pp of 59. The Board approved the entire Settlement Proposal on June 16, 2003; see transcript volume 1, paragraphs. 32 to 39. EB : The QRAM process was modified in the Board s Decision dated September 21, 2009 at pages 5, 16 and The particulars of the QRAM process are described, for ease of reference, in Appendix A to this Application. Pursuant to the Board s direction, the Regulatory Framework has further been modified to include procedures for processing cost claims and awards, if any. Utility Price and Customer Impacts 4. Enbridge s adjusted utility price from EB is $ /10 3 m MJ/m 3 ). Enbridge has recalculated the utility price for the second quarter of Test Year 2017 using the prescribed methodology reflecting a higher utility cost. The recalculated utility price is $ /10 3 m MJ/m 3 ). 5. The resultant rates would increase the total bill (including cap and trade charges) for a typical residential customer on system gas by $0.52 or 0.1% (approx.) annually and, for a typical residential customer on direct purchase, would increase the total bill by $2.21 or 0.3% (approx.) annually.

23 Filed: EB Exhibit Q2-1 Tab 2 Schedule 1 Page 3 of 5 PGVA 6. The new PGVA rider methodology adopted by the Company in its January 1, 2010 QRAM filing allows it to make adjustments through rate riders for variances in commodity, transportation and load balancing costs for all bundled customers. 7. Effective from April 1, 2017 to March 31, 2018 the Rider C unit rate for residential customers on sales service is (0.4762) /m³, for Western T-service it is (0.0748) /m³ and for Ontario T-service it is (0.0125) /m³. Regulatory Framework 8. The QRAM process includes the regulatory framework for interested parties as well as the Board and its staff to examine the Application with the supporting evidence and, thereafter, for the Board to issue an order disposing of the Application. Enbridge's list of interested parties is presented in Appendix B; the list includes the name(s) of the parties and their respective representative(s). 9. The following is the prescribed regulatory framework for processing the Application: Any responsive comments from interested parties are filed with the Board, and served to Enbridge and the other interested parties, on or before March 15, Any reply comments from Enbridge are filed with the Board, and served on all interested parties, on or before March 17, The Board thereafter issues an order approving the applicable rate adjustments or modifying them as required, effective April 1, Enbridge requests that the Board issue such an order on or before March 23, 2017 (if possible). Enbridge would then be able to implement the resultant rates during the first billing cycle in April.

24 Filed: EB Exhibit Q2-1 Tab 2 Schedule 1 Page 4 of The following procedures are prescribed for cost claims for QRAM applications, as directed by the Board on February 14, 2007: Due to the mechanistic nature of the QRAM application, the Board does not anticipate awarding costs. Parties that meet the eligibility criteria contained in the Board s Practice Direction on Cost Awards may submit costs with supporting rationale as to how their participation contributed to the Board s ability to decide on this matter. Any party eligible for an award of costs must file a claim with the Board and Enbridge no later than ten days from the date of the Board s decision and order. Should Enbridge have any comments concerning any of the claims, these concerns shall be forwarded to the Board and to the claimant within seven days of receiving the claims. Any response to Enbridge s comments must be filed with the Board and Enbridge within seven days of receiving the comments. 12. Enbridge also requests that all documents in relation to the Application and its supporting evidence, including the responsive comments of any interested party, be served on Enbridge and its counsel as follows: (1) Mr. Andrew Mandyam Director, Regulatory Affairs, Financial Planning and Analysis Telephone: Fax: Electronic access: (416) (416) egdregulatoryproceedings@enbridge.com (2) Ms. Tania Persad Senior Legal Counsel, Regulatory Telephone: Fax: Electronic access: (416) (416) tania.persad@enbridge.com

25 Filed: EB Exhibit Q2-1 Tab 2 Schedule 1 Page 5 of 5 Address for personal service: Mailing address: Enbridge Gas Distribution Inc. 500 Consumers Road Willowdale, Ontario M2J 1P8 P.O. Box 650 Scarborough, Ontario M1K 5E3 DATE: March 10, 2017 ENBRIDGE GAS DISTRIBUTION INC. [original signed] Per: Andrew Mandyam Director, Regulatory Affairs

26 Filed: EB Exhibit Q2-1 Tab 2 Schedule 1 Appendix A Page 1 of 6 QUARTERLY RATE ADJUSTMENT MECHANISM Introduction 1. The QRAM process approved by the Board for Enbridge now comprises the following components: the calculation of a forecast price for ratemaking purposes during a test year ("utility price"); the means of adjusting the utility price for rate-making purposes during a test year; the means of calculating and clearing variances recorded in Enbridge's Purchased Gas Variance Account ("PGVA"); the regulatory framework for approving adjustments and clearances; and the means of providing pricing information to end-use customers, or their marketers, and to other stakeholders as well. 2. The QRAM process is intended to achieve or accommodate the following eight principles: Utility Price more reflective of market prices on an ongoing basis; enhanced price transparency; regular quarterly review process; customer awareness, customer acceptance, and less confusion in the marketplace; mitigation of large adjustments of customer bills; fairness and equity among all customer groups; implementation in a cost effective manner: and reduced regulatory burden relative to the former "trigger methodology", and the related rate adjustment mechanism, for Enbridge's PGVA. 3. Enbridge calculates the utility price for a test year by using its Boardapproved methodology to develop a forecast of its supply (i.e., commodity) costs, including buy/sell as well as system gas, and its transportation costs for the test year. The forecast of supply costs includes the forecast price of natural gas based on a so-called "21-day strip. 4. This 21-day strip represents the simple average of future market prices, as reported by various media and other services, over a 21-day period for a basket of pricing periods, pricing points, and pricing indices that reflects

27 Filed: EB Exhibit Q2-1 Tab 2 Schedule 1 Appendix A Page 2 of 6 Enbridge's gas purchase arrangements, both actual and anticipated, during the 12 months subsequent to the 21-day period. 5. Enbridge uses the initial utility price as the basis for calculating the gas supply charges for Sales service, subject to subsequent adjustment(s), during a test year. Sales service is provided to buy/sell gas customers, who are direct purchasers, as well as to system gas customers. Enbridge also uses the initial utility price for PGVA purposes. Price Adjustment 6. Enbridge recalculates the utility price, using the same methodology, for each of the subsequent three quarters of the test year. The forecast of the price of natural gas, in each case, is based on a 21-day strip. The last day of each 21-day strip precedes the quarter in question by no more than 31 days. 7. Whenever a recalculated utility price comes into effect at the beginning of a quarter, Enbridge calculates the consequential effect of this price on the following commodity-related costs: carrying costs of gas in storage, working cash allowance (gas costs), unbilled and unaccounted for gas, company-use gas, and lost and unaccounted for gas (storage). Enbridge then uses the recalculated utility price, together with the consequential effect on these commodity-related costs, as the basis for adjusting the revenue requirement for a test year and, in turn, the gas supply charges for sales service, transportation charges for Sales and Western T-service, and the delivery charges and gas supply load balancing charges (when discrete) for distribution service, effective as of the beginning of the quarter. Enbridge also begins to use the recalculated utility price for PGVA purposes on the same effective date. 8. The following provisions apply when adjusting the revenue requirement for a test year: (a) (b) The volumetric forecast of Sales service, Western T-service and Ontario T-service is Enbridge's as-filed forecast for the test year, as updated (if any), until there is a Board-approved forecast. The latter is the volumetric forecast thereafter. The capital structure for rate base and rate of return purposes is Enbridge's as-filed capital structure for the test year, as updated (if

28 Filed: EB Exhibit Q2-1 Tab 2 Schedule 1 Appendix A Page 3 of 6 any), until there is a Board-approved capital structure. The latter is the capital structure thereafter. (c) The cost of equity for rate of return purposes is the Board-approved rate of return on equity ("ROE") for the prior test year, notwithstanding Enbridge's as-filed ROE, until there is a Boardapproved ROE for the test year. The latter is the cost of equity thereafter. PGVA 9. Enbridge records in the PGVA the product derived by multiplying the volumes delivered during each month of a test year by the variances between the utility price in effect and Enbridge's actual purchased gas costs per unit during each month of a test year. 10. Enbridge shall use the AECO index plus Nova transportation plus fuel costs as the benchmark in calculating the components of the PGVA. 11. Whenever a recalculated utility price comes into effect at the beginning of a quarter, the opening balance of gas in storage is adjusted at the same time in order to reflect the recalculated utility price. The resultant debits or credits, as the case may be, are recorded in the PGVA as commodityrelated entries. 12. For the purpose of developing rate riders (i.e. Rider C unit rates) for clearance of the PGVA balance, Enbridge identifies the balances / amounts attributable to commodity, transportation and load balancing components of the PGVA. 13. Each quarter, Enbridge forecasts the balances / amounts attributable to commodity, transportation and load balancing components of the PGVA for the following 12 month period. Enbridge also records variances reflecting the difference between what was forecast to be recovered in the previous quarter from rate riders and what was actually recovered. These variances are included in the establishment of the rate rider unit rates for the next 12 month period. As a result, Enbridge updates quarterly its rate rider unit rates to reflect the updated forecast of PGVA balances and the historical recovery variance.

29 Filed: EB Exhibit Q2-1 Tab 2 Schedule 1 Appendix A Page 4 of Based on the amounts attributable to commodity, transportation and load balancing components of the PGVA, individual riders are determined and applied to Sales service, Western T-service and Ontario T-service. The unit rates are derived based on the 12 month test year forecast of volumes (i.e. 12-month rolling rider methodology). The rate riders (i.e. Rider C unit rates) become effective at the beginning of the quarter and specify, by rate class, the unit rates for Sales, Western T-service and Ontario T-service customers. 15. Whenever there is a change in upstream transportation tolls during a quarter, Enbridge records the consequential effect of the change in the PGVA. Enbridge also adjusts the transportation charge for all Sales and Western T-service customers at the beginning of the next quarter, in order to account for the consequential effect of the changes in upstream transportation tolls. Regulatory Framework (Including Cost Awards) 16. Enbridge maintains and updates, from time to time, a list of interested parties for the purposes of the QRAM process; for example, serving documents filed with the Board. An "interested party" is Board staff, an intervenor in Enbridge's most recent rates proceeding, and any other stakeholder in Enbridge's franchise area who advises Enbridge of its interest in the QRAM process. The list of interested parties includes the name of each interested party and, as each of them indicates, the name(s) of their respective representative(s) and any limitation(s) on service (e.g., application only). Enbridge also maintains and updates the address(es) for service of each such representative. 17. Each quarter, Enbridge files a corresponding application and supporting evidence with the Board, and serves one or both on each interested party's representative(s), no fewer than 19 calendar days prior to the quarter in question. The application seeks approval of the applicable utility price for PGVA purposes, the corresponding gas supply charges for sales service, the corresponding transportation charge for Sales and Western T-service and delivery charges and gas supply load balancing charges (when discrete) for distribution service, and the rate rider to be used to clear the PGVA balance. The application will include an executive summary of the application in a tabular format or otherwise.

30 Filed: EB Exhibit Q2-1 Tab 2 Schedule 1 Appendix A Page 5 of Interested parties may file with the Board, and serve on Enbridge and the other interested parties, comments in response to each application. The deadline for filing and serving responsive comments is five calendar days after Enbridge files and serves its application. Enbridge may file with the Board, and serve on the interested parties, comments in reply to any responsive comments. The deadline for reply comments is two calendar days after the interested parties file and serve their respective responsive comments. 19. The Board thereafter issues an order, prior to the quarter in question if possible, approving the applicable utility price for PGVA purposes, the corresponding gas supply charges for sales service, the corresponding gas distribution, transportation and load balancing charges (when discrete) for distribution service, and the rate rider to be used to clear PGVA, or modifying them as required, effective as of the beginning of the quarter. 20. Due to the mechanistic nature of the QRAM application, the Board does not anticipate awarding costs. Parties that meet the Board eligibility criteria contained in the Board s Practice Direction on Cost Awards may submit costs with supporting rationale as to how their participation contributed to the Board s ability to decide on this matter. 21. Any party eligible for an award of costs must file a claim with the Board and Enbridge no later than ten days from the date of the Board s decision and order. Should Enbridge have any comments concerning any of the claims, these concerns shall be forwarded to the Board and to the claimant within seven days of receiving the claims. Any response to Enbridge s comments must be filed with the Board and Enbridge within seven days of receiving the comments. Pricing Information 22. Enbridge's monthly bill displays the gas supply charges for Sales service and the rate rider (if any) in effect for the month, and the total of the two when there is a rate rider, expressed in /m 3 in each case. Enbridge ensures that customers are given a clear explanation, by means of a message on the bill or a bill insert, of the pricing information displayed on the bill and, whenever the pricing information changes, of the significance of the changes.

31 Filed: EB Exhibit Q2-1 Tab 2 Schedule 1 Appendix A Page 6 of Enbridge posts on its website, promptly after receiving the Board s order in this regard, information on the gas supply charges for Sales service and the rate rider (if any), and the total of the two when there is a rate rider, expressed in /m 3 in each case. Enbridge provides on its website a meaningful description of the posted information so as to inform customers of its significance, in plain language, and of the significance of changes in the posted information whenever change occurs. 24. Enbridge s website provides links to other websites, such as energyshop.com, that provide prices and other information on competitive gas services in Enbridge's franchise area. 25. Enbridge also makes similar information available, through an additional branch, on Enbridge s Curtailment and Buy/Sell Information Line on a timely basis.

32 RATE NUMBER: APPLICABILITY: 200 WHOLESALE SERVICE To any Distributor who enters into a Service Contract with the Company to use the Company's natural gas distribution network for the transportation of an annual supply of natural gas to customers outside of the Company's franchise area. CHARACTER OF SERVICE: Service shall be continuous (firm), except for events as specified in the Service Contract including force majeure, up to the contracted firm daily demand and subject to curtailment or discontinuance, of demand in excess of the firm contract demand, upon the Company issuing a notice not less than 4 hours prior to the time at which such curtailment or discontinuance is to commence. RATE: Rates per cubic metre assume an energy content of MJ/m³. Billing Month January to December Monthly Customer Charge The monthly customer charge shall be negotiated with the applicant and shall not exceed: $2, Delivery Charge Per cubic metre of Firm Contract Demand Per cubic metre of gas delivered Gas Supply Load Balancing Charge /m³ /m³ /m³ Transportation Charge per cubic metre (If applicable) /m³ Transportation Dawn Charge per cubic metre (If applicable) /m³ System Sales Gas Supply Charge per cubic metre (If applicable) /m³ Buy/Sell Sales Gas Supply Charge per cubic metre (If applicable) /m³ Cap and Trade Customer Related Charge (If applicable) Cap and Trade Facility Related Charge /m³ /m³ The rates quoted above shall be subject to the Gas Inventory Adjustment contained in Rider "C" and the Revenue Adjustment Rider contained in Rider "E". Also, meter readings will be adjusted by the Atmospheric Pressure Factor relevant to the customer's location as shown in Rider "F". The Gas Supply Charge is applicable to volumes of natural gas purchased from the Company. The volumes purchased shall be the volumes delivered at the Point of Delivery less any volumes, which the Company does not own and are received at the Point of Acceptance for delivery to the Applicant at the Point of Delivery. DIRECT PURCHASE ARRANGEMENTS: Rider "A" or Rider "B" shall be applicable to Applicants who enter into Direct Purchase Arrangements under this Rate Schedule. CURTAILMENT CREDIT: Rate for 4 hours of notice per cubic metre of Mean Daily Volume from December to March $ 1.10 /m³ EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: Page 1 of 2 April 1, 2017 April 1, 2017 EB January 1, 2017 Handbook 32