Filed: 2002-12-04 EB-2002-0494 RP-2002-0133 Exhibit Q2-1 Tab 1 Schedule 1 Page 1 of 4 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, 2003. APPLICATION FOR RATE ADJUSTMENT Gas Costs Second Quarter - Test Year 2003 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, 2003. This Application is made pursuant to, and the Order would be issued under, section 36 of the Ontario Energy Board Act, 1998, as amended. The Order would be made interim, though, under subsection 21(7) of this statute. 2. This Application and the supporting evidence were prepared in accordance with the methodology prescribed in the Settlement Proposal, under Issue 2.2, approved by the Board in the RP-2000-0040 proceeding.1 The text of the agreement to settle Issue 2.2 is presented in Appendix A. Utility Price Adjustment 3. Enbridge’s utility price during this first quarter of Test Year 2003 is $237.963/103m3 ($6.314/GJ @ 37.69 MJ/m3). This price was approved by the 1 The "Settlement Proposal (Main Case)" is dated May 11, 2001 and was approved by the Board on May 30, 2001: 1 Tr. 107-9. See also the Board's Final Rate Order dated June 28, 2001 and its Reasons for Decision dated August 17, 2001; a copy of the Settlement Proposal is Appendix A to the latter. Filed: 2002-12-04 EB-2002-0494 RP-2002-0133 Exhibit Q2-1 Tab 1 Schedule 1 Page 2 of 4 Board's Decision and Interim Rate Order dated September 27, 2002 (EB-20020431). 4. Enbridge has recalculated the utility price for the second quarter of Test Year 2003 using the prescribed methodology. The recalculated utility price is $259.519/103m3 ($6.886/GJ @ 37.69 MJ/m3), which varies from the current utility price by $21.556/103m3 ($0.572/GJ @ 37.69 MJ/m3) or more than 0.5¢/m3, and the former accordingly supersedes the latter as the utility price effective January 1, 2003. 5. Enbridge has used the recalculated utility price, together with the consequential effect on the prescribed commodity-related costs, as the basis for recalculating the gas supply charges for sales service, and also the delivery charges and the gas supply load balancing charges, effective as of January 1, 2003. The resultant rates would increase the total bill for a typical residential customer on system gas by $68 or 6% (approx.) annually and, for a typical residential customer on direct purchase, by $2 or 0.3% (approx.) annually. PGVA 6. Enbridge has adjusted the forecast balance in its Purchased Gas Variance Account ("PGVA") as of the end of Test Year 2003 (i.e., September 30, 2003) to account for the recalculated utility price and the consequential gas storage inventory adjustments. There were no changes in upstream transportation tolls during the first quarter of Test Year 2003 and, in consequence, Enbridge has made no further adjustment in this regard. 7. The adjusted year-end balance in the PGVA, when translated into ¢/m3 based on forecast consumption for the remainder of Test Year 2003, is 0.30¢/m3 and thus less than the threshold of 0.5¢/m3. Therefore, Enbridge is not proposing to clear the adjusted year-end balance of the PGVA at this time. Regulatory Framework 8. The regulatory framework for processing the Application and the supporting evidence is prescribed in the Settlement Proposal. Enbridge's list of interested parties is presented in Appendix B; the list includes the name(s) of the parties’ respective representative(s). 9. Enbridge is filing with the Board one copy of the Application by facsimile and 10 copies of the Application with supporting evidence in binder format by courier. Enbridge is also serving the representative(s) of each interested party with one Filed: 2002-12-04 EB-2002-0494 RP-2002-0133 Exhibit Q2-1 Tab 1 Schedule 1 Page 3 of 4 copy of the Application by facsimile and with one copy of the Application with supporting evidence (binder format) by courier. 10. The following is the prescribed regulatory framework for processing the Application: • Any responsive comments from interested parties must be filed with the Board (10 copies), and served on Enbridge and the other interested parties (one copy), on or before December 11, 2002. • Any reply comments from Enbridge must be filed with the Board (10 copies), and served on all interested parties (one copy), on or before December 18, 2002. • The Board would thereafter issue an interim order approving the appliedfor utility price, gas supply charges, and delivery and load balancing charges, or modifying them as required, and likewise the applied-for rates effective January 1, 2003. 11. Enbridge requests that the Board issue such an order on or before December 24, 2002. Enbridge would then be able to implement the resultant rates during the first billing cycle in January 2003. 12. Enbridge also requests that all documents in relation to this Application and supporting evidence, including the responsive comments of any interested party, be served on Enbridge and its counsel as follows: (a) Enbridge: Ms. Marika O. Hare Director, Regulatory Affairs Enbridge Gas Distribution Inc. Address for personal service: 500 Consumers Road Willowdale, Ontario M2J 1P8 Mailing address: P.O. Box 650 Scarborough, Ontario M1K 5E3 Telephone: (416) 753-7333 Filed: 2002-12-04 EB-2002-0494 RP-2002-0133 Exhibit Q2-1 Tab 1 Schedule 1 Page 4 of 4 Fax: Electronic access: (b) (416) 495-6072 marika.hare@cgc.enbridge.com Enbridge’s counsel: Ms. Tania H. Persad Legal Counsel, Regulatory Enbridge Gas Distribution Inc. Address for personal service and mailing (see above) Telephone: Fax: Electronic access: (416) 495-5891 (416) 495-5994 tania.persad@cgc.enbridge.com DATE December 4, 2002. Enbridge Gas Distribution Inc. Per:___________________________________ Marika O. Hare Director, Regulatory Affairs GAZIFÈRE INC. DERIVATION OF UNIT RATE IMPACT FROM PASS ON OF GAS COST INCREASE IN RATE 200 EB-2002-0494 AJUSTEMENT DU COÛT DU GAZ LINE NO. DESCRIPTION 1 Gas Supply Charge increase $ '000 2 Delivery Charge increase $ '000 3 Total increase in cost of service $ '000 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8 Col. 9 TOTAL TARIF 1 TARIF 2 TARIF 3 TARIF 4 TARIF 5 TARIF 9 2 592,8 1 061,6 1 303,6 10,3 0,0 217,4 0,0 59,3 24,8 13,9 0,1 2,3 3,8 14,4 ###### ###### ###### ###### 2,17 0,05 2,17 0,02 2 652,1 VOLUMES 103 m3 3,1 3,2 Sales Deliveries 119 283,6 182 105,7 472,9 472,9 0,0 ##### 2,17 0,03 2,17 0,03 10 000,0 10 000,0 0,0 50 659,6 UNIT RATE IMPACT cents/m3 4,1 4,2 Gas Supply Charge Delivery Charge Notes: 4,1 Line 1 divided by Line 3.1 4,2 Line 2 divided by Line 3.2 Original: 2002-12-11 2,17 0,03 2,17 0,04 2,17 0,03 GAZIFÈRE INC. COÛT DU GAZ SELON LE TARIF 200 EB-2002-0494 (1) BASÉ SUR LES VOLUMES DE L'ANNÉE TÉMOIN 2002 AJUSTEMENT DU COÛT DU GAZ Col. 1 OCT 1000 m3 54,57% 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 29 30 31 32 33 34 35 36 Col. 2 NOV Col. 3 DEC Col. 4 JAN Col. 5 FEB Col. 6 MAR Col. 7 APR Col. 8 MAY Col. 9 JUN Col. 10 JUL Col. 11 AUG Col. 12 SEP 3 Col. 13 TOTAL LF: 1 1 1 1 1 1 1 1 1 1 1 1 919,3 919,3 919,3 919,3 919,3 919,3 919,3 919,3 919,3 919,3 919,3 919,3 54,57% FIRST 15 15 8 912,5 13 107,2 13 789,5 13 789,5 13 789,5 13 789,5 13 789,5 13 789,5 10 533,5 9 817,1 9 193,7 9 059,0 143 360,0 NEXT 10 25 0,0 0,0 4 587,9 9 193,0 9 193,0 6 544,6 6 922,1 1 288,8 0,0 0,0 0,0 0,0 37 729,4 OVER 25 25 0,0 0,0 0,0 836,8 1 182,6 0,0 0,0 0,0 0,0 0,0 0,0 0,0 2 019,3 0,0 0,0 0,0 2 003,2 667,7 5 341,8 0,0 0,0 0,0 0,0 0,0 0,0 8 012,7 2 682,5 3 248,8 4 196,0 4 459,6 4 317,9 3 686,6 9 083,2 8 043,8 5 992,8 6 038,0 5 737,3 5 669,1 63 155,7 CURTAILMENT T-SERVICE TOTAL DELIVERIES 8 912,5 13 107,2 18 377,4 23 819,3 24 165,1 20 334,1 20 711,6 15 078,3 10 533,5 9 817,1 9 193,7 9 059,0 183 108,6 TOTAL SALES 6 230,1 9 858,3 14 181,3 19 359,6 19 847,2 16 647,5 11 628,4 7 034,5 4 540,7 3 779,1 3 456,4 3 389,9 119 953,0 T-SERVICE RECEIPTS 2 682,5 3 248,8 4 196,0 4 459,6 4 317,9 3 686,6 9 083,2 8 043,8 5 992,8 6 038,0 5 737,3 5 669,1 63 155,7 CHECK 8 912,5 13 107,2 18 377,4 23 819,3 24 165,1 20 334,1 20 711,6 15 078,3 10 533,5 9 817,1 9 193,7 9 059,0 183 108,6 REVENUE CALCULATION RATES - ANALYSIS - 2002 Update EB-2002-0494 WINTER SUMMER 0,0000 0,0000 0 0 0 0 0 0 0 0 0 0 0 0 DMD 18,0000 18,0000 165 474 165 474 165 474 165 474 165 474 165 474 165 474 165 474 165 474 165 474 165 474 165 474 1 985,7 1ST 0,4390 0,3827 34 108 50 161 60 536 60 536 60 536 60 536 52 772 52 772 40 312 37 570 35 184 34 669 579,7 2ND 0,3140 0,2827 0 0 14 406 28 866 28 866 20 550 19 569 3 643 0 0 0 0 115,9 3RD 0,3418 0,2891 0 0 0 2 860 4 042 0 0 0 0 0 0 0 6,9 CURTAILMENT -1,0000 -1,0000 0 0 0 (20 032 ) 0 0 0 0 0 0 (80,1) 199 582 215 635 240 416 193 142 237 815 221 890 205 786 203 044 200 658 200 143 2 608,1 gas b/s 21,3579 21,3579 332 652 526 384 757 208 888 890 620 895 375 607 242 448 201 784 184 552 181 003 6 404,9 3,8875 3,8875 346 474 509 542 714 420 790 487 805 165 586 168 409 490 381 639 357 403 352 169 7 118,3 21,3772 21,3772 998 859 728 000 605 899 554 157 543 499 19 231,9 gas sys TOTAL REVENUE 0,0000 237 704 (6 677 ) 252 241 ########## ########## 925 974 939 417 (53 418 ) ########## ########## ########## ########## ########## ########## ########## 1 877 567 ########## ########## ########## ########## ########## ########## ########## ########## ########## ########## ########## 35 363,2 1 877 567 ########## ########## ########## ########## ########## ########## ########## ########## ########## ########## ########## 35 363,2 0 1 877 567 0 0 0 0 0 0 0 0 0 0 0 ########## ########## ########## ########## ########## ########## ########## ########## ########## ########## ########## 0,0 35 363,2 1 740 066 ########## ########## ########## ########## ########## ########## ########## ########## ########## ########## ########## 32 711,1 NGT RATES: 0,0000 EB-2002-0494 37 38 RATES: EB-2002-0431 39 40 Écart entre EB-2002-0494 et EB-2002-0431 Notes: (1) Voir le Tarif 200 en vigueur le 1er janvier 2003 inclus à la requête EB-2002-0494 déposée le 4 décembre 2002. Original: 2002-12-11 2 652,1 GAZIFÈRE INC. COÛT DU GAZ SELON LE TARIF 200 EB-2002-0431 BASÉ SUR LES VOLUMES DE L'ANNÉE TÉMOIN 2002 AJUSTEMENT DU COÛT DU GAZ Col. 1 OCT 1000 m3 54,57% 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 29 30 31 32 33 34 35 36 Col. 2 NOV Col. 3 DEC Col. 4 JAN Col. 5 FEB Col. 6 MAR Col. 7 APR Col. 8 MAY Col. 9 JUN Col. 10 JUL Col. 11 AUG Col. 12 SEP 3 Col. 13 TOTAL LF: 1 1 1 1 1 1 1 1 1 1 1 1 919,3 919,3 919,3 919,3 919,3 919,3 919,3 919,3 919,3 919,3 919,3 919,3 54,57% FIRST 15 15 8 912,5 13 107,2 13 789,5 13 789,5 13 789,5 13 789,5 13 789,5 13 789,5 10 533,5 9 817,1 9 193,7 9 059,0 143 360,0 NEXT 10 25 0,0 0,0 4 587,9 9 193,0 9 193,0 6 544,6 6 922,1 1 288,8 0,0 0,0 0,0 0,0 37 729,4 OVER 25 25 0,0 0,0 0,0 836,8 1 182,6 0,0 0,0 0,0 0,0 0,0 0,0 0,0 2 019,3 0,0 0,0 0,0 2 003,2 667,7 5 341,8 0,0 0,0 0,0 0,0 0,0 0,0 8 012,7 T-SERVICE 2 682,5 3 248,8 4 196,0 4 459,6 4 317,9 3 686,6 9 083,2 8 043,8 5 992,8 6 038,0 5 737,3 5 669,1 63 155,7 TOTAL DELIVERIES 8 912,5 13 107,2 18 377,4 23 819,3 24 165,1 20 334,1 20 711,6 15 078,3 10 533,5 9 817,1 9 193,7 9 059,0 183 108,6 TOTAL SALES 6 230,1 9 858,3 14 181,3 19 359,6 19 847,2 16 647,5 11 628,4 7 034,5 4 540,7 3 779,1 3 456,4 3 389,9 119 953,0 T-SERVICE RECEIPTS 2 682,5 3 248,8 4 196,0 4 459,6 4 317,9 3 686,6 9 083,2 8 043,8 5 992,8 6 038,0 5 737,3 5 669,1 63 155,7 CHECK 8 912,5 13 107,2 18 377,4 23 819,3 24 165,1 20 334,1 20 711,6 15 078,3 10 533,5 9 817,1 9 193,7 9 059,0 183 108,6 CURTAILMENT REVENUE CALCULATION RATES - EB-2002-0431 WINTER ANALYSIS - 2002 Update SUMMER 0,0000 0,0000 0 0 0 0 0 0 0 0 0 0 0 0 DMD 18,0000 18,0000 165 474 165 474 165 474 165 474 165 474 165 474 165 474 165 474 165 474 165 474 165 474 165 474 1 985,7 1ST 0,4244 0,3681 32 807 48 248 58 523 58 523 58 523 58 523 50 759 50 759 38 774 36 137 33 842 33 346 558,8 2ND 0,2994 0,2681 0 0 13 736 27 524 27 524 19 594 18 558 3 455 0 0 0 0 110,4 3RD 0,3272 0,2745 0 0 0 2 738 3 869 0 0 0 0 0 0 0 6,6 CURTAILMENT -1,0000 -1,0000 0 0 0 (20 032 ) 0 0 0 0 0 0 (80,1) 198 281 213 722 237 733 234 227 248 713 190 173 234 791 219 688 204 248 201 611 199 316 198 820 2 581,3 gas b/s 19,1989 19,1989 299 026 473 173 680 564 929 009 952 410 798 935 558 131 337 638 217 939 181 386 165 896 162 706 5 756,8 3,8685 3,8685 344 781 507 052 710 928 921 448 934 825 786 624 801 130 583 304 407 488 379 773 355 657 350 448 7 083,5 19,2182 19,2182 897 979 1 420 947 2 044 044 2 790 429 2 860 701 2 399 515 1 676 077 1 013 933 654 475 544 706 498 189 488 608 17 289,6 1 740 066 2 614 894 3 673 269 4 875 113 4 996 649 4 175 247 3 270 129 2 154 563 1 484 151 1 307 477 1 219 058 1 200 582 32 711,1 1 740 066 2 614 894 3 673 269 4 875 113 4 996 649 4 175 247 3 270 129 2 154 563 1 484 151 1 307 477 1 219 058 1 200 582 32 711,1 0 1 740 066 0 2 614 894 0 3 673 269 0 4 875 113 0 4 996 649 0 4 175 247 0 3 270 129 0 2 154 563 0 1 484 151 0 1 307 477 0 1 219 058 0 1 200 582 0,0 32 711,1 gas sys TOTAL REVENUE NGT RATES: 0,0000 EB-2002-0431 0,0000 (6 677 ) 37 Notes: Original: 2002-12-11 (1) Voir GI-32, requête 3464-2001, document 1.1, page 1 de 1, ligne 36. (53 418 ) (1) S:\budadmin\cause\cause2000\Gazifère - Suivi D-2002-283 (pass-on 1 jan 2003) 17-12-02.xls\autres composantes GAZIFÈRE INC. OTHER COMPONENTS OF THE RATE AJUSTEMENT DU COÛT DU GAZ Line no Description Average unit rate Unit of last block of load balancing the proposed rate rate ¢/m3 ¢/m3 1 2 1 Billing of the deficiency in minimum annual volume 2 Rate 3 3 Rate 4 4 5 Proposed rate of other components ¢/m3 3=1+2 11,27 (4,90 ) 6,37 load factor less or equal to 70% 9,14 (4,92 ) 4,22 load factor higher than 70% 8,14 (4,92 ) 3,22 6 Rate 5 7,03 (5,17 ) 1,86 7 Rate 9 4,99 (3,99 ) 1,00 8 Maximum charge on a prorated basis of any annual minimum bill incurred by Gazifère 9 Rate 3 10 Rate 4 11,27 s/o 11,27 11 load factor less or equal to 70% 9,14 s/o 9,14 12 load factor higher than 70% 8,14 s/o 8,14 13 Rate 5 7,03 s/o 7,03 14 Rate 9 4,99 s/o 4,99 Line no Description 15 Overrun Rate 16 Rates 3, 4, 5, 6, 8 and 9 17 T-Service credit 18 TCPL Original: 2002-12-11 Rate as per Rate 200 Proposed EB-2002-0494 at rate at 37.69 MJ/m3 37.89 MJ/m3 37,3241 37,52 4,3449 4,37 RATE NUMBER: 200 Rate for Service Rights per cubic metre of Daily Capacity Repurchase Quantity per day of curtailment: 1,0 ¢/m³ 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. As of October 1, 2001, 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 Mark et 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". 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. For any location presently served or any new Applicant for service pursuant to this Rate Schedule in these areas, the Company shall purchase the rights to take service hereunder at 125% of the above-stated Rate for Service Rights. 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 maximum Gas Supply Charge stated in Rate 320. On the second and subsequent occasions in a contract year when the Applicant takes Unauthorized Demand Overrun Gas, the Contract Demand shall be adjusted to the actual maximum daily volume taken and the Demand Charges stated above shall apply for the whole contract year, including retroactively if necessary. Should the Applicant fail to curtail its use of natural gas within the contracted time period or as ordered by the Company, the rate shall be increased by: 25,0 ¢/m³ 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): Sales and Western Canada Buy/Sell T-Service, Ontario Buy/Sell and Western Buy/Sell (Applicant provides fuel) 13,8491 ¢/m³ 0,2551 ¢/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, 2003 under Sales Service, including Buy/Sell Arrangements, and Transportation Service. This rate schedule is effective January 1, 2003 and replaces the identically numbered rate schedule that specifies, as the Effective Date, October 1, 2002 and that indicates, as the Board Order, EB-2002-0431. EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2003 January 1, 2003 EB-2002-0494 October 1, 2002 Page 2 of 2 Handbook 28 RATE NUMBER: 320 BACKSTOPPING SERVICE APPLICABILITY: To any Applicant whose delivery of natural gas to the Company for transportation to a Terminal Location has been interrupted prior to the delivery of such gas to the Company. CHARACTER OF SERVICE: The volume of gas available for backstopping in any day shall be determined by the Company exercising its sole discretion. If the aggregate daily demand for service under this Rate Schedule exceeds the supply available for such day, the available supply shall be allocated to firm service customers on a first requested basis and any balance shall be available to interruptible customers on a first requested basis. RATE: The rates applicable in the circumstances contemplated by this Rate Schedule, in lieu of the Gas Supply Charges specified in any of the Company's other Rate Schedules pursuant to which the Applicant is taking service, shall be as follows: Billing Month April December to to November March Gas Supply Charge Per cubic metre of gas sold 24,8827 ¢/m³ 24,5531 ¢/m³ provided that if upon the request of an Applicant, the Company quotes a rate to apply to gas which is delivered to the Applicant at a particular Terminal Location on a particular day or days and to which this Rate Schedule is applicable (which rate shall not be less than the Company's avoided cost in the circumstances at the time nor greater than the otherwise applicable rate specified above), then the Gas Supply Charge applicable to such gas shall be the rate quoted by the Company. EFFECTIVE DATE: To apply to bills rendered for gas consumed by customers on and after January 1, 2003 under Sales Service, including Buy/Sell Arrangements, and Transportation Service. This rate schedule is effective January 1, 2003 and replaces the identically numbered rate schedule that specifies, as the Effective Date, October 1, 2002 and that indicates, as the Board Order, EB-2002-0431. EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2003 January 1, 2003 EB-2002-0494 October 1, 2002 Page 1 of 1 Handbook 39 RIDER: A 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 will not 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. 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, 2003. This rate schedule is effective January 1, 2003 and replaces the identically numbered rate schedule that specifies, as the Effective Date, October 1, 2002 and that indicates, as the Board Order, EB-2002-0431. EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2003 January 1, 2003 EB-2002-0494 October 1, 2002 Page 2 of 2 Handbook 48 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. The Company's rates include an annual FT-WACOG of 25.6738 ¢/m³ of gas containing 37.69 MJ/m³. 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. The forecast annual FT-WACOG referenced above includes an average of 1.18 ¢/m³ for fuel. EFFECTIVE DATE: To apply to bills rendered for gas delivered on and after January 1, 2003. This rate schedule is effective January 1, 2003 and replaces the identically numbered rate schedule that specifies, as the Effective Date, October 1, 2002 and that indicates, as the Board Order, EB-2002-0431. EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2003 January 1, 2003 EB-2002-0494 October 1, 2002 Page 1 of 1 Handbook 49 RIDER: C GAS INVENTORY ADJUSTMENT RIDER The following adjustment is applicable to all gas sold or delivered during the period January 1, 2003 to September 30, 2003 pursuant to the EB-2002-0494 Board Order. 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 0,0000 Rate 310 N/A 0,0000 EFFECTIVE DATE: IMPLEMENTATION DATE: BOARD ORDER: REPLACING RATE EFFECTIVE: January 1, 2003 January 1, 2003 EB-2002-0494 October 1, 2002 Page 1 of 1 Handbook 50