ANNEXE I Gazifère Inc. Modifications du Tarif 200 avec commentaires Ajustement du coût du gaz Impact on Rate 200 from EB-2010-0347 – January 1, 2011 QRAM Enbridge Gas Distribution (“EGD”) is proposing the following changes to Rate 200 resulting from its EB-2010-0347 QRAM application for rates effective January 1, 2011. EGD’s January 1, 2011 EB-2010-0347 QRAM rates reflect the effects of the forecast gas costs for January 1, 2011 and the impacts of EGD’s Board Decision from its main rate case (EB-2010-0146) for calendar year rates effective January 1, 2011. EGD is forecasting a decrease in its PGVA reference price to $192.600/103m3 for January 1, 2011 EB-2010-0347 relative to $204.864/103m3 embedded in its EB-2010-0258 October 1, 2010 rates. Gas Supply Commodity The Rate 200 gas supply commodity charge will decrease from 15.2837 cents/ m3 from EB2010-0258 to 14.3123 cents/ m3 in EB-2010-0347 for sales service customers. The Rate 200 gas supply commodity charge will decrease from 15.2613 cents/ m3 from EB2010-0258 to 14.2900 cents/ m3 in EB-2010-0347 for buy/sell service customers. Gas Supply Load Balancing Charge The Gas Supply Load Balancing charge will increase from EB-2010-0258 to EB-2010-0347 as a result of higher seasonal load balancing costs offset by lower carrying cost of gas in inventory. Transportation Charge The transportation charge will decrease from EB-2010-0258 to EB-2010-0347 as a result of lower transportation related costs. Delivery Charge The Rate 200 delivery charge will decrease from EB-2010-0258 to EB-2010-0347. This is the result of the lower PGVA reference price applied to its Lost and Unaccounted for Gas volumes offset by a slight increase in EGD’s distribution costs for 2011 for its final decision under EB-2010-0146. The impact of EGD’s final rate case decision resulted in a rate increase to Rate 200 delivery rate of 0.3%. The combined impact of EB-2010-0347 and EB2010-0146 on the delivery rate is a decrease of approximately 0.2%. Original : 2010-12-13 Page 1 de 2 ANNEXE I Gazifère Inc. Modifications du Tarif 200 avec commentaires Ajustement du coût du gaz Rider C Effective from January 1, 2011 to December 31, 2011 the Rate 200 Rider C unit rate for sales and buy/sell customers is (2.0042) ¢/m³, for Western T-service it is 0.1398 ¢/m³ and for Ontario T-service it is 0.0527 ¢/m³. Adjustment for 2009 Deferral Account Clearing (EB-2010-0042) As a result of the Board Decision in EB-2010-0042 Final Rate Order, EGD will clear its 2009 Actual PGVA and Non Gas-Supply Related Deferral Account balances as a one-time billing adjustment on customers’ January 2011 bill. Gazifere will receive a refund of approximately $2,215,300 on its January 2011 bill. Original : 2010-12-13 Page 2 de 2 ANNEXE II GAZIFÈRE INC. CALCUL DE L'IMPACT UNITAIRE SUR LES TARIFS RÉSULTANT DE LA DIMINUTION DU TARIF 200 EB-2010-0347 AJUSTEMENT DU COÛT DU GAZ LINE NO. DESCRIPTION 1 Gas Supply Cost decrease $ '000 2 Transportation Cost increase $ '000 3 Delivery Cost increase $ '000 4 Total decrease in cost of service $ '000 4.1 4.2 3 3 VOLUMES 10 m Sales Deliveries 5.1 5.2 5.3 UNIT RATE IMPACT cents/m 3 Gas Supply Cost Transportation Cost Delivery Cost Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8 TOTAL TARIF 1 TARIF 2 TARIF 3 TARIF 5 TARIF 9 (1,192.0) -488.7 -699.0 -4.3 0.0 0.0 (651.0) -266.9 -381.7 -2.4 0.0 0.0 36.7 56.5 0.0 0.8 0.5 94.6 (1,748.4) 121,692.9 160,178.9 -0.98 -0.53 0.06 49,894.1 60,466.8 -0.98 -0.53 0.06 71,358.8 71,438.7 -0.98 -0.53 0.08 440.0 440.0 -0.98 -0.53 0.01 0.0 14,159.1 0.0 13,674.3 -0.98 -0.53 0.01 -0.98 -0.53 0.00 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 Regie's Decision D-2010-147 and the current pass-on. Line 2 Compares allocated transportation costs between the Regie's Decision D-2010-147 and the current pass-on. Line 3 Compares allocated delivery costs between the Regie's Decision D-2010-147 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-2010-147 (see Requête 3724-2010, GI-36, document 1, page 1of 1, lines 3,4,6,8,10,12,15 and 18, column 2). Line 4.2 Delivery volumes underpinning the Régie's Decision D-2010-147 (see Requête 3724-2010, GI-36, 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. Original: 2010-12-13 Page 1 de 1 ANNEXE III GAZIFÈRE INC. COÛT DU GAZ SELON LE TARIF 200 EB-2010-0347 BASÉ SUR LES VOLUMES DE L'ANNÉE TÉMOIN 2011 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 1111.2 TOTAL DELIVERIES TOTAL SALES T-SERVICE RECEIPTS 24,734.5 20,570.6 4,163.8 Col. 2 FEB 1111.2 25,742.6 21,683.0 4,059.6 Col. 3 MAR 1111.2 21,964.4 17,919.1 4,045.3 Col. 4 APR 1111.2 15,972.5 12,514.1 3,458.4 Col. 5 MAY 1111.2 Col. 6 JUN 1111.2 Col. 7 JUL 1111.2 Col. 8 AUG 1111.2 Col. 9 SEP Col. 10 OCT 1111.2 1111.2 8,985.8 5,977.9 3,008.0 6,314.2 3,699.3 2,614.9 5,840.5 3,345.7 2,494.9 5,561.9 3,267.8 2,294.0 5,597.7 3,277.2 2,320.5 8,461.4 5,427.5 3,033.9 Col. 11 NOV 1111.2 13,994.2 10,612.3 3,381.9 Col. 12 DEC Col. 13 TOTAL 1111.2 19,338.0 15,523.1 3,815.0 162,507.8 (2) 123,817.6 38,690.2 GAS COST CALCULATION RATES EB-2010-0347 Demand Charge Delivery Charge 14.7000 1.1202 163,346 277,075 440,422 163,346 288,369 451,715 163,346 246,045 409,391 163,346 178,924 342,270 163,346 100,659 264,006 163,346 70,732 234,078 163,346 65,426 228,772 163,346 62,304 225,650 163,346 62,706 226,052 163,346 94,785 258,131 163,346 156,763 320,109 163,346 216,625 379,971 1,960.2 1,820.4 3,780.6 Load Balancing Transportation Gas supply (buy/sell) Gas supply (system) CURTAILMENT 0.5881 4.5736 14 2900 14.2900 14.3123 -1.1000 145,463 940,819 58 791 58,791 2,885,250 151,392 991,693 61 970 61,970 3,041,268 129,173 819,548 51 213 51,213 2,513,342 93,934 572,346 35 765 35,765 1,755,237 52,846 273,405 17 085 17,085 838,462 37,134 169,190 10 573 10,573 518,864 34,348 153,017 9 562 9,562 469,264 32,709 149,457 9 339 9,339 458,347 32,920 149,886 9 366 9,366 459,663 49,762 248,232 15 512 15,512 761,263 82,300 485,365 30 330 30,330 1,488,488 113,727 709,963 44 365 44,365 2,177,273 955.7 5,662.9 353 9 353.9 17,366.7 TOTAL 4,470,746 4,698,039 3,922,666 2,799,552 1,445,803 969,839 894,963 875,503 877,887 1,332,900 2,406,592 3,425,299 28,119.8 Niagara Gas Transmission RATES: EB-2010-0347 118,483 4,589,229 118,483 4,816,522 118,483 4,041,149 118,483 2,918,035 118,483 1,564,286 118,483 1,088,322 118,483 1,013,446 118,483 993,986 118,483 996,370 118,483 1,451,383 118,483 2,525,075 118,483 3,543,782 1,421.8 29,541.6 29 30 RATES: EB-2010-0258 4,881,256 5,124,566 4,295,248 3,095,056 1,647,918 1,139,560 1,059,697 1,039,260 1,041,760 1,527,108 2,674,886 3,763,691 31,290.0 31 32 Écart entre EB-2010-0347 et EB-2010-0258 (1,748.4) Notes: (1) Coût du gaz total selon le tarif 200 en vigueur le 1er janvier 2011. (2) Correspond aux volumes d'achat à 37,69 MJ/m³ tel qu'approuvés par la Régie dans sa décision D-2010-147 ( Voir R-3724-2010, GI-40, document 2.1, page 1 de 1, ligne 6, révisé le 8 décembre 2010). Original: 2010-12-13 Page 1 de 1 ANNEXE IV GAZIFÈRE INC. COÛT DU GAZ SELON LE TARIF 200 EB-2010-0258 (1) BASÉ SUR LES VOLUMES DE L'ANNÉE TÉMOIN 2011 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 1111.2 TOTAL DELIVERIES TOTAL SALES T-SERVICE RECEIPTS 24,734.5 20,570.6 4,163.8 Col. 2 FEB 1111.2 25,742.6 21,683.0 4,059.6 Col. 3 MAR 1111.2 21,964.4 17,919.1 4,045.3 Col. 4 APR 1111.2 15,972.5 12,514.1 3,458.4 Col. 5 MAY 1111.2 Col. 6 JUN 1111.2 Col. 7 JUL 1111.2 Col. 8 AUG 1111.2 Col. 9 SEP Col. 10 OCT 1111.2 1111.2 8,985.8 5,977.9 3,008.0 6,314.2 3,699.3 2,614.9 5,840.5 3,345.7 2,494.9 5,561.9 3,267.8 2,294.0 5,597.7 3,277.2 2,320.5 8,461.4 5,427.5 3,033.9 Col. 11 NOV 1111.2 13,994.2 10,612.3 3,381.9 Col. 12 DEC Col. 13 TOTAL 1111.2 19,338.0 15,523.1 3,815.0 162,507.8 (2) 123,817.6 38,690.2 GAS COST CALCULATION RATES EB-2010-0258 Demand Charge Delivery Charge 14.7000 1.1218 163,346 277,471 440,818 163,346 288,781 452,127 163,346 246,396 409,743 163,346 179,179 342,526 163,346 100,803 264,150 163,346 70,833 234,179 163,346 65,519 228,866 163,346 62,393 225,739 163,346 62,795 226,142 163,346 94,920 258,267 163,346 156,987 320,333 163,346 216,934 380,280 1,960.2 1,823.0 3,783.2 Load Balancing Transportation Gas supply (buy/sell) Gas supply (system) CURTAILMENT 0.5180 5.1042 15 2613 15.2613 15.2837 -1.1000 128,125 1,049,967 62 787 62,787 3,081,077 133,347 1,106,743 66 182 66,182 3,247,684 113,775 914,626 54 694 54,694 2,683,927 82,737 638,746 38 196 38,196 1,874,368 46,547 305,123 18 246 18,246 895,370 32,708 188,819 11 291 11,291 554,080 30,254 170,769 10 212 10,212 501,113 28,810 166,797 9 974 9,974 489,456 28,996 167,275 10 003 10,003 490,861 43,830 277,030 16 566 16,566 812,932 72,490 541,673 32 392 32,392 1,589,514 100,171 792,328 47 380 47,380 2,325,048 841.8 6,319.9 377 9 377.9 18,545.4 TOTAL 4,762,773 5,006,083 4,176,765 2,976,573 1,529,435 1,021,077 941,214 920,777 923,277 1,408,625 2,556,403 3,645,208 29,868.2 EB-2010-0258 118,483 4,881,256 118,483 5,124,566 118,483 4,295,248 118,483 3,095,056 118,483 1,647,918 118,483 1,139,560 118,483 1,059,697 118,483 1,039,260 118,483 1,041,760 118,483 1,527,108 118,483 2,674,886 118,483 3,763,691 1,421.8 31,290.0 Niagara Gas Transmission RATES: Notes: (1) Coût du gaz total selon le tarif 200 en vigueur le 1er octobre 2010. (2) Correspond aux volumes d'achat à 37,69 MJ/m³ tel qu'approuvés par la Régie dans sa décision D-2010-147 ( Voir R-3724-2010, GI-40, document 2.1, page 1 de 1, ligne 6, révisé le 8 décembre 2010). Original: 2010-12-13 Page 1 de 1 ANNEXE V GAZIFÈRE INC. AJUSTEMENT SUBSÉQUENT AUX TARIFS EN VIGUEUR RÉSULTANT DE LA DÉCISION D-2010-147 AJUSTEMENT DU COÛT DU GAZ ITEM NO. DESCRIPTION January 1st 2011 Rates with October 1st, 2010, rate 200 Proposed Proposed Rates January 1st, 2011 D-2010-147 Adjustment Pass On col.1 col.2 col.3 Rate 1: 1 Monthly Fixed Charge ($) 17.13 0.00 17.13 2 3 4 5 6 7 Delivery Charge (¢/m³): from 0 to 100 m³ from 100 to 320 m³ from 320 to 1,000 m³ from 1,000 to 3,200 m³ from 3,200 to 10,000 m³ in excess of 10,000 m³ 19.32 18.27 17.24 16.17 14.12 12.55 0.06 0.06 0.06 0.06 0.06 0.06 19.38 18.33 17.30 16.23 14.18 12.61 8 Transportation Charge 5.15 -0.53 4.62 9 Gas Supply Charge 15.48 -0.98 14.50 10.05 0.00 10.05 Rate 2: 10 Monthly Fixed Charge ($) 11 12 13 14 15 Delivery Charge (¢/m³): from 0 to 50 m³ from 50 to 100 m³ from 100 to 320 m³ from 320 to 1,000 m³ in excess of 1,000 m³ 20.42 19.86 19.29 18.74 18.17 0.08 0.08 0.08 0.08 0.08 20.50 19.94 19.37 18.82 18.25 16 Transportation Charge 5.15 -0.53 4.62 17 Gas Supply Charge 15.48 -0.98 14.50 20.68 0.00 20.68 Rate 3: 18 Monthly Fixed Charge: (¢/m³ of the subscribed volume) Delivery Charge (¢/m³): For all volumes delivered 8.38 0.01 8.39 19 20 Transportation Charge 5.15 -0.53 4.62 21 Gas Supply Charge 15.48 -0.98 14.50 20.94 0.00 20.94 6.61 5.61 0.01 0.01 6.62 5.62 Rate 4: 22 23 24 Monthly Fixed Charge: (¢/m³ of the subscribed volume) Delivery Charge (¢/m³): Load factor less or equal to 70% Load factor higher than 70% 25 Transportation Charge 5.15 -0.53 4.62 26 Gas Supply Charge 15.48 -0.98 14.50 Original: 2010-12-13 Page 1 de 2 ANNEXE V GAZIFÈRE INC. AJUSTEMENT SUBSÉQUENT AUX TARIFS EN VIGUEUR RÉSULTANT DE LA DÉCISION D-2010-147 AJUSTEMENT DU COÛT DU GAZ ITEM NO. DESCRIPTION January 1st 2011 Rates with October 1st, 2010, rate 200 Proposed Proposed Rates January 1st, 2011 D-2010-147 Adjustment Pass On col.1 col.2 col.3 31.76 0.00 31.76 Rate 5: 27 Monthly Fixed Charge: (¢/m³ of the subscribed volume) 28 Delivery Charge (¢/m³): For all volumes delivered 3.15 0.01 3.16 29 Transportation Charge 5.15 -0.53 4.62 30 Gas Supply Charge 15.48 -0.98 14.50 20.94 0.00 20.94 3.34 0.42 0.00 0.00 3.34 0.42 Rate 6: 31 32 33 Monthly Fixed Charge: (¢/m³ of the subscribed volume) Delivery Charge (¢/m³): Maximum Minimum 34 Transportation Charge 5.15 -0.53 4.62 35 Gas Supply Charge 15.48 -0.98 14.50 Rate 7: 21 42 21.42 0 00 0.00 21 42 21.42 36 37 38 39 40 41 Monthly Fixed Charge Delivery Charge (¢/m³): from 0 to 100 m³ from 100 to 320 m³ from 320 to 1,000 m³ from 1,000 to 3,200 m³ from 3,200 to 10,000 m³ in excess of 10,000 m³ 20.38 19.32 18.28 17.25 15.17 13.60 0.06 0.06 0.06 0.06 0.06 0.06 20.44 19.38 18.34 17.31 15.23 13.66 42 Transportation Charge 5.15 -0.53 4.62 43 Gas Supply Charge 15.48 -0.98 14.50 8.90 1.61 0.00 0.00 8.90 1.61 Tarif 8: 44 45 Delivery Charge (¢/m³): Maximum Minimum 46 Transportation Charge 5.15 -0.53 4.62 47 Gas Supply Charge 15.48 -0.98 14.50 3.15 0.00 3.15 2.19 2.02 0.00 0.00 2.19 2.02 Tarif 9: 48 49 50 Monthly Fixed Charge: (¢/m³ times the maximum daily volume) Delivery Charge (¢/m³): from 0 to 1,000,000 m³ in excess of 1,000,000 m³ 51 Transportation Charge 5.15 -0.53 4.62 52 Gas Supply Charge 15.48 -0.98 14.50 Original: 2010-12-13 Page 2 de 2 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) 3 ¢/m Proposed rate of other components 3 ¢/m 2 3=1+2 13.01 (6.19) 6.82 load factor less or equal to 70% 11.24 (6.49) 4.75 load factor higher than 70% 10.24 (6.49) 3.75 6 Rate 5 7.78 (6.11) 1.67 7 Rate 9 6.64 (5.66) 0.98 8 Maximum charge on a prorated basis of any annual minimum bill incurred by Gazifère 9 Rate 3 13.01 s/o 13.01 10 Rate 4 11 load factor less or equal to 70% 11.24 s/o 11.24 12 load factor higher than 70% 10.24 s/o 10.24 13 Rate 5 7.78 s/o 7.78 14 Rate 9 6.64 s/o 6.64 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: 2010-12-13 Page 1 de 1 ANNEXE VII Gazifère Inc. Taux unitaire et revenus par composante et par tarif Ajustement du coût du gaz January 1st, 2011 with October 2010 rate 200 D-2010-147 Line No. Unit rate cents/m3 Col. 1 Total $ '000 Col. 2 January 1st, 2011 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 (2) Transportation Distribution Total 15.48 4.11 5.15 11.28 36.02 7,724 2,488 2,567 6,823 19,602 14.50 4.17 4.62 11.28 34.57 15.48 4.81 5.15 20.34 45.78 11,047 3,436 3,672 14,532 32,687 14.50 4.89 4.62 20.34 44.35 15.48 68 1.68 5.15 7.72 30.03 7 23 34 132 7,235 2,525 2,300 6,823 18,883 (489) 37 (267) (719) -6% 1% -10% 0% -4% 10,347 3,493 3,290 14,532 31,662 (699) 57 (382) (1,024) -6% 2% -10% 0% -3% 14.50 64 (4) -6% 1.69 4.62 7.72 28.53 7 20 34 126 0 (2) 1% -10% 0% -5% Rate 2 2.1 2.2 2.3 2.4 2.0 Gas Supply Commodity (2) Gas Supply Load Balancing Transportation Distribution Total Rate 3 3.1 Gas Supply Commodity 3.2 3.3 3.4 3.0 Gas Supply Load Balancing (2) Transportation Distribution Total (7) Rate 5 4.1 4.2 4.3 4.4 4.0 Gas Supply Commodity Gas Supply Load Balancing (2) Tranportation Distribution Total 15.48 1.18 5.15 3.32 25.12 167 469 636 14.50 1.18 4.62 3.32 23.62 168 469 637 15.48 0.67 5.15 2.31 23.61 - 14.50 0.67 4.62 2.31 22.10 317 408 14.50 3.92 4.62 13.84 36.89 17,647 6,284 5,611 22,175 51,717 1 1 -6% 1% -10% 0% -6% Rate 9 5.1 5.2 5.3 5.4 5.0 Gas Supply Commodity Gas Supply Load Balancing (2) Transportation Distribution Total 92 317 408 92 - -6% 0% -10% 0% -6% (1,193) 95 (651) (1,748) -6% 2% -10% 0% -4% Gazifère Total 6.1 6.2 6.3 6.4 6.0 Gas Supply Commodity Gas Supply Load Balancing (2) Transportation Distribution Total 15.48 3.86 5.15 13.84 38.33 18,839 6,190 6,262 22,175 53,465 Notes: (1) The % variance depicts the change in the unit rates. (2) Load Balancing Unit Rate = Load Balancing Rate from Column 1 + Unitized Change in Delivery Costs from Annexe II, line 5.3. Original: 2010-12-13 Page 1 de 3 ANNEXE VIII ('000 Dollars) Gazifère Inc. Revenus totaux par composantes Tarif du 1er janvier 2011 versus tarif du 1er octobre 2010 Ajustement du coût du gaz 35000 30000 25000 20000 15000 10000 5000 0 October 10 January 11 Gas Supply Commodity, Load Balancing & Transportation Distribution Original: 2010-12-13 Page 2 de 3 ANNEXE IX Gas Supply Commodity Gazifère Inc. Taux unitaire par composante Tarif du 1er janvier 2011 versus tarif du 1er octobre 2010 Ajustement du coût du gaz 55 50 Gas Supply Load Balancing Transportation Distribution 45 Unit Rate cents/m3 40 35 30 25 20 15 10 5 0 Oct110 2 Jan Passon Rate 1 Original: 2010-12-13 Oct 3 10 Jan Passon 4 Rate 2 Oct 5 10 Jan Passon 6 Rate 3 Oct710 Jan Passon 8 Rate 4 Oct 10 9 Jan Passon 10 Rate 5 Oct 10 11 Jan Passon 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 2011 au 31 décembre 2011. Tarifs Service de vente et service achat / revente (¢/m3) Service de transport (¢/m3) 1à9 (2,16) 0,00 Note: (1) Voir "Rider C - Gas Cost Adjustment Rider " à la page 56 du "Rate Handbook", composante "Commodity" de Enbridge Gas Distribution, requête EB-2010-0347. Le montant de (2,1440) ¢/m³ a été ajusté pour la valeur calorifique. Original: 2010-12-13 Page 1 de 1 ANNEXE XI GAZIFÈRE INC. AJUSTEMENT DU COÛT DU GAZ - JANVIER 2011 LIQUIDATION DU COMPTE AJUSTEMENT DU COÛT DU GAZ ET COMPTES DIFFÉRÉS D'EGD CALCUL DE LA RÉCUPÉRATION NETTE (DU REMBOURSEMENT NET) PAR TYPE DE CLIENT PÉRIODE DE RÉFÉRENCE: 2009 No de ligne Description 1 Solde du compte ajustement du coût du gaz au 31 décembre 2009 ($) 2 Service de vente et service achat / revente Service de transport 1 2 Total 3 = 1+2 ($782,871) $48,840 ($734,031) (1) Liquidation des comptes différés d'EGD ($) ($2,226,000) $10,700 ($2,215,300) (2) 3 Remboursement net total par type de client ($) ($3,008,871) $59,540 ($2,949,331) 4 Volumes de ventes du 1er janvier au 31 décembre 2009 (m³) 122,173,506 5 Taux unitaire par type de client -2.46 ¢/m³ 52,924,005 0.11 ¢/m³ Notes: (1) Voir Requête 3724-2010, Phase III (Fermeture des livres 2009), Décision D-2010-112, page 19. (2) Voir Requête d'EGD, EB-2010-0042, Appendix B, page 3 of 6, line item 1.11, column 1, tel que retrouvé à l'annexe XII. Original: 2010-12-13 Page 1 de 1 175,097,511 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 200 - Rider A, B, C & E - EB-2010-0042 (2009 Deferral and variance Accounts) Original: 2010-12-13 34 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 10, 2010 Ms. Kirsten Walli Board Secretary Ontario Energy Board 2300 Yonge Street, 27 th Floor Toronto, Ontario M4P 1E4 Dear Ms. Walli: Re: EB-2010-0347 (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 two 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, 2011. The Board approved the original Quarterly Rate Adjustment Mechanism CQRAM") 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. This QRAM application also includes the rate impacts approved in the Board's decision and rate order in EB-2010-0146 Final 2011 Rates dated December 8, 2010. Additionally, as was ordered by the Board in the EB-2010-0042 Final Rate Order dated December 7, 2010, the Company will clear the 2009 deferral and variance account balances as a one-time adjustment on customers' January 2011 bills. A copy of the approved unit rates has been included under Exhibit Q1-1 , Tab 3, Schedule 1. 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. December 10,2010 Ms. Walli Page 2 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 15, 2010. • Any reply comments from Enbridge must be filed with the Board, and served on all interested parties, on or before December 17, 2010. • The Board would thereafter issue an order approving the applied-for rate adjustments, or modifying them as required, effective January 1, 2011. Enbridge requests the Board to issue such an order on or before December 22, 2010 (if possible). Enbridge would then be able to implement the resultant rates during Enbridge's first billing cycle in January 2011. 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, (L 1OR..Norm Ryckman Director, Regulatory Affairs Encl. cc: Mr. Fred Cass, Aird & Berlis LLP All Interested Parties EB-201 0-0146 Filed: 2010-12-10 EB-2010-0347 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, 2011. APPLICATION FOR RATE ADJUSTMENT Gas Costs First Quarter· Test Year 2011 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 January 1, 2011. 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, paragraph 687. Filed: 2010-12-10 EB-2010-0347 Exhibit Q1-1 Tab 2 Schedule 1 Page 2 of 5 • RP-2003-0203: The QRAM Issue 15.11 in the Settlement Exhibit N1, Tab 1, Schedule approved the entire Settlement transcript volume 1, paragraphs. process was modified, under Proposal dated June 17, 2004, 1, pp. 56-58 of 59. The Board Proposal on June 16, 2003; see 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 approved in EB-2010-0146 Final 2011 Rates is $204.190/10 3 m3 ($5.418/GJ @ 37.69 MJ/m 3 ). This represents the October 1, 2010 QRAM prices applied to the 2011 gas supply portfolio. Enbridge has recalculated the utility price for the first quarter of Test Year 2011 using the prescribed methodology. The recalculated utility price is $192.600/10 3m3 ($5.110/GJ @ 37.69 MJ/m 3) reflecting lower gas costs. 5. Enbridge proposes to also implement the rate impacts as approved in the Board's decision and rate order in EB-2010-0146 Final 2011 Rates dated December 8, 2010 and as is described in evidence. 6. The resultant rates would decrease the total bill for a typical residential customer on system gas by $42 or 3.9% (approx.) annually and, for a typical residential customer on direct purchase (i.e., total bill excluding commodity charges), would decrease the total bill by $12 or 1.9% (approx.) annually. PGVA 7. 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 cOrTlmodity, transportation and load balancing costs for all bundled customers. 8. Effective from January 1, 2011 to December 31, 2011 the Rider C unit rate for a residential customer on sales service is (2.0181) ¢/m 3 , on Western T-service it is 0.1553 ¢/m 3 and on Ontario T-service it is 0.0682 ¢/m 3 . Filed: 2010-12-10 EB-2010-0347 Exhibit Q1-1 Tab 2 Schedule 1 Page 3 of 5 Other 9. Enbridge is implementing the clearing of its 2009 deferral and variance account balances as a one-time adjustment on customers' January 2011 bills as was ordered by the Board in EB-2010-0042 Final Rate Order dated December 7,2010. Regulatory Framework 10. 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). 11. 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 December 15, 2010. • Any reply comments from Enbridge are filed with the Board, and served on all interested parties, on or before December 17, 2010. • The Board thereafter issues an order approving the applicable rate adjustments or modifying them as required, effective January 1, 2011. 12. Enbridge requests that the Board issue such an order on or before December 22,2010 (if possible). Enbridge would then be able to implement the resultant rates during the first billing cycle in January 2011. 13. 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. Filed: 2010-12-10 EB-201 0-0347 Exhibit Q1-1 Tab 2 Schedule 1 Page 4 of 5 • 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. 14. 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: (416) 495-5499 (416) 495-6072 Electronic access: egdregulatoryproceedigns@enbridge.com (2) Ms. Tania Persad Senior Legal Counsel, Regulatory . Telephone: Fax: (416) 495-5891 (416) 495-5994 Electronic access: 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 M1K5E3 Filed: 2010-12-10 EB-20 10-0347 Exhibit 01-1 Tab 2 Schedule 1 Page 5 of 5 DATE: December 10, 2010 ENBRIDGE GAS DISTRIBUTION INC. Per: Norm Ryckman Director, Regulatory Affairs _~~~---l.......3..:.~~"':""'-::"""--=-------=:::: _ Filed: 2010-12-10 EB-2010-0347 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: 2010-12-10 EB-2010-0347 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: 2010-12-10 EB-2010-0347 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: 2010-12-10 EB-2010-0347 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: 2010-12-10 EB-2010-0347 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: 2010-12-10 EB-2010-0347 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 1.1202 ¢/m³ Gas Supply Load Balancing Charge 0.5881 ¢/m³ Transportation Charge per cubic metre 4.5736 ¢/m ¢/m³ System Sales Gas Supply Charge per cubic metre (If applicable) Buy/Sell Sales Gas Supply Charge per cubic metre (If applicable) 14.3123 ¢/m³ 14.2900 ¢/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, 2011 January 1, 2011 EB-2010-0347 January 1, 2011 $ 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 highest 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 orfeiting 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): 6.2414 ¢/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, 2011 under Sales Service including Buy/Sell Arrangements and Transportation Service. This rate schedule is effective January 1, 2011 and replaces the identically numbered rate schedule that specifies implementation date, January 1, 2011 and that indicates as the Board Order, EB-2010-0146, effective January 1, 2011. EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2011 January 1, 2011 EB-2010-0347 January 1, 2011 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: Fixed Charge $75.00 per month Account Charge $0.21 per month per account AVERAGE COST OF TRANSPORTATION: The average cost of transportation effective January 1, 2011: Point of Acceptance Firm Transportation (FT) CDA, EDA 4.5736 ¢/m³ TCPL FT CAPACITY TURNBACK: APPLICABILITY: To Ontario T-Service and Western 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 requests from customers, but only if it can do so in accordance with the following considerations: i. The FT capacity to be turned back must be replaced with alternative, contracted firm transportation (primary capacity or assignment) of equivalent quality to the TCPL FT capacity; ii. The amount of turnback capacity that Enbridge otherwise may accommodate may be reduced to address the impact of stranded costs, other transitional costs or incremental gas costs resulting from the loss of STS capacity arising from any turnback request; and iii. Enbridge must act in a manner that maintains the integrity and reliability of the gas distribution system and that respects the sanctity of contracts. 2. Requests for TCPL FT turnback must be made in writing to the attention of Enbridge's Direct Purchase group. 3. All TCPL FT capacity turnback requests will be treated on an equitable basis. 4. The percentage turnback of TCPL FT capacity will be applied at the Direct Purchase Agreement level. EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2011 January 1, 2011 EB-2010-0347 January 1, 2011 Page 1 of 2 Handbook 51 RIDER: 5. A 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, 2011. This rate schedule is effective January 1, 2011 and replaces the identically numbered rate schedule that specifies implementation date, January 1, 2011 and that indicates as the Board Order, EB-2010-0146 effective January 1, 2011. EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2011 January 1, 2011 EB-2010-0347 January 1, 2011 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: Fixed Charge $75.00 per month Account Charge $0.21 per month per account 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, 2011. This rate schedule is effective January 1, 2011 and replaces the identically numbered rate schedule that specifies implementation date, January 1, 2011 and that indicates as the Board Order, EB-2010-0146 effective January 1, 2011. EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2011 January 1, 2011 EB-2010-0347 January 1, 2011 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, 2011 to December 31, 2011. Sales Service ( ¢/m³ ) Western Transportation Service ( ¢/m³ ) Ontario Transportation Service ( ¢/m³ ) Rate 1 (2.0181) 0.1553 0.0682 Rate 6 (2.0128) 0.1521 0.0650 Rate 9 (3.2049) 0.0876 0.0005 Rate 100 (2.0128) 0.1521 0.0650 Rate 110 (3.1435) 0.1003 0.0132 Rate 115 (3.2028) 0.0915 0.0044 Rate 135 (3.4011) 0.0871 0.0000 Rate 145 (2.4007) 0.1206 0.0335 Rate 170 (2.9226) 0.1061 0.0190 Rate 200 (2.0042) 0.1398 0.0527 Rate Class EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2011 January 1, 2011 EB-2010-0347 January 1, 2011 Page 1 of 3 Handbook 54 RIDER: C Sales Service ( ¢/m³ ) Rate Class Rate 1 Rate 6 Rate 9 Rate 100 Rate 110 Rate 115 Rate 135 Western Transportation Service ( ¢/m³ ) Ontario Transportation Service ( ¢/m³ ) Commodity (2.1734) Transportation 0.0871 0.0871 Load Balancing 0.0682 0.0682 0.0682 Total (2.0181) 0.1553 0.0682 Commodity (2.1649) Transportation 0.0871 0.0871 Load Balancing 0.0650 0.0650 0.0650 Total (2.0128) 0.1521 0.0650 Commodity (3.2925) Transportation 0.0871 0.0871 Load Balancing 0.0005 0.0005 0.0005 Total (3.2049) 0.0876 0.0005 Commodity (2.1649) Transportation 0.0871 0.0871 Load Balancing 0.0650 0.0650 0.0650 Total (2.0128) 0.1521 0.0650 Commodity (3.2438) Transportation 0.0871 0.0871 Load Balancing 0.0132 0.0132 0.0132 Total (3.1435) 0.1003 0.0132 Commodity (3.2943) Transportation 0.0871 0.0871 Load Balancing 0.0044 0.0044 0.0044 Total (3.2028) 0.0915 0.0044 Commodity (3.4882) Transportation 0.0871 0.0871 Load Balancing 0.0000 0.0000 0.0000 Total (3.4011) 0.0871 0.0000 EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2011 January 1, 2011 EB-2010-0347 January 1, 2011 Page 2 of 3 Handbook 55 RIDER: C Sales Service ( ¢/m³ ) Rate Class Rate 145 Rate 170 Rate 200 Western Transportation Service ( ¢/m³ ) Ontario Transportation Service ( ¢/m³ ) Commodity (2.5213) Transportation 0.0871 0.0871 Load Balancing 0.0335 0.0335 0.0335 Total (2.4007) 0.1206 0.0335 Commodity (3.0287) Transportation 0.0871 0.0871 Load Balancing 0.0190 0.0190 0.0190 Total (2.9226) 0.1061 0.0190 Commodity (2.1440) Transportation 0.0871 0.0871 Load Balancing 0.0527 0.0527 0.0527 Total (2.0042) 0.1398 0.0527 EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2011 January 1, 2011 EB-2010-0347 January 1, 2011 Page 3 of 3 Handbook 56 RIDER: E REVENUE ADJUSTMENT RIDER Bundled Services Rate Class Sales Service ( ¢/m³ ) Western Transportation Service ( ¢/m³ ) Ontario Transportation Service ( ¢/m³ ) Rate 1 0.0000 0.0000 0.0000 Rate 6 0.0000 0.0000 0.0000 Rate 9 0.0000 0.0000 0.0000 Rate 100 0.0000 0.0000 0.0000 Rate 110 0.0000 0.0000 0.0000 Rate 115 0.0000 0.0000 0.0000 Rate 135 0.0000 0.0000 0.0000 Rate 145 0.0000 0.0000 0.0000 Rate 170 0.0000 0.0000 0.0000 Rate 200 0.0000 0.0000 0.0000 Distribution Service ( ¢/ ¢/m³³ ) Unbundled Services Rate Class Rate 125 0.0000 Rate 300 0.0000 EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2011 January 1, 2011 EB-2010-0347 January 1, 2011 Page 1 of 1 Handbook 58 Ontario Energy Board Commission de l’énergie de l’Ontario EB-2010-0042 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 approving the clearance or disposition of amounts recorded in certain deferral or variance accounts. BEFORE: Paul Sommerville Presiding Member Paula Conboy Member FINAL RATE ORDER 2009 Earnings Sharing Mechanism and other Deferral Accounts Enbridge Gas Distribution Inc. (“Enbridge” or the “Company”) filed an application, dated April 16, 2010, with the Ontario Energy Board (the “Board”) under section 36 of the Ontario Energy Board Act, S.O. 1998, c.15, Schedule B for an order approving the disposition of balances in certain deferral or variance accounts. The Board assigned file number EB-2010-0042 to the Application and issued a Notice of Application & Procedural Order No. 1 on May 6, 2010. The Board scheduled a Settlement Conference on June 21 and 22, 2010 and Enbridge filed the Settlement Agreement on June 29, 2010. The Board accepted the Settlement Agreement in its Decision and Procedural Order No. 2 dated July 8, 2010. On November 26, 2010, and in accordance with section 20 of the Settlement Agreement, Enbridge filed a Draft Rate Order with schedules showing the balances, unit rates by Ontario Energy Board -2rate class, and clearance timing for the clearance of the subject deferral and variance accounts. The clearances were agreed in the Settlement Agreement to be implemented as a one-time clearance to customers in the January 2011 billing cycle. All parties to the proceeding were provided a copy of the Draft Rate Order. On November 29, 2010 the Board issued Procedural Order No. 3 which outlined a process for parties to comment on the Draft Rate Order. The materials filed by Enbridge included the following: A schedule showing the balances and associated interest for all the accounts approved for clearance (reference: Exhibit B, Tab 5, Schedule 1, originally filed in the Company's 2011 rate proceeding EB-2010-0146, dated October 1, 2010); Schedules showing the derivation of the proposed unit rates for the clearance of the account balances to customers as a one-time billing adjustment on customers’ January 2011 bills; and Correspondence from the Canada Revenue Agency dated November 25, 2010 in response to the Company's request for a GST/HST ruling relating to the account clearances. None of the parties provided any comments to the Board on the Draft Rate Order. The rates in the Draft Rate Order are designed for clearance in January 2011. The Board notes that there will be a natural gas commodity rate adjustment effective January 1, 2011 under the Quarterly Rate Adjustment Mechanism (“QRAM”) process and that the Settlement Agreement stated an intention that the clearances would be included with that application. The QRAM draft order is expected to be filed on or about December 10, 2010 under docket EB-2010-0347. Having reviewed all of the materials, the Board considers it appropriate to proceed with its Final Rate Order as proposed by Enbridge. THE BOARD ORDERS THAT: 1. The deferral and variance account balance schedule relating to the January 2011 clearances, including the associated interest amounts, and as attached as Appendix “A” to this order, is accepted as the basis for the rates in this order. Ontario Energy Board -32. The unit rates derived for the one-time clearance, attached as Appendix “B” to this order, shall be implemented and made effective in the January 2011 billing cycle. DATED at Toronto, December 7, 2010 ONTARIO ENERGY BOARD Original signed by Kirsten Walli Board Secretary APPENDIX “A” TO FINAL RATE ORDER BOARD FILE NO. EB-2010-0042 DATED December 7, 2010 APPENDIX “B” TO FINAL RATE ORDER BOARD FILE NO. EB-2010-0042 DATED December 7, 2010 ANNEXE XIII GAZIFÈRE INC. Calcul du taux en ¢/m3 associé à la redevance au Fonds vert Facturation à compter du 1er janvier 2011 Redevance annuelle au Fonds vert ($) Liquidation du compte différé au 31 décembre 2009 1,400,757.77 (1) -218,166.91 (2) Redevance nette à récupérer 1,182,590.86 Volumes de ventes annuels prévus pour l'année témoin 2011 (m3) 160,178,900 (3) Taux qui sera facturé aux clients pendant la période du 1er janvier au 31 décembre 2011 Notes: Original: 2010-12-13 3 0.74 ¢/m (1) Correspond à la redevance annuelle au Fonds vert de Gazifère pour la période du 1er octobre 2010 au 30 septembre 2011. (2) Correspond au montant de (53 501$) retrouvé à la pièce GI-13, document 1.5, page 1 de 1, ligne 6, colonne 12 de la requête 3724-2010 auquel Gazifère a déduit la facture au montant de 331 589$ qui a été payé en décembre 2009 et a exclu la liquidation de 2010 du compte différé au 31 décembre 2008 au montant de (166 923$). Ces deux derniers montants, faisant partie du solde de (53 501$), ont été inclus dans le calcul du taux unitaire facturé durant l'année 2010. (3) Voir requête 3724-2010, GI-36, document 1, page 1 de 1, ligne 23, colonne 2. Page 1 de 2 ANNEXE XIII GAZIFÈRE INC. ANNEXE REDEVANCE AU FONDS VERT REDEVANCE AU FONDS VERT Une charge de 0,74 ¢/m³ visant à récupérer les sommes versées à titre de redevance au Fonds vert exigée par le gouvernement du Québec s'applique à tous les volumes de gaz livrés et vendus durant la période du 1er janvier au 31 décembre 2011. Original: 2010-12-13 Page 2 de 2