Enbridge Gas Distribution

Transcription

1 Enbridge Gas Distribution Presentation to Township of McNab/Braeside - July 19, 2016 Michael Wagle - Director Network Operations. Eastern Region Steve McGill - Sr. Manager, Business Development Mark Wilson - Sr. Advisor, Municipal Affairs 1

2 Enbridge Gas Distribution (EGD) Distribution Retail Customers: 2.1 million (*92% Residential) Annual Throughput: 440 BCF Distribution Pipe: 37,000 km Markets Served: GTA, Barrie, Ottawa, Niagara Storage Capacity: 103 BCF Canada s largest Natural Gas Distribution company based in Ontario with 160 years of experience in safe and reliable service Approximately 2,000 employees in Ontario plus thousands of indirect employees 2

3 The Importance of Natural Gas Infrastructure Peak Natural Gas Demand Avg Natural Gas Demand Ontario Energy Delivery by Infrastructure Type 34,193 84,261 Primary Energy Use in Ontario (2013) 4% 2% 17% 42% Peak Electrcity Demand Avg Electrcity Demand 15,959 24,706 MW On peak heating days, natural gas storage reserves deliver energy equivalent of 90 nuclear reactors 3 35% Petroleum Products Others Primary Electricity Natural Gas Natural Gas Liquids

4 Economic and Environmental Opportunities Affordable - Natural gas supplies has a significant competitive advantage over other fuels. Potential for annual savings of $1,400 to $2,400 per customer compared to fuel oil, electricity and propane for home heating / water heating Clean - Natural gas is a clean source of energy for Ontario with about 50% fewer greenhouse gas emissions (GHG) than coal-generation, 25% fewer emissions than home heating oil; and up to 20% fewer emissions than transportation fuels Reliable & Resilient - The natural gas system is extremely reliable and has never experienced a major outage. Provides seamless 24/7 service to customers year round through robust underground infrastructure that is protected from extreme weather 4

5 Enbridge in McNab/Braeside 63,415 metres of main 4,181 customers $ 47,002 paid in property taxes (2014) Safe and reliable delivery of natural gas to McNab/Braeside since

6 For the good of the community Our motto for 160 years In 2015, Enbridge invested over $19 million in more than 750 community-strengthening initiatives across North America that are aligned to our three focus areas (Environment, Community and Well-being) such as: Habitat for Humanity, United Way, Enbridge Ride to Conquer Cancer, Trees Ontario; and Project Zero and Project Assist Since 1987 Enbridge s free Community Events service has supported more than 20,000 festivals, 6 cultural events, community gatherings and celebrations that span the many communities we serve.

7 Public and Pipeline Safety Communication: Working with stakeholders to ensure safe practices; i.e. promoting the Ontario One Call program and improving public awareness of how to use natural gas safely and identify and prevent any potential safety issues. Emergency Response: Providing first responder training and mock emergency exercises within our franchises. Smell Gas? Safety Tips Emergency Preparedness CO Safety Before You Dig visit 7

8 Helping Ontario Reach Its Economic & Environmental Goals 1. Demand Side Management (Conservation) 2. Natural Gas A cleaner transportation option 3. Greening the Natural Gas Grid & Managing Energy Better Renewable Natural Gas and Combined Heat & Power 8

9 Successes in DSM ( ) billion m 3 cumulative gas savings 18 million tonnes CO 2 e cumulative emission reductions 4 million homes served by natural gas system for an entire year 3.5 million cars removed from Ontario roads for a full year

10 Natural Gas for Transportation Natural Gas Vehicles in the medium and heavy duty classes can reduce fuel costs (~40%) compared to diesel and gasoline Natural Gas also reduces greenhouse gas (GHG) emissions (up to 25%) EGD operates Canada s largest natural gas fleet which results in fuel savings of over $1 million annually 10

11 Greening the Natural Gas Grid & Managing Energy Better Enbridge Gas Distribution s Initiatives Powering Ontario on Waste partnering with municipal landfills and the agriculture sector to add home-grown renewable natural gas (RNG) to the province s system Combined Heat & Power (CHP) allow large institutions, hospitals and condo buildings to generate electricity alongside their boiler and heating systems to reduce energy costs Power to Gas converts electricity into hydrogen and oxygen. The hydrogen is stored and reintroduced as on-demand electricity or injected into the natural gas grid as a carbon offset 11

12 Natural Gas Rates and Expansion 12

13 How we are regulated Regulated by the Ontario Energy Board to protect existing ratepayers and the public interest We are not allowed to earn a profit on the gas supply the price paid by Enbridge on the open market is passed through to customers with no markup the same with the cost of transportation to our market The Board established guidelines for the expansion of natural gas service in its EBO 188 Report. The intent of EBO 188 was to facilitate the expansion of natural gas service while holding other customers harmless from the cost of new connections. This means that over the life of the projects, connected customers will pay the entire costs (through rates and a capital contribution if required) to protect other customers from cross-subsidization. 13 Understanding Natural Gas Rates Video

14 Natural Gas Expansion Introduction Enbridge Gas Distribution has been exploring the possibility of expanding its distribution system to different areas across Ontario that currently do not have natural gas service Some communities, based on their proximity to our existing system, represent a great opportunity to bring clean, reliable and affordable natural gas to more homes and businesses. Access to natural gas has the ability to: Leverage the natural gas service to attract new industry and help create jobs; Create more affordable commercial transportation and agriculture options; and, Offer lower energy prices to residents. Enbridge has proceeded with the steps that are involved in the process of extending gas service to new communities (market surveys, route selection, environmental assessments, preliminary design and costing and gaining the approval of the Ontario Energy Board) 14

15 Natural Gas Expansion Why Now? Government Policy to Expand Natural Gas Service Ontario Government s 2013 Long-Term Energy Plan Commitment of up to $200 million in loans and an additional $30 million in grants to assist the extension of natural gas service to currently un-served communities (expected in 2017/18 timeframe) Feb 2015: Ontario Energy Board (OEB) issued a letter stating that it will hear requests for regulatory flexibility or appropriate exemptions in the context of an application made for approvals pertaining to expansion projects. Jan 2016: OEB scheduled generic hearing on its own motion (EB ) to consider mechanisms (i.e. funding) to promote expansion of natural gas service to unserved areas of the province 15

16 Scope of the current OEB Proceeding (EB ) Issues that the OEB seeks to address, include: What is considered a community in the context of this proceeding? Surcharges from customers of new communities to improve the feasibility of potential community expansion projects? Changes to Municipal Franchise Agreements and Certificates of Public Convenience and Necessity to reduce barriers to natural gas expansion? What is the impact of the Ontario Government s proposed cap and trade program on the estimated savings? How should the OEB incorporate the Ontario Government's recently announced loan and grant programs into the economic feasibility analysis? 16

17 OEB System Expansion Proceeding Timeline July 2015 Union Gas file application to OEB Jan 2016 OEB decided that policy issues will be dealt in a generic proceeding EB Mar 21st 2016 Enbridge files proposal to OEB under EB Nov 2015 OEB decided to separate Policy Issue from LTC portion Invited other parties to file evidence Mar 2016 OEB issued 2 nd procedural order with list of issues and schedule Fall 2016 EB decision expected 17

18 Questions? Contact Mark Wilson at or 18