Union to Clear Amounts for 2011 with April Rate Adjustment

March 2013

Union Gas has received approval from the Ontario Energy Board to clear amounts for 2011 that have been recorded in cost variance and other deferral accounts. An amount for earnings sharing as a result of the operation of Union’s incentive rate mechanism during 2011 will also be cleared. The clearance will coincide with Union’s April 1, 2013 quarterly rate adjustment.

For general service customers (Rate 01 and Rate 10 in the North and East, M1 and M2 in the South), the clearance will be accomplished through an amount included in the Price Adjustment line on bills for a 6-month period starting April 1, 2013. For contract customers, there will be a one-time adjustment on bills for April 2013, calculated by multiplying the customer’s actual consumption volumes for 2011 by the appropriate unit rate as set out below for certain of the rate classes (brackets indicate a credit). However, contract customers with an amount owing will have the option of paying either immediately in full or in a number of equal monthly instalments up to a maximum of six. This provision was part of the OEB-accepted agreement between Union and the parties involved in this proceeding. Contract customers in a payment position will receive an e-mail from their account manager at Union specifying the amount owing relating to the 2011 clearance and the payment options. Customers will have to respond by return e-mail if they would like to pay in installments rather than in one lump sum. If customers do not explicitly specify their choice, then the default option will be the usual one-time adjustment.

NOTE: For Rate 20 bundled transportation and Rate 25 customers, there will also be a credit related to transportation.  Any Rate 20T and Rate 100T customers using bundled storage service in 2011 will see a charge related to that service.

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