ANNEXE I Gazifère Inc. Modifications du Tarif 200 avec commentaires Ajustement du coût du gaz Gazifère’s January 1, 2010 Rates On December 4, 2009, Gazifère filed its Rates reflecting the impact on distribution, load balancing, transportation and commodity rates resulting from the decision D-2009-151. These rates are effective January 1, 2010 and reflect October 1, 2009 gas costs. Gazifère has used these rates as the starting point for its January 1, 2010 Pass-on rates. Gazifère has generated the change in gas costs from the October 1, 2009 Rate 200 relative to the proposed January 1, 2010 Rate 200. This change in costs and rates has been applied to the Rates resulting from the decision D-2009-151. Therefore, the January 1, 2010 Pass-on rates reflect the impacts of the Régie’s decision D-2009-151 and the January 1, 2010 gas costs. Gazifère is proposing to implement these rates on January 1, 2010. Impact on Rate 200 from EB-2009-0398 – January 1, 2010 QRAM Enbridge Gas Distribution is proposing the following changes to Rate 200 resulting from its EB-2009-0398 QRAM application for rates effective January 1, 2010. Enbridge is forecasting an increase in its PGVA reference price of $241.685/103m3 for EB2009-0398 effective January 1, 2010 relative to $236.950/103m3 embedded in its EB-20090309 effective October 1, 2009 rates. Gas Supply Commodity The Rate 200 gas supply commodity charge will increase from 19.6846 cents/m3 from EB2009-0309 effective October 1, 2009 to 19.7920 cents/m3 from EB-2009-0398 effective January 1, 2010 for sales service customers. The Rate 200 gas supply commodity charge will increase from 19.6668 cents/m3 from EB2009-0309 effective October 1, 2009 to 19.7743 cents/m3 from EB-2009-0398 effective January 1, 2010 for buy/sell service customers. Gas Supply Load Balancing Charge From EB-2009-0309 effective October 1, 2009 to EB-2009-0398 effective January 1, 2010, the Gas Supply Load Balancing charge will decrease. This is the result of higher carrying cost of gas in inventory offset by lower load balancing related costs. Transportation Charge From EB-2009-0309 effective October 1, 2009 to EB-2009-0398 effective January 1, 2010, the Transportation Charge has increased due to higher overall transportation related costs driven primarily from an increase in TransCanada PipeLines tolls effective January 1, 2010. Original : 2009-12-14 Page 1 de 2 ANNEXE I Gazifère Inc. Modifications du Tarif 200 avec commentaires Ajustement du coût du gaz Delivery Charge From EB-2009-0309 effective October 1, 2009 to EB-2009-0398 effective January 1, 2010, the Delivery charge will increase. This is the result of the higher PGVA reference price from October 1, 2009 to January 1, 2010 applied to its Lost and Unaccounted for Gas volumes. Rider C The 2010 PGVA balance results in a sales service credit for Rate 200. Effective from January 1, 2010 to March 31, 2010, a credit of 7.1447 cents/m3 will be applied to Rate 200 sales and buy/sell service volumes. Adjustment for 2008 Deferral Account Clearing Enbridge Gas Distribution has notified the Ontario Energy Board (see copy of letters attached) of its intent to clear its 2008 Deferral and Variance Account balances as part of its April 1, 2010 QRAM application. At that time, Gazifère will receive a total debit charge of approximately $258,000 (plus interest). Original : 2009-12-14 Page 2 de 2 ANNEXE II GAZIFÈRE INC. CALCUL DE L'IMPACT UNITAIRE SUR LES TARIFS RÉSULTANT DE L'AUGMENTATION DU TARIF 200 EB-2009-0398 AJUSTEMENT DU COÛT DU GAZ LINE NO. DESCRIPTION Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8 TOTAL TARIF 1 TARIF 2 TARIF 3 TARIF 5 TARIF 9 1 Gas Supply Cost increase $ '000 126.5 52.03 73.98 0.47 0.00 0.00 2 Transportation Cost increase $ '000 787.0 323.75 460.32 2.93 0.00 0.00 3 Delivery Cost increase $ '000 6.7 2.57 2.92 0.03 0.71 0.48 4 Total increase in cost of service $ '000 4.1 4.2 3 3 VOLUMES 10 m Sales Deliveries 117,803.4 153,361.2 48,460.8 58,788.0 68,903.6 69,079.2 439.0 439.0 0.0 14,181.0 0.0 10,874.0 5.1 5.2 5.3 UNIT RATE IMPACT cents/m 3 Gas Supply Cost Transportation Cost Delivery Cost 0.11 0.67 0.00 0.11 0.67 0.00 0.11 0.67 0.00 0.11 0.67 0.01 0.11 0.67 0.01 0.11 0.67 0.00 920.2 Notes: The unit rate impacts by rate class are derived by comparing allocated Rate 200 gas supply and delivery costs from the current versus the previous pass-on. The allocation methodology reflects the Régie's Decision D-2006-58 from the 2006 rate case (R-3587-2005). Line 1 Compares allocated gas costs between the previous pass-on and the current pass-on. Line 2 Compares allocated transportation costs between the previous pass-on and the current pass-on. Line 3 Compares allocated delivery costs between the previous pass-on and the current pass-on. Total change in Cost of Service as referenced in Annexe III, Line 32, column 13. Line 4 Line 4.1 Sales volumes underpinning the Régie's Decision D-2009-151 (see Requête 3692-2009, GI-24, document 1, page 1of 1, lines 3,4,5,8,10,12,15 and 18, column 2). Line 4.2 Delivery volumes underpinning the Régie's Decision D-2009-151 (see Requête 3692-2009, GI-24, document 1, page 1 of 1, line 23, column 2). 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. The unit rate equal zero due to rounding from four digits to two digits in exhibit. Original: 2009-12-14 Page 1 de 1 ANNEXE III GAZIFÈRE INC. COÛT DU GAZ SELON LE TARIF 200 EB-2009-0398 (1) BASÉ SUR LES VOLUMES DE L'ANNÉE TÉMOIN 2010 AJUSTEMENT DU COÛT DU GAZ 1000 m3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CONTRACT DEMAND Col. 1 JAN 1103.1 TOTAL DELIVERIES TOTAL SALES T-SERVICE RECEIPTS Col. 2 FEB 1103.1 Col. 3 MAR 1103.1 Col. 4 APR 1103.1 Col. 5 MAY 1103.1 Col. 6 JUN 1103.1 Col. 7 JUL 1103.1 Col. 8 AUG 1103.1 Col. 9 SEP 1103.1 Col. 10 OCT 1103.1 Col. 11 NOV 1103.1 Col. 12 DEC Col. 13 TOTAL 1103.1 24,476.1 20,870.7 3,605.4 23,836.8 20,359.4 3,477.4 20,519.3 16,958.7 3,560.6 14,662.3 11,535.1 3,127.2 8,561.4 5,798.3 2,763.1 6,128.3 3,777.0 2,351.3 5,580.9 3,243.9 2,337.0 5,794.9 3,170.7 2,624.3 5,472.3 3,125.0 2,347.3 8,029.5 5,177.4 2,852.1 12,568.1 9,413.9 3,154.3 19,631.8 16,085.3 3,546.6 155,261.8 (2) 119,515.3 35,746.5 GAS COST CALCULATION RATES EB-2009-0398 Demand Charge Delivery Charge 14.7000 1.0646 162,156 260,573 422,728 162,156 253,766 415,922 162,156 218,448 380,604 162,156 156,095 318,250 162,156 91,145 253,300 162,156 65,242 227,398 162,156 59,414 221,570 162,156 61,693 223,849 162,156 58,258 220,414 162,156 85,482 247,638 162,156 133,801 295,956 162,156 209,000 371,156 1,945.9 1,652.9 3,598.8 Load Balancing Transportation Gas supply (buy/sell) Gas supply (system) CURTAILMENT 0.4821 4.6868 19.7743 19.7920 -1.1000 117,999 978,170 82,541 4,048,121 114,917 954,205 80,519 3,948,946 98,923 794,818 67,069 3,289,328 70,687 540,627 45,620 2,237,365 41,275 271,754 22,931 1,124,644 29,545 177,021 14,938 732,595 26,906 152,035 12,829 629,190 27,937 148,603 12,540 614,989 26,382 146,461 12,359 606,126 38,710 242,655 20,476 1,004,220 60,591 441,210 37,231 1,825,932 94,645 753,884 63,615 3,119,921 748.5 5,601.4 472.7 23,181.4 TOTAL 5,649,559 5,514,509 4,630,742 3,212,549 1,713,904 1,181,497 1,042,530 1,027,918 1,011,741 1,553,699 2,660,920 4,403,221 33,602.8 Niagara Gas Transmission RATES: EB-2009-0398 118,483 5,768,042 118,483 5,632,992 118,483 4,749,225 118,483 3,331,032 118,483 1,832,387 118,483 1,299,980 118,483 1,161,013 118,483 1,146,401 118,483 1,130,224 118,483 1,672,182 118,483 2,779,403 118,483 4,521,704 1,421.8 35,024.6 29 30 RATES: EB-2009-0309 5,607,334 5,476,221 4,618,644 3,242,215 1,787,749 1,270,904 1,136,043 1,121,996 1,106,171 1,632,325 2,706,922 4,397,849 34,104.4 31 32 Écart entre EB-2009-0398 et EB-2009-0309 920.2 Notes: (1) Coût du gaz total selon le tarif 200 en vigueur le 1er janvier 2010. (2) Correspond aux volumes d'achat à 37,69 MJ/m³ tel qu'approuvés par la Régie dans sa décision D-2009-151 ( Voir R-3692-2009, GI-28, document 2.1, page 1 de 1, ligne 6, révisé le 25 septembre 2009). Original: 2009-12-14 Page 1 de 1 ANNEXE IV GAZIFÈRE INC. COÛT DU GAZ SELON LE TARIF 200 EB-2009-0309 (1) BASÉ SUR LES VOLUMES DE L'ANNÉE TÉMOIN 2010 AJUSTEMENT DU COÛT DU GAZ 1000 m3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CONTRACT DEMAND Col. 1 JAN 1103.1 TOTAL DELIVERIES TOTAL SALES T-SERVICE RECEIPTS Col. 2 FEB 1103.1 Col. 3 MAR 1103.1 Col. 4 APR 1103.1 Col. 5 MAY 1103.1 Col. 6 JUN 1103.1 Col. 7 JUL 1103.1 Col. 8 AUG 1103.1 Col. 9 SEP 1103.1 Col. 10 OCT 1103.1 Col. 11 NOV 1103.1 Col. 12 DEC Col. 13 TOTAL 1103.1 24,476.1 20,870.7 3,605.4 23,836.8 20,359.4 3,477.4 20,519.3 16,958.7 3,560.6 14,662.3 11,535.1 3,127.2 8,561.4 5,798.3 2,763.1 6,128.3 3,777.0 2,351.3 5,580.9 3,243.9 2,337.0 5,794.9 3,170.7 2,624.3 5,472.3 3,125.0 2,347.3 8,029.5 5,177.4 2,852.1 12,568.1 9,413.9 3,154.3 19,631.8 16,085.3 3,546.6 155,261.8 (2) 119,515.3 35,746.5 GAS COST CALCULATION RATES EB-2009-0309 Demand Charge Delivery Charge 14.7000 1.0606 162,156 259,594 421,749 162,156 252,813 414,969 162,156 217,627 379,783 162,156 155,508 317,664 162,156 90,802 252,958 162,156 64,997 227,153 162,156 59,191 221,347 162,156 61,461 223,617 162,156 58,039 220,195 162,156 85,161 247,316 162,156 133,298 295,453 162,156 208,215 370,371 1,945.9 1,646.7 3,592.6 Load Balancing Transportation Gas supply (buy/sell) Gas supply (system) CURTAILMENT 0.4866 4.0236 19.6668 19.6846 -1.1000 119,101 839,755 82,092 4,026,154 115,990 819,182 80,081 3,927,517 99,847 682,348 66,704 3,271,478 71,347 464,126 45,372 2,225,224 41,660 233,300 22,807 1,118,541 29,820 151,972 14,856 728,620 27,157 130,521 12,759 625,776 28,198 127,575 12,471 611,652 26,628 125,737 12,292 602,836 39,071 208,319 20,365 998,771 61,157 378,777 37,028 1,816,024 95,528 647,206 63,269 3,102,991 755.5 4,808.8 470.1 23,055.6 TOTAL 5,488,851 5,357,738 4,500,161 3,123,732 1,669,266 1,152,421 1,017,560 1,003,513 987,688 1,513,842 2,588,439 4,279,366 32,682.6 EB-2009-0309 118,483 5,607,334 118,483 5,476,221 118,483 4,618,644 118,483 3,242,215 118,483 1,787,749 118,483 1,270,904 118,483 1,136,043 118,483 1,121,996 118,483 1,106,171 118,483 1,632,325 118,483 2,706,922 118,483 4,397,849 1,421.8 34,104.4 Niagara Gas Transmission RATES: Notes: (1) Coût du gaz total selon le tarif 200 en vigueur le 1er octobre 2009. (2) Correspond aux volumes d'achat à 37,69 MJ/m³ tel qu'approuvés par la Régie dans sa décision D-2009-151 ( Voir R-3692-2009, GI-28, document 2.1, page 1 de 1, ligne 6, révisé le 25 septembre 2009). Original: 2009-12-14 Page 1 de 1 ANNEXE VI GAZIFÈRE INC. Autres composantes des tarifs Ajustement du coût du gaz Line no Description Average unit rate of last block of the proposed rate (1) 3 ¢/m 1 1 Billing of the deficiency in minimum annual volume 2 Rate 3 3 Rate 4 4 5 Unit load balancing rate (2) ¢/m 3 Proposed rate of other components ¢/m 3 2 3=1+2 13.46 (6.30) 7.16 load factor less or equal to 70% 11.57 (6.59) 4.98 load factor higher than 70% 10.52 (6.59) 3.93 6 Rate 5 8.06 (6.21) 1.85 7 Rate 9 6.82 (5.65) 1.17 8 Maximum charge on a prorated basis of any annual minimum bill incurred by Gazifère 9 Rate 3 13.46 s/o 13.46 10 Rate 4 11 load factor less or equal to 70% 11.57 s/o 11.57 12 load factor higher than 70% 10.52 s/o 10.52 13 Rate 5 8.06 s/o 8.06 14 Rate 9 6.82 s/o 6.82 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: 2009-12-14 Page 1 de 1 ANNEXE VII Gazifère Inc. Taux unitaire et revenus par composante et par tarif Ajustement du coût du gaz January 1st, 2010 with October 09 rate 200 D-2009-151 Line No. Unit rate cents/m3 Col. 1 Total $ '000 Col. 2 January 1st, 2010 Pass-on Unit rate cents/m3 Col. 3 Total $ '000 Col. 4 Variance %(1) $'000 Col. 5 Col. 6 Rate 1 1.1 1.2 1.3 1.4 1.0 Gas Supply Commodity Gas Supply Load Balancing Transportation Distribution Total 19.91 4.05 4.05 12.18 40.19 9,650 2,379 1,964 7,158 21,151 20.02 4.05 4.72 12.18 40.97 9,702 2,382 2,288 7,158 21,530 52 3 324 378 1% 0% 16% 0% 2% 19.91 4.70 4.05 21.48 50.14 13,720 3,245 2,793 14,835 34,594 20.02 4.70 4.72 21.48 50.92 13,794 3,248 3,253 14,835 35,131 74 3 460 537 1% 0% 16% 0% 2% 19.91 1.69 4.05 8.06 33.72 87 7 18 35 148 20.02 1.70 4.72 8.06 34.50 88 7 21 35 151 0 0 3 1% 0% 16% 0% 2% 19.91 1.17 4.05 3.41 28.55 166 484 650 20.02 1.18 4.72 3.41 29.33 166 484 651 - 19.91 0.69 4.05 3.34 27.99 75 363 438 20.02 0.69 4.72 3.34 28.77 - - 363 438 19.91 3.83 4.05 14.92 42.71 23,458 5,872 4,775 22,876 56,980 20.02 3.83 4.72 14.92 43.49 23,584 5,879 5,562 22,876 57,900 Rate 2 2.1 2.2 2.3 2.4 2.0 Gas Supply Commodity Gas Supply Load Balancing Transportation Distribution Total Rate 3 3.1 3.2 3.3 3.4 3.0 Gas Supply Commodity Gas Supply Load Balancing Transportation Distribution Total 3 Rate 5 4.1 4.2 4.3 4.4 4.0 Gas Supply Commodity Gas Supply Load Balancing Tranportation Distribution Total 1 1 1% 0% 16% 0% 3% Rate 9 5.1 5.2 5.3 5.4 5.0 Gas Supply Commodity Gas Supply Load Balancing Transportation Distribution Total 0 1% 1% 16% 0% 3% 127 7 787 920 1% 0% 16% 0% 2% 75 0 - Gazifère Total 6.1 6.2 6.3 6.4 6.0 Gas Supply Commodity Gas Supply Load Balancing Transportation Distribution Total Notes: (1) The % variance depicts the change in the unit rates. Original: 2009-12-14 Page 1 de 3 ANNEXE VIII Gazifère Inc. Revenus totaux par composantes Tarif du 1er janvier 2010 versus tarif du 1er octobre 2009 Ajustement du coût du gaz ('000 Dollars) 40000 30000 20000 10000 0 October 09 January 10 Gas Supply Commodity, Load Balancing & Transportation Distribution Original: 2009-12-14 Page 2 de 3 ANNEXE IX Gazifère Inc. Taux unitaire par composante Tarif du 1er janver 2010 versus tarif du 1er octobre 2009 Ajustement du coût du gaz 55 50 45 Gas Supply Commodity Gas Supply Load Balancing Transportation Distribution 40 Unit Rate cents/m3 35 30 25 20 15 10 5 0 1 Oct 09 Jan Passon 2 Rate 1 Original: 2009-12-14 Oct309 4 Jan Passon Rate 2 Oct 5 09 6 Jan Passon Rate 3 7 09 Oct 8 Jan Passon Rate 5 Oct 9 09 10 Jan Passon 11 12 Rate 9 Page 3 de 3 ANNEXE X GAZIFÈRE INC. ANNEXE AJUSTEMENT DU COÛT DU GAZ AJUSTEMENT DU COÛT DU GAZ ANNEXE AJUSTEMENT DU COÛT DU GAZ Le présent ajustement du coût du gaz s’applique à tous les volumes de gaz vendus ou livrés durant la période du 1er janvier 2010 au 31 mars 2010. Tarifs Service de vente et service achat / revente (¢/m3) Service de transport (¢/m3) 1à9 (7,18) 0,00 Note: (1) Voir "Rider C - Gas Cost Adjustment Rider " à la page 54 du "Rate Handbook" de Enbridge Gas Distribution, requête EB-2009-0398. Le montant de (7,1447) ¢/m³ a été ajusté pour la valeur calorifique. Original: 2009-12-14 Page 1 de 1 ANNEXE XI 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 200 - Rider A, B, C & E - EB-2009-0055 (2008 Deferral and variance Accounts) Original: 2009-12-14 28 Pages 500 Consumers Road North York, ON M2J 1P8 PO Box 650 Scarborough ON M1 K 5E3 Norm Ryckman Director, Regulatory Affairs Tel 416-753-6280 Fax 416-495-6072 Email norm.ryckman@enbridge.com VIA COURIER AND EMAIL December 11 , 2009 Ms. Kirsten Walli Board Secretary Ontario Energy Board 2300 Yonge Street Toronto, Ontario M4P 1E4 Dear Ms. Walli: Re: EB-2009-0398 (QRAM Application) I am hereby filing with you one electronic copy of the Application of Enbridge Gas Distribution Inc. ("Enbridge") in Word and PDF formats, and 2 copies of the Application with the supporting evidence (binder format) by courier, for an order approving or fixing interim rates for the sale, distribution, storage, and transmission of gas effective January 1,2010. The Board approved the original Quarterly Rate Adjustment Mechanism ("QRAM") process, and subsequent modifications in the following proceedings, RP-2000-0040, RP-2002-0133 and RP-2003-0203. On September 21, 2009, the Board issued its decision in the QRAM Generic Proceeding under docket number EB-2008-0106. This Application and the supporting evidence were both prepared in accordance with the process for Enbridge's QRAM and the EB-2008-0106 decision. A description of the QRAM process is attached to the 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 December 16, 2009. 2009-12-11 Ms. Walli Page 2 • Any reply comments from Enbridge must be filed with the Board, and served on all interested parties, on or before December 18, 2009. • The Board would thereafter issue an order approving the applied-for rate adjustments, or modifying them as required, effective January 1, 2010. Enbridge requests the Board to issue such an order on or before December 22, 2009. Enbridge would then be able to implement the resultant rates during Enbridge's first billing cycle in January 2010. 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, rraf~ Norm Ryckman Director, Regulatory Affairs Encl. cc: Mr. Fred Cass, Aird & Berlis LLP All Interested Parties EB-2008-0219 and EB-2009-0172 Filed: 2009-12-11 EB-2009-0398 Exhibit Q1-1 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 January 1, 2010. APPLICATION FOR RATE ADJUSTMENT Gas Costs First Quarter - Test Year 2010 Introduction 1. Enbridge Gas Distribution Inc. ("Enbridge") hereby applies to the Board for an order approving or fixing interim rates for the sale, distribution, storage, and transmission of gas effective January 1, 2010. 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-2000-0040: 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. 13-18 of 54. The Board approved the entire Settlement Proposal on May 30, 2001; see transcript volume no. 1, pp. 107-9. • RP-2002-0133: 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. 21-25 of 93. The Board approved the entire Settlement Proposal on March 20, 2003; see transcript volume 1, para. 687. Filed: 2009-12-11 EB-2009-0398 Exhibit Q1-1 Tab 2 Schedule 1 Page 2 of 5 • RP-2003-0203: The QRAM process was modified, under Issue 15.11 in the Settlement Proposal dated June 17, 2004, Exhibit N1, Tab 1, Schedule 1, pp. 56-58 of 59. The Board approved the entire Settlement Proposal on June 16, 2003; see transcript volume 1, paragraphs. 32 to 39. • EB-2008-0106: The QRAM process was modified in the Board’s Decision dated September 21, 2009 at pages 5, 16 and 22. 3. 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 utility price during the fourth quarter of Test Year 2009 was $236.950/103m3 ($6.287/GJ @ 37.69 MJ/m3). Enbridge has recalculated the utility price for the first quarter of Test Year 2010 using the prescribed methodology, reflecting a higher commodity cost and higher tolls for TransCanada PipeLines. The recalculated utility price is $241.685/103m3 ($6.412/GJ @ 37.69 MJ/m3). 5. The resultant rates would increase the total bill for a typical residential customer on system gas by $23 or 2.0% (approx.) annually and, for a typical residential customer on direct purchase, would increase the total bill by $20 or 3.5% (approx.) annually. PGVA 6. Enbridge’s existing Rider C unit rates for customers on sales service will continue to be in effect until March 31, 2010. The unit rates and extended clearing period to March 31, 2010 for Rider C was approved in the EB-20090309 (October 1, 2009 QRAM) Decision. For residential customers on sales service the unit rate is a credit of (6.9075) cents / m3 7. For the first quarter of 2010, Enbridge has re-valued its gas in inventory to reflect the recalculated utility price of $241.685/103m3. For example, the adjusted gas in inventory balance in the PGVA, when translated into ¢/m3 based on forecast volumes for the 12 months of Test Year 2010, is a credit of (0.1474) cents / m3 for residential customers on sales service. 8. For billing purposes, the re-valued gas in inventory unit rate of (0.1474) cents / m3 will be combined with the existing unit rate of (6.9075) cents/ m3 Filed: 2009-12-11 EB-2009-0398 Exhibit Q1-1 Tab 2 Schedule 1 Page 3 of 5 resulting in a Rider C unit rate of ($7.0549) cents/ m3 applicable to residential customers on sales service. The combined Rider C unit rates will be effective from January 1, 2010 to March 31, 2010. On March 31, 2010 the existing rider unit rate of (6.9075) cents/ m3 will terminate. Regulatory Framework 9. 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). 10. The following is the prescribed regulatory framework for processing the Application: • Any responsive comments from interested parties are filed with the Board, and served on Enbridge and the other interested parties, on or before December 16, 2009. • Any reply comments from Enbridge are filed with the Board, and served on all interested parties, on or before December 18, 2009. • The Board thereafter issues an order approving the applicable rate adjustments or modifying them as required, effective January 1, 2010. 11. Enbridge requests that the Board issue such an order on or before December 22, 2009. Enbridge would then be able to implement the resultant rates during the first billing cycle in January 2010. 12. 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 Filed: 2009-12-11 EB-2009-0398 Exhibit Q1-1 Tab 2 Schedule 1 Page 4 of 5 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. 13. 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. Norm Ryckman Director, Regulatory Affairs Telephone: Fax: Electronic access: (416) 495-5499 (416) 495-6072 egdregulatoryproceedigns@enbridge.com (2) Ms. Tania Persad Senior Legal Counsel, Regulatory Telephone: Fax: Electronic access: (416) 495-5891 (416) 495-5994 tania.persad@enbridge.com Address for personal service: Enbridge Gas Distribution Inc. 500 Consumers Road Willowdale, Ontario M2J 1P8 Mailing address: P.O. Box 650 Scarborough, Ontario M1K 5E3 Filed: 2009-12-11 EB-2009-0398 Exhibit Q1-1 Tab 2 Schedule 1 Page 5 of 5 DATE: December 11, 2009 ENBRIDGE GAS DISTRIBUTION INC. Per: -----=-------=~::....--_-+---+-----Norm Ryckman Director, Regulatory Affairs Filed: 2009-12-11 EB-2009-0398 Exhibit Q1-1 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: • • • • • • • • 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. Utility Price 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 Filed: 2009-12-11 EB-2009-0398 Exhibit Q1-1 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) 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. (b) 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 Filed: 2009-12-11 EB-2009-0398 Exhibit Q1-1 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. Filed: 2009-12-11 EB-2009-0398 Exhibit Q1-1 Tab 2 Schedule 1 Appendix A Page 4 of 6 14. 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. 18. Interested parties may file with the Board, and serve on Enbridge and the other interested parties, comments in response to each application. The Filed: 2009-12-11 EB-2009-0398 Exhibit Q1-1 Tab 2 Schedule 1 Appendix A Page 5 of 6 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 ¢/m3 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. 23. 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, Filed: 2009-12-11 EB-2009-0398 Exhibit Q1-1 Tab 2 Schedule 1 Appendix A Page 6 of 6 expressed in ¢/m3 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. RATE NUMBER: 200 WHOLESALE SERVICE APPLICABILITY: 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 37.69 MJ/m³. Billing Month January to December Monthly Customer Charge The monthly customer charge shall be negotiated with the applicant and shall not exceed: $2,000.00 Delivery Charge Per cubic metre of Firm Contract Demand Per cubic metre of gas delivered 14.7000 ¢/m³ 1.0646 ¢/m³ Gas Supply Load Balancing Charge 0.4821 ¢/m³ Transportation Charge per cubic metre 4.6868 ¢/m³ System Sales Gas Supply Charge per cubic metre (If applicable) Buy/Sell Sales Gas Supply Charge per cubic metre (If applicable) 19.7920 ¢/m³ 19.7743 ¢/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 EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2010 January 1, 2010 EB-2009-0398 October 1, 2009 $ 1.10 /m³ Page 1 of 2 Handbook 31 RATE NUMBER: 200 In addition, if the Applicant is supplying its own gas requirements, the gas delivered by the Applicant during the period of curtailment shall be purchased by the Company for the Company's use. The purchase price for such gas will be equal to the price that is reported for the month, in the first issue of the Natural Gas Market Report published by Canadian Enerdata Ltd. during the month, as the "current" "Avg." (i.e., average) "Alberta One-Month Firm Spot Price" for "AECO 'C' and Nova Inventory Transfer" in the table entitled "Domestic spot gas prices", adjusted for AECO to Empress transportation tolls and compressor fuel costs. For the areas specified in Appendix A to this Rate Schedule, the Company's gas distribution network does not have sufficient physical capacity under current operating conditions to accommodate the provision of firm service to existing interruptible locations. UNAUTHORIZED OVERRUN GAS RATE: When the Applicant takes Unauthorized Supply Overrun Gas, the Applicant shall purchase such gas at a rate of 150% of the average price on each day on which an overrun occurred for the calendar month as published in the Gas Daily for the Niagara and Iroquois export points for the CDA and EDA respectively. On the second and subsequent occasion in a contract year when the Applicant takes Unauthorized Demand Overrun Gas, a new Contract Demand will be established and shall be charged equal to 120% of the applicable monthly charge for twelve months of the current contract term, including retroactively based on the terms of the Service Contract. The third instance of such failure in any contract year may result in the Applicant forfeiting the right to be served under this Rate Schedule. In such case service hereunder would cease, notwithstanding any Service Contract between the Company and the Applicant. Gas supply and/or transportation service would continue to be available to the Applicant pursuant to the provisions of the Company's Rate 6 until a Service Contract pursuant to another applicable Rate Schedule was executed. MINIMUM BILL: Per cubic metre of Annual Volume Deficiency (See Terms and Conditions of Service): 6.1817 ¢/m³ TERMS AND CONDITIONS OF SERVICE: The provisions of PARTS III and IV of the Company's HANDBOOK OF RATES AND DISTRIBUTION SERVICES apply, as contemplated therein, to service under this Rate Schedule. EFFECTIVE DATE: To apply to bills rendered for gas consumed by customers on and after January 1, 2010 under Sales Service including Buy/Sell Arrangements and Transportation Service. This rate schedule is effective January 1, 2010 and replaces the numbered rate schedule that specifies as the effective date, October 1, 2009 and that indicates as the Board Order, EB-2009-0309. EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2010 January 1, 2010 EB-2009-0398 October 1, 2009 Page 2 of 2 Handbook 32 RIDER: A TRANSPORTATION SERVICE RIDER APPLICABILITY: This rider is applicable to any Applicant who enters into Gas Transportation Agreement with the Company under any rate other than Rates 125 and 300. MONTHLY DIRECT PURCHASE ADMINISTRATION CHARGE: Base Charge Maximum Charge $50.00 per month $815.00 per month Account Charge New Accounts Renewal Accounts $0.50 per month per account $0.15 per month per account The above Basic Charge shall be increased up to the maximum charge, by the new account charge for each new account and by the Renewal Account charge for each renewal account in a Direct Purchase Contract. AVERAGE COST OF TRANSPORTATION: The average cost of transportation effective January 1, 2010: Firm Transportation (FT) Point of Acceptance CDA, EDA 4.6868 ¢/m³ TCPL FT CAPACITY TURNBACK: APPLICABILITY: To Ontario T-Service customers who have been or will be assigned TCPL capacity by the Company. TERMS AND CONDITIONS OF SERVICE: 1. The Company will accommodate TCPL FT capacity turnback from customers to the extent that the Company is allowed to turnback FT capacity to TCPL. 2. The Company will accommodate all TCPL FT capacity turnback requests in a manner that minimizes stranded and other transitional costs. The Company is committed to maintaining the integrity of its distribution system and the sanctity of all contracts. 3. The Company may amend any contracts to accommodate a customer's request to turnback capacity. 4. Notice of TCPL FT turnback capacity will be accepted on Enbridge's Election for Enbridge Firm Transportation Assignment form or other authorized written notice. 5. The daily contractual right to receive natural gas would still be subject to the delivery, on a firm basis, of the full Mean Daily Volume into the Company's Central Delivery Area (CDA) and/or Eastern Delivery Area (EDA). The delivery area must match the area in which consumption will occur. EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2010 January 1, 2010 EB-2009-0398 October 1, 2009 Page 1 of 2 Handbook 51 RIDER: A 6. The proportion of TCPL FT capacity that an eligible customer may request to be turned back each year ("percentage turnback") shall not exceed the proportion of the TCPL capacity that Enbridge is entitled to turn back that year. This percentage turnback will be applied to calculate the customer's turnback capacity limit based on the renewal volume of the direct purchase agreement. 7. If the Company is unable to accommodate all or a portion of an eligible customer's request to turnback TCPL FT capacity in the month requested by the customer, the Company will indicate the month(s) when such customer request can be fully satisfied and the costs, if any, associated with accommodating this request. The customer may then advise the Company as to whether or not they wish to proceed with the TCPL FT capacity turnback request. 8. All TCPL FT capacity turnback requests will be treated on an equitable basis. 9. Customers may withdraw their original election given they provide notice to the Company a minimum of one week prior to the deadline specified in the TransCanada tariff for FT contract extension. 10. The percentage turnback of TCPL FT capacity will be applied at the Direct Purchase Agreement level. 11. Written notice to turnback capacity must be received by the Company the earlier of: (a) Sixty days prior to the expiry date of the current contract. or (b) A minimum of one week prior to the deadline specified in TransCanada tariff for FT contract extension. EFFECTIVE DATE: To apply to bills rendered for gas delivered on and after January 1, 2010. This rate schedule is effective January 1, 2010 and replaces the identically numbered rate schedule that specifies implementation date, October 1, 2009 and that indicates, as the Board Order, EB-2009-0309. EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2010 January 1, 2010 EB-2009-0398 October 1, 2009 Page 2 of 2 Handbook 52 RIDER: B BUY / SELL SERVICE RIDER APPLICABILITY: This rider is applicable to any Applicant who entered into a Gas Purchase Agreement with the Company, prior to April 1, 1999, to sell to the Company a supply of natural gas. MONTHLY DIRECT PURCHASE ADMINISTRATION CHARGE: Base Charge Maximum Charge $50.00 per month $815.00 per month Account Charge New Accounts Renewal Accounts $0.50 per month per account $0.15 per month per account The above Basic Charge shall be increased up to the maximum charge, by the new account charge for each new account and by the Renewal Account charge for each renewal account in a Direct Purchase Contract. BUY / SELL PRICE: In Buy/Sell Arrangements between the Company and an Applicant, the Company shall buy the Applicants gas at the Company's actual FT-WACOG price determined on a monthly basis in the manner approved by the Ontario Energy Board. For Western Buy/Sell arrangements the FT-WACOG price shall be reduced by pipeline transmission costs. FT FUEL PRICE: The FT fuel price used to establish the Buy price in Western Buy/Sell arrangements without fuel will be determined monthly based upon the actual FT-WACOG. EFFECTIVE DATE: To apply to bills rendered for gas delivered on and after January 1, 2010. This rate schedule is effective January 1, 2010 and replaces the identically numbered rate schedule that specifies implementation date, October 1, 2009 and that indicates, as the Board Order, EB-2009-0309. EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2010 January 1, 2010 EB-2009-0398 October 1, 2009 Page 1 of 1 Handbook 53 RIDER: C GAS COST ADJUSTMENT RIDER The following adjustment is applicable to all gas sold or delivered during the period of January 1, 2010 to March 31, 2010. Rate Class Sales Service ( ¢/m³ ) Western Ontario Transportation Service Transportation Service ( ¢/m³ ) ( ¢/m³ ) Rate 1 (7.0549) 0.0000 0.0000 Rate 6 (7.0477) 0.0000 0.0000 Rate 9 (9.8943) 0.0000 0.0000 Rate 100 0.0000 0.0000 0.0000 Rate 110 (9.3690) 0.0000 0.0000 Rate 115 (9.1768) 0.0000 0.0000 Rate 135 (9.9386) 0.0000 0.0000 Rate 145 (7.9678) 0.0000 0.0000 Rate 170 (8.6531) 0.0000 0.0000 Rate 200 (7.1447) 0.0000 0.0000 EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2010 January 1, 2010 EB-2009-0398 October 1, 2009 Page 1 of 1 Handbook 54 RIDER: E REVENUE ADJUSTMENT RIDER The following adjustment shall be applicable to volumes during the period January 1, 2009 to December 31, 2009. Rate Class Sales Service ( ¢/m³ ) Transportation Service ( ¢/m³ ) Rate 1 0.0000 0.0000 Rate 6 0.0000 0.0000 Rate 9 0.0000 0.0000 Rate 100 0.0000 0.0000 Rate 110 0.0000 0.0000 Rate 115 0.0000 0.0000 Rate 135 0.0000 0.0000 Rate 145 0.0000 0.0000 Rate 170 0.0000 0.0000 Rate 200 0.0000 0.0000 Rate 300 n/a EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2010 January 1, 2010 EB-2009-0398 October 1, 2009 - Page 1 of 1 Handbook 56 500 Consumers Road North York, ON M2J 1P8 PO Box 650 Scarborough ON M1K 5E3 Norm Ryckman Director, Regulatory Affairs Tel 416-753-6280 Fax 416-495-6072 Email norm.ryckman@enbridge.com VIA COURIER AND EMAIL December 11, 2009 Ms. Kirsten Walli Board Secretary Ontario Energy Board 2300 Yonge Street Toronto, Ontario M4P 1E4 Dear Ms. Walli: Re: EB-2009-0055 (2008 Deferral and Variance Accounts) In its Decision and Order in EB-2009-0055, the Ontario Energy Board approved the balances in Enbridge Gas Distribution Inc.'s 2008 Deferral and Variance Accounts, and ordered Enbridge to clear those balances in two equal instalments during the October 2009 and November 2009 billing cycles. By way of a letter dated September 2, 2009, Enbridge requested that the Board's Order be varied to allow Enbridge to clear the Deferral and Variance Account balances in 2010. As explained in this letter (a copy of which is attached), Enbridge proposed that the clearance of the Accounts occur at the earliest opportunity upon stabilization of the Company's new Customer Information System (CIS). The Board received submissions regarding the request to vary the EB-2009-0055 Order and, on September 17, 2009, it issued a further Order (copy attached) which requires Enbridge to report, no later than the time of filing of its January 1, 2010 QRAM application, on the advisability and proposed timing of the clearance of the Deferral and Variance Accounts. At this time, circumstances remain as described in the attached letter of September 2r.d. In order to facilitate the early operations of the new CIS, Enbridge has concluded that is it not advisable to proceed with the clearance of the Deferral and Variance Accounts in conjunction with the January, 1, 2010 2009-12-11 Ms. Walli Page 2 QRAM. Enbridge now anticipates that clearance will coincide with the April 1, 2010 QRAM. The balances will be cleared to customers in two equal monthly instalments. Yours truly, ferf!L~L Norm Ryckman Director, Regulatory Affairs cc: Mr. Fred Cass, Aird & Berlis LLP All Interested Parties EB-2008-0219/EB-2009-0172 500 Consumers Road North York, ON M2J 1P8 PO Box 650 Scarborough ON M1 K 5E3 Norm Ryckman Director, Regulatory Affairs Tel 416-753-6280 Fax 416-495-6072 Email norm.ryckman@enbridge.com VIA COURIER AND EMAIL September 2, 2009 Ms. Kirsten Walli Board Secretary Ontario Energy Board 2300 Yonge Street Toronto, Ontario M4P 1E4 Dear Ms. Walli: Re: EB-2009-0055 (2008 Deferral and Variance Accounts) and EB-2009-0309 (QRAM Application) In its Decision and Order in EB-2009-0055, the Ontario Energy Board (the "OEB", or the "Board") approved the balances in Enbridge Gas Distribution Inc.'s 2008 Deferral and Variance Accounts, and ordered Enbridge to clear those balances in two equal installments during the October 2009 and November 2009 billing cycles. The Board ordered that this clearance will coincide with Enbridge's October 1, 2009 QRAM. For the reasons set out below, Enbridge respectfully requests that the Board's Order be varied to allow and direct Enbridge to clear the balances in its 2008 Deferral and Variance Accounts in 2010. The Company is in the process of implementing its new Customer Information System ("CIS") in September of 2009. This is a significant undertaking that is the culmination of approximately two years of extensive effort. Enbridge is pleased to confirm that billing using the new CIS will commence as of mid-September. Naturally, the Company wants to ensure that the switch-over of its customers to the new billing system is as smooth as possible and that adequate time and resources are dedicated to address problems should they arise. To this end, the parties most closely involved with the implementation of the new CIS (which include TMG Consulting, Sapient Canada and Enbridge's own steering committee) have recommended that steps be taken to avoid the potential complications that could arise from additional billing activities during the first several months of operation. Those parties have specifically identified the collection of 2008 deferral and variance account balances as an activity that should be avoided in the early operations of the new CIS and have 2009-09-02 MS.Walii Page 2 recommended that this be delayed. Unlike the gas cost adjustment (Le., QRAM adjustment) which is applied to customer bills on a forward looking basis, clearance of the 2008 deferral and variance accounts relies on historic consumption data and therefore requires additional processes and steps in order to facilitate collection of the amounts from customers. The recommendation to delay clearance of the 2008 deferral and variance accounts did not arise until an August 31 sl meeting of the parties involved in the CIS implementation. Since that time, Enbridge has taken prompt action to amend its October 1 QRAM Application and formulate this request. In these circumstances, Enbridge requests, pursuant to Part VII of the Board's Rules of Practice and Procedure, that the Board review and vary its Decision and Order in EB-2009-0055. Specifically, Enbridge requests that the Board vary paragraphs 2 and 3 of its Order in EB-2009-0055, so that they read as follows: 2) The clearance of the deferral and variance accounts will occur at the earliest opportunity upon stabilization of the new CIS. Currently it is anticipated that collection will coincide with the January 1, 2010 QRAM. The balances will be cleared to customers in two equal monthly installments. 3) For purposes of clearance, Enbridge shall include in the appropriate QRAM application, similar schedules, as indicated in Appendix "A", reflective of the balances approved in this Decision and Order. As there is some urgency to this request, we would be grateful if it could be addressed at the Board's early convenience. Should you have any questions, please contact me. cc: Mr. David Stevens, Aird & Berlis LLP All Interested Parties EB-2008-0219 and EB-2009-0055 5723742.2 Ontario Energy Board Commission de l’énergie de l’Ontario EB-2009-0055 IN THE MATTER OF the Ontario Energy Board Act 1998, S.O.1998, c.15, (Schedule B); AND IN THE MATTER OF an Application by Enbridge Gas Distribution Inc. for an order or orders amending or varying the rate or rates charged to customers as of October 1, 2009. BEFORE: Pamela Nowina Presiding Member and Vice Chair Paul Sommerville Member SUPPLEMENTARY DECISION AND ORDER Deferral and Variance Accounts Enbridge Gas Distribution Inc. (“Enbridge” or the “Applicant”) filed an application, dated March 18, 2009 (the “Application”), with the Ontario Energy Board (the “Board”) under section 36 of the Ontario Energy Board Act, S.O. 1998, c.15, Schedule B (the “Act”) for an order approving the disposition of balances in certain deferral or variance accounts. The Board assigned file number EB-2009-0055 to the Application and issued a Notice of Application dated April 1, 2009. The Board issued its Decision and Order on the matter on August 7, 2009 (the “Order”). On September 2, 2009, the Board received a letter from Enbridge seeking to vary the Order to alter the timing of the clearances of the balances in the deferral and variance accounts. In its Order, the Board had ordered the clearances to occur in October and November of 2009 to coincide with the October 1, 2009 quarterly commodity rate adjustment process for Enbridge (“QRAM”). In its letter, Enbridge requested that the -2- Ontario Energy Board clearance dates be postponed until 2010 when it expects that its new Customer Information System (“CIS”) will be able to facilitate the billing of the clearances. The Board issued Procedural Order No. 3 on September 4, 2009 which outlined a process for parties to make submissions on Enbridge’s request to vary the Order. The Board received submissions from the Industrial Gas Users Association (“IGUA”), Canadian Manufacturers & Exporters (“CME”) and Energy Probe Research Foundation (“Energy Probe”). No party objected to Enbridge’s request. CME, however, suggested that the Board order the clearances for January and February of 2010 and if the CIS billing system is still unable to handle it, then Enbridge should apply for another vary order. Enbridge replied that while it continues to expect that it will be in a position to clear its 2008 Deferral and Variance Accounts in January and February 2010, it will not know for certain whether that is advisable for some time. In keeping with this, Enbridge proposed that as part of its January 1, 2010 QRAM Application, it will either request the clearances of its 2008 Deferral and Variance Accounts in January and February 2010 or, if that is still not advisable, it will inform the Board of when the clearances will be effected. The Board finds that Enbridge’s proposal is acceptable. The Board will therefore await notice from Enbridge in its January 2010 QRAM Application on the appropriate timing of the clearances, including the advisability of clearing the accounts in January and February of 2010. The Board notes that the January 1, 2010 QRAM Application filing is expected on or around the first of December 2009. THE BOARD THEREFORE ORDERS THAT: 1. The Board’s August 7, 2009 Order is hereby varied to remove the requirement for the clearances of the deferral and variance accounts to coincide with the October 1, 2009 QRAM. -3- Ontario Energy Board 2. Enbridge shall report to the Board no later than the time of its filing for the January 1, 2010 QRAM on the advisability and proposed timing of the clearances of the deferral and variance accounts. 3. IGUA, CME and Energy Probe shall be eligible to submit to the Board, and provide a copy to Enbridge, any supplemental cost claim relating to this portion of the proceeding within 10 days of the day of this Decision and Order. 4. Enbridge shall file with the Board and forward these parties any objections to the claimed costs within 15 calendar days from the date of this Decision and Order. 5. Intervenors whose cost claims have been objected to may file with the Board and forward to Enbridge any responses to any objections for cost claims within 20 calendar days of the date of this Decision and Order. 6. All filings to the Board must quote file number EB-2009-0055, and consist of two paper copies and one electronic copy in searchable / unrestricted PDF format filed through the Board’s web portal at www.errr.oeb.gov.on.ca. Filings must clearly state the sender’s name, postal address and telephone number and, if available, a fax number and e-mail address. Please use the document naming conventions and document submission standards outlined in the RESS Document Guideline found on the “e-Filing Services” webpage of the Board’s website at www.oeb.gov.on.ca. If the web portal is not available you may email your document to BoardSec@oeb.gov.on.ca. DATED at Toronto, September 17, 2009 ONTARIO ENERGY BOARD Original signed by Kirsten Walli Board Secretary