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Home My WebLink About2024-10-25Clarftwn Electronic Council Communications Information Package Date: October 25, 2024 Time: 12:00 PM Location: ECCIP is an information package and not a meeting. Description: An ECCIP is an electronic package containing correspondence received by Staff for Council's information. This is not a meeting of Council or Committee. Alternate Format: If this information is required in an alternate format, please contact the Accessibility Coordinator, at 905-623-3379 ext. 2131. Members of Council: In accordance with the Procedural By-law, please advise the Municipal Clerk at clerks@clarington.net, if you would like to include one of these items on the next regular agenda of the appropriate Standing Committee, along with the proposed resolution for disposition of the matter. Items will be added to the agenda if the Municipal Clerk is advised by Wednesday at noon the week prior to the appropriate meeting, otherwise the item will be included on the agenda for the next regularly scheduled meeting of the applicable Committee. Members of the Public: can speak to an ECCIP item as a delegation. If you would like to be a delegation at a meeting, please visit the Clarington website. Electronic Council Communications Information Package (ECCIP) October 25, 2024 Pages 1. Region of Durham Correspondence 1.1 Request Regarding Enhancing Shelter Support for Women and Survivors 3 of Intimate Partner Violence - October 25, 2024 1.2 Request Regarding Harassment of Elected Local Government Officials - 6 October 25, 2024 1.3 Requesting Immediate Federal Government Support for Asylum 8 Claimants in Municipalities - October 25, 2024 1.4 Requesting Federal Government Support for Food Banks - October 25, 11 2024 2. Durham Municipalities Correspondence 3. Other Municipalities Correspondence 3.1 Town of the Blue Mountains - Ontario Good Roads Recommendation - 14 October 21, 2024 4. Provincial / Federal Government and their Agency Correspondence 4.1 Honourable Graydon Smith, Minister of Natural Resources, Regarding 17 Illegal Fishing - October 23, 2024 4.2 Honourable Stephen Lecce, Minister of Energy and Electrification - 18 Ontario's Affordable Energy Future: The Pressing Case for More Power - October 23, 2024 5. Miscellaneous Correspondence 5.1 Linda J. Laliberte, CAO/Secretary-Treasurer - Ganaraska Region 20 Conservation Authority - 2025 Preliminary Budget - October 18, 2024 5.2 Enbridge Gas Inc. - 2025 Federal Carbon Pricing Program (FCPP) 59 Application - OEB Notice - October 25, 2024 Page 2 October 25, 2024 Honourable Mark Holland MP, Ajax 100 Old Kingston Rd Ajax, ON L1T 2Z5 Dear Minister Holland: RE: Request Regarding Enhancing Shelter Support for Women and The Regional Survivors of Intimate Partner Violence, Our File: C00 Municipality of Durham Council of the Region of Durham, at its meeting held on October 23, Corporate Services 2024, passed the following resolution: Department — Legislative Services "Whereas there is a nationwide intimate partner violence (IPV) crisis, Division in which more than 4 in 10 (6.2 million) women and 1 in 3 men have experienced intimate partner violence, and rates increased 19% 605 Rossland Rd. E. between 2014 and 2022; Level 1 Whereas 78% of victims of police -reported intimate partner violence in PO Box 623 2022 were women and girls, and in 2019 rates were 3.5 times higher Whitby, ON L1 N 6A3 among women than men; Canada 905-668-7711 Whereas intimate partner violence, in 2009, was estimated to cost 1-800-372-1102 $7.4 billion annually to the public system, impacting municipal budgets for public safety and housing; durham.ca Whereas rural, remote, and northern communities experience Alexander Harras disproportionate rates of IPV, with risk of IPV 75% higher for women in M.P.A. rural communities than women in urban communities, and 73% of Director of survivors in rural communities at high risk of being in severe or Legislative Services extreme danger of being killed; & Regional Clerk Whereas Indigenous women are 3 times more likely to experience IPV than non -Indigenous women, and are 8 times more likely to be murdered by intimate partners than non -Indigenous women, because of the intersections between colonialism, racism, and misogyny; Whereas IPV is a phenomenon which affects Black and racialized women, women with disabilities, and 2SLGBTQIA+ people disproportionately; Whereas women's shelters nationwide consistently struggle with permanent funding to provide essential transitional, family, and permanent housing solutions for women fleeing IPV, and as COVID- oriented funding expires and piecemeal efforts to fund women's If you require this information in an accessible format, please contact Eamonn.Rodgers@durham.ca or call 1-800-372-1102 extension 3677. Page 3 shelter systems result in women experiencing IPV being continually at risk; Whereas the federal government has made gender -based violence (GBV) and IPV priorities across ministries and agencies through the National Strategy to Address Gender -Based Violence and the National Action Plan to End Gender -based Violence, signing bilateral agreements with provinces and territories, but gaps remain; Now therefore be it resolved: A) That the Regional Municipality of Durham calls on the federal government to create a permanent fund, open to local governments and community organizations, for the construction of shelters and transitional housing for women and survivors of intimate partner violence, including housing appropriate for Indigenous, 2SLGBTQIA+ people, and persons with disabilities, with a dedicated rural, remote, and northern (RRN) stream; B) That the Regional Municipality of Durham calls on the federal government to work with the provinces and territories to provide permanent operational funding, open to local governments and community organizations, for shelters, transitional housing, and supportive housing for women and survivors of intimate partner violence, including Indigenous, 2SLGBTQIA+ people, and persons with disabilities; and C) That a copy of this resolution be forwarded to Durham Region Federal MPs, and relevant ministers, Provincial MPPs and relevant ministers, local area municipalities and local non- profits supporting victims of IPV." Alexander Harras, Director of Legislative Services & Regional Clerk AH/sd c: J. Jivano, MP, Durham J. Schmale, MP, Haliburton/Kawartha Lakes/Brock P. Lawrence, MP, Northumberland/ Peterborough South C. Carrie, MP, Oshawa J. O'Connell, MP, Pickering/Uxbridge R. Turnbull, MP, Whitby Hon. T. McCarthy, Minister of Public and Business Service Delivery, MPP, Durham P. Barnes, MPP, Ajax Page 4 L. Scott, MPP, Haliburton/Kawartha Lakes/Brock D. Piccini, MPP, Northumberland/Peterborough South J. French, MPP, Oshawa P. Bethlenfalvy, MPP, Pickering/Uxbridge L. Coe, MPP, Whitby J. Grossi, Clerk, Town of Ajax F. Lamanna, Clerk, Township of Brock J. Gallagher, Clerk, Municipality of Clarington M. Medeiros, Clerk, City of Oshawa S. Cassel, Clerk, City of Pickering R. Walton, Clerk, Township of Scugog D. Leroux, Clerk, Township of Uxbridge C. Harris, Clerk, Town of Whitby I. Khalaf, Service Director, Durham Children's Aid Society L. Fernandes-Heaslip, Community Representative, Brock Community Health Centre R. Spigarelli, Manager, Safety Network E. Pierce, Executive Director, Catholic Family Services Durham J. Clearwater, VAW Counsellor, Niijkiwendidaa Anishnaabekwewag Services Circle A. Crawford, Dnaagdawenmag Binnoojiiyag Child & Family Services K. Sansom, Durham Mental Health E. Enyolu, Executive Director, Women's Multi -Cultural Resource and Counselling Centre G. Broderick, Executive Director, Durham Rape Crisis Centre L. Burch, Executive Director, Bethesda House V. Falcon, Executive Director, Herizon House S. McCormack, Executive Director, Denise House S. Groen, Executive Director, Y's WISH Shelter K. Sansom, Durham Housing B. Bain, Executive Director, Frontenac Youth Services K. MacNeil, Executive Director, Victim Services Durham Region C. Barkwell, Executive Director, Luke's Place J. St. Louis, Case Manager, Canadian Mental Health Association M. Toma, Supervisor, Community Development Council of Durham N. Crow, Executive Director, Durham Family Court Clinic J. MacKinnon, Durham Elder Abuse Network B. Porter, Coordinator, The Violence Prevention Coordinating Council of Durham Page 5 October 25, 2024 Honourable Mark Holland MP, Ajax 100 Old Kingston Rd Ajax, ON L1T 2Z5 Dear Minister Holland: RE: Request Regarding Harassment of Elected Local Government The Regional Officials, Our File: C00 Municipality of Durham Council of the Region of Durham, at its meeting held on October 23, Corporate Services 2024, passed the following resolution: Department — Legislative Services "Whereas in recent years, there has been an alarming rise in incidents Division of harassment, intimidation and acts of violence aimed at elected local government officials, compounding the already strenuous work 605 Rossland Rd. E. conditions faced by many local leaders and hindering their retention; Level 1 Whereas women, particularly Black and racialized women, are PO Box 623 disproportionately targeted by violence and harassment toward Whitby, ON L1 N 6A3 elected officials; Canada 905-668-7711 Whereas increasing the number of elected women, Black and 1-800-372-1102 racialized, and 2SLGBTQIA+ representatives in Canada is a priority for local governments and the federal government; durham.ca Whereas severe abuse, both online and in -person, has the potential to Alexander Harras discourage underrepresented groups from joining and remaining M.P.A. engaged in local politics, limiting the diversity of opinion needed in Director of healthy democracies; Legislative Services & Regional Clerk Whereas all elected officials have an ability to show leadership on this issue by modeling behaviour, and should always strive to elevate debate, embrace differences of opinion, disagree respectfully and focus on issues of policy and substance; Now therefore be it resolved: A) That the Regional Municipality of Durham request that the federal government work with provinces, territories, and local governments, including through the Federation of Canadian Municipalities, to identify and implement measures to protect elected local government officials, their family members, and staff — especially women, members of Black and racialized communities, and 2SLGBTQIA+ individuals, persons with If you require this information in an accessible format, please contact Eamonn.Rodgers@durham.ca or call 1-800-372-1102 extension 3677. Page 6 disabilities, and Indigenous people — from harassment, intimidation, and threats, thereby reinforcing a unified front to safeguard democracy; B) That the Region of Durham calls on all elected officials of all orders of government to lead by example, demonstrating civility and mutual respect for their political counterparts; and C) That a copy of this resolution be forwarded to Durham Region Federal MPs, Provincial MPPs, the Minister of Municipal Affairs and Housing, the Integrity Commissioner of Ontario and local area municipalities." Alexander Harras, Director of Legislative Services & Regional Clerk AH/sd c: J. Jivano, MP, Durham J. Schmale, MP, Haliburton/Kawartha Lakes/Brock P. Lawrence, MP, Northumberland/ Peterborough South C. Carrie, MP, Oshawa J. O'Connell, MP, Pickering/Uxbridge R. Turnbull, MP, Whitby P. Barnes, MPP, Ajax Hon. T. McCarthy, Minister of Public and Business Service Delivery, MPP, Durham L. Scott, MPP, Haliburton/Kawartha Lakes/Brock D. Piccini, MPP, Northumberland/Peterborough South J. French, MPP, Oshawa P. Bethlenfalvy, MPP, Pickering/Uxbridge L. Coe, MPP, Whitby Hon. P. Calandra, Minister of Municipal Affairs and Housing J.D. Wake, Integrity Commissioner of Ontario J. Grossi, Clerk, Town of Ajax F. Lamanna, Clerk, Township of Brock J. Gallagher, Clerk, Municipality of Clarington M. Medeiros, Clerk, City of Oshawa S. Cassel, Clerk, City of Pickering R. Walton, Clerk, Township of Scugog D. Leroux, Clerk, Township of Uxbridge C. Harris, Clerk, Town of Whitby Page 7 October 25, 2024 Honourable Mark Holland MP, Ajax 100 Old Kingston Rd Ajax, ON L1T 2Z5 Dear Minister Holland: RE: Requesting Immediate Federal Government Support for The Regional Asylum Claimants in Municipalities, Our File: C00 Municipality of Durham Council of the Region of Durham, at its meeting held on October 23, Corporate Services 2024, passed the following resolution: Department — Legislative Services "Whereas municipalities have been at the forefront of supporting Division asylum claimants and refugees and providing essential settlement and housing services; 605 Rossland Rd. E. Whereas the rapid and sharp increase of asylum claims in Toronto, Level 1 Montreal, Hamilton and other municipalities, particularly in the Greater PO Box 623 Toronto and Hamilton Area (GTHA), are putting municipal Whitby, ON L1 N 6A3 governments under significant pressure; Canada 905-668-7711 Whereas without federal action, asylum claimants will not have 1-800-372-1102 permanent shelter and housing options once they leave temporary accommodations, and the current crisis will continue to grow; durham.ca Whereas refugees and asylum claimants make up over 40% of Alexander Harras Hamilton's population in shelters, and is creating massive pressure on M.P.A. Hamilton's already overwhelmed shelter system that is under Director of resourced to meet the unique and complex needs of asylum Legislative Services claimants; & Regional Clerk Whereas the supports provided to municipalities to receive asylum claimants are often short-term and focused on emergency response and shelter, but do not ensure permanent settlement and housing options for asylum claimants, including a focus on homeless prevention and long-term stability; Whereas the crisis of asylum claimants has inextricable links to the housing, homelessness and mental health crises in Canada and the immense pressure on municipal shelter, transitional and supportive housing systems; Whereas equity -deserving communities are disproportionately represented in asylum claimant populations seeking immediate If you require this information in an accessible format, please contact Eamonn.Rodgers@durham.ca or call 1-800-372-1102 extension 3677. Page 8 necessary support which can also lead to further stigmatization and experiences of racism, discrimination, and harassment; Whereas action on behalf of the federal government and investing in supports to combat racism, specifically anti -Black racism, is imperative as asylum seekers commonly face racism and other forms of discrimination and hate; Whereas municipalities across Canada are committed to fostering diverse, inclusive and welcoming communities for all individuals seeking asylum and tackling anti -Black racism and other forms of racism; Whereas Hamilton, Toronto and other municipalities in the Greater Toronto Hamilton Area (GTHA) have been advocating for additional federal supports for asylum claimants over the past year; Now therefore be it resolved: That the Regional Municipality of Durham strongly urge the federal government to take immediate action to support asylum claimants in Canadian municipalities by taking the following actions: A) Immediately provide financial support and reimbursements directly to municipalities to address the immediate short-term needs of asylum claimants and refugees through top -ups to the Canada Housing Benefit and the Interim Housing Assistance Program (IHAP); B) An ongoing commitment of Interim Housing Assistance Program (IHAP) funding to address estimated annual costs for refugees in 2024, and commit to future funding until the demand for shelter returns to sustainable levels; C) Collaborate with municipal governments to develop a long-term strategy to enhance capacity of local governments to effectively support asylum claimants and refugees, including through the development of tripartite agreements between municipalities, provinces and territories and the federal government to enhance cross -government coordination in providing immediate supports to asylum claimants; D) Recognizing that the rise in asylum seeking populations pursuing refuge in Canada is occurring in the midst of a housing crisis, provide additional funding through National Housing Strategy programs and the Canada Housing Benefit to support asylum claimants in the medium- and long-term; E) Broaden the eligibility for federally -funded settlement services to include asylum claimants who currently can only access provincially -funded services and also that settlement services be funded to support newcomers with housing searches as at Page 9 present they are mostly limited to orientation, language instruction, and employment; F) Extend and make permanent the Rapid Housing Initiative with another intake in 2024/25 to enable municipalities to invest in supportive housing on an urgent basis and relieve pressure on the shelter system, and work with the provinces and territories to ensure that supportive units have wrap -around health and social supports and long-term operating funding; and G) That a copy of this resolution be forwarded to Durham Region Federal MPs and relevant ministers, Provincial MPPs and relevant ministers, and local area municipalities." Alexander Harras, Director of Legislative Services & Regional Clerk AH/sd c: J. Jivano, MP, Durham J. Schmale, MP, Haliburton/Kawartha Lakes/Brock P. Lawrence, MP, Northumberland/ Peterborough South C. Carrie, MP, Oshawa J. O'Connell, MP, Pickering/Uxbridge R. Turnbull, MP, Whitby Hon. T. McCarthy, Minister of Public and Business Service Delivery, MPP, Durham P. Barnes, MPP, Ajax L. Scott, MPP, Haliburton/Kawartha Lakes/Brock D. Piccini, MPP, Northumberland/Peterborough South J. French, MPP, Oshawa P. Bethlenfalvy, MPP, Pickering/Uxbridge L. Coe, MPP, Whitby J. Grossi, Clerk, Town of Ajax F. Lamanna, Clerk, Township of Brock J. Gallagher, Clerk, Municipality of Clarington M. Medeiros, Clerk, City of Oshawa S. Cassel, Clerk, City of Pickering R. Walton, Clerk, Township of Scugog D. Leroux, Clerk, Township of Uxbridge C. Harris, Clerk, Town of Whitby Page 10 October 25, 2024 Honourable Mark Holland MP, Ajax 100 Old Kingston Rd Ajax, ON L1T 2Z5 Dear Minister Holland: RE: Requesting Federal Government Support for Food Banks, Our The Regional File: C00 Municipality of Durham Council of the Region of Durham, at its meeting held on October 23, Corporate Services 2024, passed the following resolution: Department — Legislative Services "Whereas financial and affordability pressures related to soaring Division mortgage and rent costs, inflated grocery costs, stagnating wages, and limited avenues for social assistance have pushed significantly 605 Rossland Rd. E. more people toward food insecurity; Level 1 Whereas people with fixed incomes, including seniors and social PO Box 623 assistance recipients, are at extremely high risk of food insecurity and Whitby, ON L1 N 6A3 Canada continue to struggle disproportionately as their dollars are being spread thinner; 905-668-7711 1-800- 8-7 1102 Whereas challenges are also continuing to grow for working people, renters, and people living in remote and northern regions of Canada; durham.ca Whereas racialized Canadians are disproportionately impacted by Alexander Harras each of these factors, as the systemic barriers they face have been M.P.A. further exacerbated by the economic and affordability crisis of the past Director of few years; Legislative Services & Regional Clerk Whereas food banks were established as a temporary solution to the increasing cost of food and needs in the community but are now part of a system that government and communities heavily and increasingly rely on; Whereas it has been more than a full year since Food Banks Canada sounded the alarms in the HungerCount 2022 report, calling for action to be taken immediately to help the millions of struggling Canadians from coast to coast to coast; Where the Food Banks Canada report from March 2023, indicates that nearly 2 million Canadians accessed food banks across the country, a 32 per cent increase from March 2022 and a 78.5 per cent increase If you require this information in an accessible format, please contact Eamonn.Rodgers@durham.ca or call 1-800-372-1102 extension 3677. Page 11 from March 2019, which is the highest year -over -year increase in usage ever reported; Whereas the "Emergency Food Security Fund" was established by the Federal Government to address urgent needs during the pandemic but food insecurity has only worsened, and the Federal Government no longer has a program to provide ongoing support to Food Banks; Whereas the majority of support received by food banks is through community fundraising and donations but given financial pressures faced by individuals, these donations are declining; Whereas in certain communities, people who were donating to food banks are now instead accessing the food bank; Whereas the need to address the food insecurity crisis touches on many of the Federation of Canadian Municipalities (FCM) focus areas, including the Inclusive Communities focus area; Now therefore be it resolved: That the Regional Municipality of Durham calls on the Federal Government to help address the food insecurity crisis by providing emergency funding for the purchase of locally sourced food products to food banks, food rescue agencies, and farmers markets providing emergency food assistance, and recognize the systemic issues involved in food bank usage, including affordability, inequality, core housing need and insufficient social supports, in order to end food insecurity; and That a copy of this resolution be forwarded to Durham Region Federal MPs and relevant ministers, Provincial MPPs and relevant minsters and local area municipalities." Alexander Harras, Director of Legislative Services & Regional Clerk AH/sd c: J. Jivano, MP, Durham J. Schmale, MP, Haliburton/Kawartha Lakes/Brock P. Lawrence, MP, Northumberland/ Peterborough South C. Carrie, MP, Oshawa J. O'Connell, MP, Pickering/Uxbridge R. Turnbull, MP, Whitby Hon. T. McCarthy, Minister of Public and Business Service Delivery, MPP, Durham Page 12 P. Barnes, MPP, Ajax L. Scott, MPP, Haliburton/Kawartha Lakes/Brock D. Piccini, MPP, Northumberland/Peterborough South J. French, MPP, Oshawa P. Bethlenfalvy, MPP, Pickering/Uxbridge L. Coe, MPP, Whitby J. Grossi, Clerk, Town of Ajax F. Lamanna, Clerk, Township of Brock J. Gallagher, Clerk, Municipality of Clarington M. Medeiros, Clerk, City of Oshawa S. Cassel, Clerk, City of Pickering R. Walton, Clerk, Township of Scugog D. Leroux, Clerk, Township of Uxbridge C. Harris, Clerk, Town of Whitby Page 13 Date: The Town of The Blue Mountains Council Meeting Scott R. Butler, Executive Director, Ontario Good Roads Association and Antoine Boucher, President, Ontario Good Roads Board of Directors Monday, October 21, 2024 Moved by: Councillor McKinlay Seconded by: Councillor Maxwell THAT Council of the Town of The Blue Mountains receives for information the correspondence of Scott R. Butler, Executive Director, Ontario Good Roads Association and Antoine Boucher, President, Ontario Good Roads Board of Directors Re: Request for Council Consideration of Support for Resolution regarding the Establishment of an Ontario Rural Road Safety Program; WHEREAS official statistics from the Government of Ontario confirm that rural roads are inherently more dangerous than other roads; AND WHEREAS, despite only having 17% of the population, 55% of the road fatalities occur on rural roads; AND WHEREAS, rural, northern, and remote municipalities are fiscally strained by maintaining extensive road networks on a smaller tax base; AND WHEREAS, preventing crashes reduces the burden on Ontario's already strained rural strained health care system; AND WHEREAS, roadway collisions and associated lawsuits are significant factors in runaway municipal insurance premiums. Preventing crashes can have a significant impact in improving municipal risk profiles; THEREFORE, BE IT RESOLVED THAT the Town of The Blue Mountains requests that the Government of Ontario take action to implement the rural road safety program that Good Roads has committed to lead. It will allow Ontario's rural municipalities to make the critical investments needed to reduce the high number of people being killed and seriously injured on Ontario's rural roads; and FURTHER THAT a copy of this resolution be forwarded to Premier Doug Ford, Hon. Prabmeet Sarkaria, Minister of Transportation, Hon. King Surma, Minister of Infrastructure, Hon. Rob Flack, Minister of Agriculture, Hon. Lisa Thompson, Minister of Rural Affairs, Hon. Trevor Jones, Associate Minister of Emergency Preparedness and Response, and Hon. Sylvia Jones, Minister of Health, and Good Roads; and FURTHER THAT this resolution be circulated to all municipalities in Ontario requesting their support. YES: 6 NO: 0 CONFLICT: 0 YES: 6 Mayor Matrosovs Councillor McKinlay NO: 0 CONFLICT: 0 ABSENT: 1 The motion is Carried Councillor Ardiel Councillor Porter Councillor Hope ABSENT: 1 Councillor Maxwell Deputy Mayor Bordignon Page 14 From: Scott Butler <scott@goodroad s.ca> Sent: Wednesday, October 9, 2024 12:07 PM To: Town Clerk <townclerk@thebluemountains.ca> Subject: Establishment of an Ontario Rural Road Safety Program Good Roads Wednesday, October 09, 2024 To: Town of The Blue Mountains Head of Council and Council Members Sent via email to: townclerkPthebluemountains.ca Subject: Establishment of an Ontario Rural Road Safety Program Too many Ontarians are being seriously injured or killed on our roads. In 2023, there were 616 people killed and 36,090 people injured. The number of fatalities is up nearly 20% in the last ten years. In 2021, the most recent year of complete data from MTO's Ontario Road Safety Annual Report (ORSAR), there were 561 fatalities —426 of which occurred on municipal roads. While rural Ontario only represents 17% of the province's population, 55% of these deaths occurred on rural roads. By any measure, Ontario's rural roads are disproportionately more dangerous. At the same time, municipal insurance premiums continue to increase. With no plausible reform being considered forjoint and several liability, municipalities need to find innovative means for managing risk, particularly on their roadways, To deal with this crisis, Good Roads has designed a multifaceted rural road safety program and have been in discussions with the Ministry of Transportation to fund it. The program would target a municipality's most dangerous roads, perform road safety audits, and install modern safety infrastructure that prevents serious injuries and save lives. This program is designed to be cost effective while also providing rural municipalities with a direct means for addressing risk associated with their roadways. Good Roads has proposed leading a five-year $183 million program that leverages our 131 years of municipal road expertise and our industry partnerships to quickly put in place the solutions that will address some of Ontario's most dangerous roads. Good Roads is seeking support to address these preventable tragedies. If the Town of The Blue Mountains would be interested in pursuing this, a Council resolution similar to the example below should be adopted and sent to the Premier and the Minister of Transportation: WHEREAS official statistics from the Government of Ontario confirm that rural roads are inherently more dangerous than other roads; Page 15 AND WHEREAS, despite only having 17% of the population, 55% of the road fatalities occur on rural roads; AND WHEREAS, rural, northern, and remote municipalities are fiscally strained by maintaining extensive road networks on a smaller tax base; AND WHEREAS, preventing crashes reduces the burden on Ontario's already strained rural strained health care system; AND WHEREAS, roadway collisions and associated lawsuits are significant factors in runaway municipal insurance premiums. Preventing crashes can have a significant impact in improving municipal risk profiles; THEREFORE, BE IT RESOLVED THAT the Town of The Blue Mountains requests that the Government of Ontario take action to implement the rural road safety program that Good Roads has committed to lead. It will allow Ontario's rural municipalities to make the critical investments needed to reduce the high number of people being killed and seriously injured on Ontario's rural roads; and FURTHER THAT a copy of this resolution be forwarded to Premier Doug Ford, Hon. Prabmeet Sarkaria, Minister of Transportation, Hon. King Surma, Minister of Infrastructure, Hon. Rob Flack, Minister of Agriculture, Hon. Lisa Thompson, Minister of Rural Affairs, Hon. Trevor Jones, Associate Minister of Emergency Preparedness and Response, and Hon. Sylvia Jones, Minister of Health, and Good Roads; and FURTHER THAT this resolution be circulated to all municipalities in Ontario requesting their support. If you have any questions regarding this initiative please contact Thomas Barakat, Good Roads' Manager of Public Policy & Government Relations, at thomasCd)goodroad s.ca at your convenience. Sincerely, Scott R. Butler Executive Director Antoine Boucher President Good Roads Board of Directors Page 16 Ministry of Natural Resources Ministere des Richesses naturelles Office of the Minister 99 Wellesley Street West Room 6630, Whitney Block Toronto ON M7A 1 W3 Tel: 416-314-2301 October 23, 2024 John Paul Newman Bureau du ministre 99, rue Wellesley Ouest Bureau 6630, Edifice Whitney Toronto ON M7A 1 W3 Tel.: 416 314-2301 Deputy Clerk Municipality of Clarington c/o LHogle clarington.net Dear John Paul Newman: Mom Ontario 354-2024-1233 Thank you for sharing the Council of the Municipality of Clarington's resolution regarding illegal fishing and its interest in enforcement assistance from the Ministry of Natural Resources (MNR). In 2021, our government hired an additional 25 new MNR Conservation Officers who were distributed throughout the province. These officers have enhanced our ministry's ability to monitor compliance and protect Ontario's natural resources. With this addition, we currently employ over 200 highly trained Conservation Officers throughout 48 locations across the province. Our Conservation Officers have committed many days and hours into patrolling Lake Ontario tributaries during this season's salmon migration. To date, our officers have made 1504 contacts with anglers, issued 133 warnings and laid 232 charges. MNR Conservation Officers continue to patrol the rivers and shorelines along Lake Ontario and its tributaries to ensure compliance with fisheries seasons, limits and angling methods. They also respond to public reports received through MNR's TIPS phone line. The ministry always recommends that if anyone suspects illegal activity involving our natural resources, to contact the MNR TIPS line toll free at 1-877-847-7667. They can also call Crime Stoppers at 1-800-222-TIPS, if they wish to remain anonymous. I hope you find this information helpful, and I thank you for your continued support in protecting Ontario's natural resources. Sincerely, The Honourable Graydon Smith Minister of Natural Resources c: Federal Department of Fisheries and Oceans H. Anderson, Executive Administrator, Ma or and Council, Municipality of Clarington Page 17y Ministry of Energy and Electrification Office of the Minister 77 Grenville Street, 10th Floor Toronto ON M7A 2C1 Tel.: 416-327-6758 October 23, 2024 Dear Energy Stakeholder: Ministere de I'Energie et de I'Electrification Bureau du ministre 77, rue Grenville, 10e etage Toronto ON M7A 2C1 Tel.: 416-327-6758 I am writing today to share Ontario's Affordable Energy Future: The Pressing Case for More Power, and to share information about next steps on integrated energy resource planning. Ontario's energy demand is expected to increase by 75 per cent by 2050, as a result of economic development, housing for its growing population and electrification. There is a need to move to an integrated planning process across fuels and sectors, coordinating the build -out of an energy system that remains affordable, abundant and clean. To support this work, I am pleased to release Ontario's Affordable Energy Future: The Pressing Case for More Power, which sets out our priorities in meeting the challenge of a growing Ontario. We are also initiating a consultation and engagement process that would inform the development of Ontario's first Integrated Energy Resource Plan. This plan, which we intend to release in 2025, will consider a long-term, integrated view of energy use across the economy and across all sources of energy. To help guide this consultation and engagement process, the ministry has released a consultation posting on the Environmental Registry of Ontario, which includes Ontario's Affordable Energy Future: The Pressing Case for More Power, together with links to contextual and background information and a series of questions to help guide feedback from our consultation and engagement. The ministry is seeking feedback from the public, Indigenous communities, and key stakeholders to help shape the plan, and we would like to hear from you. On October 23, 2024, 1 also introduced Bill 214, the Affordable Energy Act, 2024, for approval by the legislature. This legislation would, if passed, enable the development of Integrated Energy Resource Plans, and take other steps to achieve our vision of an affordable energy future. The proposal includes statutory amendments that would make it more cost-effective to connect to the electricity grid, help reduce energy use to save families and businesses money and support the growth of electric vehicles in Ontario. Our legislative initiative, along with Ontario's Affordable Energy Future, builds on significant work completed over the past six years to refine energy system planning and guide the transition to cleaner forms of energy. I appreciate the valuable contributions from the sector to help inform this work so far, such as the Electrification and Energy Transition Panel's engagements. I look forward to continuing to work together through this process. .../cont'd Page 18 -2- encourage you to review Ontario's Affordable Energy Future: The Pressing Case for More Power as well as Bill 214, the Affordable Energy Act, 2024, and submit your feedback through the Environmental Registry of Ontario. If you have any specific questions about this consultation process, please contact the following Ministry of Energy and Electrification staff: Christopher Goode Director, Policy Coordination and Outreach Branch Strategic, Network and Agency Policy Division (647) 505-7731 christopher.goode(cb-ontario.ca Hillary Armstrong A/Manager, Policy Coordination Strategic, Network and Agency Policy Division 416-818-0740 hillary.armstrong(a)ontario.ca Sincerely, Stephen Lecce Minister c: Hon. Sam Oosterhoff, Associate Minister of Energy -Intensive Industries Matt Hiraishi, Chief of Staff to the Minister of Energy and Electrification Crystal Mason, Chief of Staff to the Associate Minister of Energy -Intensive Industries Susanna Laaksonen-Craig, Deputy Minister of Energy and Electrification Karen Moore, Assistant Deputy Minister of Energy and Electrification Page 19 �t Ganaraska- CONSERVATION October 18, 2024 June Gallagher Deputy Clerk Municipality of Clarington 40 Temperance Street Bowmanville, ON L1 C 3A6 Dear June Gallagher: Ganaraska Region Conservation Authority 2216 County Road 28 Port Hope, ON L I A 3V8 Phone:905-885-8173 Fax:905-885-9824 www.grca.on.ca MEMBER OF CONSERVATION ONTARIO At the October 17, 2024, Board of Directors meeting of the Ganaraska Region Conservation Authority (GRCA), the members received the 2025 Preliminary Budget for information. The members requested that the budget be forwarded to the watershed municipalities for their consideration of the 2025 levy included in the budget. The proposed 2025 general levy for your municipality is $677,779.49 which includes an adjustment in the 2025 current value assessment for the municipality by the Ministry of Municipal Affairs and Housing (MMAH). The Ganaraska Region Conservation Authority with the four other conservation authorities within the Region of Durham will continue budget discussions as we move through this process. The Clarington levy will be set based on the guidelines set forth by the Region of Durham for the five Durham Region conservation authorities. A copy of the 2025 Preliminary Budget has been enclosed for review by your council over the next month. It is important that your municipality's comments be received prior to the November Board of Directors meeting, which is scheduled for November 28, 2024, as the decision is binding once the vote is taken and the levy is proposed. The Board trusts the enclosed information will be acceptable to your council and looks forward to a continued partnership with your municipality. Should you have any questions please contact the undersigned. Yours truly, L '14 Linda J. Laliberte, CPA, CGA CAO/Secretary-Treasurer Encl. Page 20 T�q t A Ts Jet '`1} �.,t.rY►'' � � ,�titl�i:'?ilp�� •R� ,�-s�� Introduction 3 • Organization Structure Vision, Mission & Committees 4 The Budget Process 5 2025 Budget Presentation Format 6 Conservation Authorities Act Regulations Categorization of Programs & Services as per Regulation 687/21 2025 Budget Summary Revenues 7 2025 Budget Summary Expenditures 9 Watershed Management & Health Monitoring 10 • Revenues 11 • Expenditures 12 Environmental Advisory Services 17 • Revenues & Expenditures 18 Watershed Stewardship 19 • Revenues & Expenditures 20 Conservation Land Management 22 • Revenues 23 • Expenditures 24 Corporate Services 25 • Revenues & Expenditures 26 GRCA Reserves 27 GRCA General Levy 28 Programs & Services Inventory 29 GRCA Preliminary Budget 2025 2 The objects of an Authority are to provide, in the area over which it has jurisdiction, programs and services designed for the purpose of furthering the conservation, restoration, development and management of natural resources in watershed(s). Watershed Municipalities The watershed covers an area of 935 square -kilometres and has a population of 75,854. Municipality of Clarington Town of Cobourg Municipality of Port Hope Township of Hamilton Township ofAlnwick/Haldimand City of Kawartha Lakes Township of Cavan Monaghan 2024/2025 Board of Directors The Board of Directors usually meets the 3rd Thursday of every month or at the call of the Chair. Municipality of Port Hope -Vicki Mink' Municipality of Clarington - Willie Woo" Township of Alnwick/Haldimand -Joan Stover Township of Cavan Monaghan - Lance Nachoff Municipality of Clarington - Margaret Zwart Ontario Federation of Agriculture Rep. - Bruce Buttar Town of Cobourg - Randy Barber Town of Cobourg - Miriam Mutton Township of Hamilton - Mark Lovshin Municipality of Port Hope -Adam Pearson City of Kawartha Lakes -Tracy Richardson Denotes Chair "Denotes Vice Chair I i l°.If l!�`AA�C.UUJICJI�J�A%ULfJIJ1��IL7 ��lll N J�i.Ni o o W� E' r�. M S J tz, Mui I gm --l'itgy of Po IN Hope Lake Ontario T gnship ►f Alnwi�k Legend This map was produced by Ganaraska Region Conservation and should be used for information purposes Watershed Boundary Local Municipality only. Data sources used in its production are of varying quality and accuracy and all boundaries should be considered approximate. Ganaraska Region Conservation disclaims all responsibility for any and all mistakes Conservation Areas -I 0 CA Lands or inaccuracies in the information and further disclaims all liability for loss or damage, which may result from the use of this information. This map is protected by copyrig ht(xoai) and may not be reproduced without Ganaraska written consent from Ganaraska Region Conservation. Any copying, redistribution or republication of the content thereof, for commercial gain is strictly prohibited. Produced by Ganaraska Region Conservation GIS. CONSERVATION Our Shared Values GRCA 2024/2025 Committees To Explore is to Value Knowledge Ganaraska Forest Recreational Users Committee To Learn is to Value Collaboration Bob Gallagher (Chair), Matthew Robbins, Jim Pearson, To Lead is to Value Excellence Jennifer Jackman, Garry Niece, Randy Cunningham, Lisa To Evolve is to Value Innovation Thompson, Amber Panchyshyn, Alex Schmidt, Carolyn Richards, Peter Wood, Steve Brownell, Maureen MacDonald, Lance Nachoff (Board Representation) 11"GIRCA Preliminary Budget 2025 4 JULY/AUGUST Discussions with Watershed Municipalities JANUARY/FEBRUARY Consult with Municipalities on Special Projects 0 MARCH Preparation of Final Budget 4< 0 SEPTEMBER Prepare proposed budget guidelines for Board of Directors NOVEMBER/DECEMBER Board of Directors Weighted Vote on General Levy APRIL Final Budget to Board of Directors for approval a A OCTOBER Preliminary Budget to Board to approve for circulation MUNICIPAL REVIEW PERIOD (30 days minimum) - 0 GRCA Preliminary Budget 2025 5 The Ganaraska Region Conservation Authority The budget columns report on the dollar (GRCA) has 5 program and service departments: Watershed Management and Health Monitoring Environmental Advisory Services Watershed Stewardship Conservation Lands Management Corporate Services The departments are further reported in accordance with the categorization as required by the Regulation 687/21 as explained below. amounts for the previous budget figure and the proposed preliminary budget figure for the current year. As with previous budgets, the budget figures may have been adjusted throughout the year to reflect unexpected decreases/increases in the funding revenues. In cases where the funding received for a capital project is not spent, those funds are carried forward as deferred revenue. Conservation Authorities Act (CA Act) Regulations In October, 2021, the Province of Ontario released The Phase 2 Regulations were finalized under the Phase 1 regulations designed to implement amendments to the CA Act. Ontario Regulation 686127: Mandatory Programs and Services Ontario Regulation 687127: Transition Plans and Agreements for Programs and Services Ontario Regulation G88127: Rules of Conduct in Conservation Areas Conservation Authorities Act in April 2022. The programs of the GRCA are classified into 5 areas. The budget format reflects the program areas into categories 1, 2 and 3, which are reflected in the Programs and Services Inventory and has been attached at the end of the budget. This inventory was finalized and approved by the Board of Directors at the September 21, 2023 meeting. Categorization of Programs and Services as per Regulation 687/21: 1. Mandatory programs and services 3. Other programs and services Defined in regulation; where municipal levy Programs and services an Authority determines could be used without any agreement. are advisable (use of municipal levy requires 2. Municipal programs and services Programs and services at the request of a municipality (with municipal funding through an MOU/agreement). an MOU/agreement with participating municipalities. GRCA Preliminary Budget 2025 6 Ganaraska Conservation's proposed preliminary budget for 2025 is $4,510,223. The following pages provide some explanation on the revenues and expenditures, a budget breakdown, as well as a breakdown of the levy for each watershed municipality. 2025 REVENUES Provincial Section 39 funding of $51,863. The General Levy proposed increase is 3.0' and includes a minimum levy of $16,953 for a total General Levy of $1,318,251. Municipal Benefitting Levy totals $867,870. OProvincial Section 39 OGeneral Levy OMunicipal Benefitting Levy OSelf -Generating OOther Grants nFunding from Capital Asset Reserve 0 Other Revenue Self -Generating Revenue totals $1,443,583. Other Grants of $45,600. Funding from Capital Asset Reserve of $194,506. Other Revenue totals $588,550. Total Revenue $4,510,223. GRCA Preliminary Budget 2025 7 SOURCES OF REVENUE Provincial Section 39 funding The Ontario Ministry of Natural Resources and Forestry provides funding to the Ganaraska Region Conservation Authority and it is expected the 2025 funding will remain in the amount of $51,863. This amount is approximately 50% of the funding that was provided for over the last 20 years and has remained at this reduced amount since 2019. This funding supports the mandated flood forecasting and warning programs. Municipal General Levy The municipal general levy is funding provided by municipalities to support Category 1 programs and services such as enabling services of corporate services, low water response, environmental monitoring and conservation land expenses for recreational uses. Municipal Benefitting Levy Municipal benefitting levy is funding that supports benefitting or special projects which are projects carried out for specific watershed municipalities. Such projects are normally capital projects and may be shared by two or more municipalities within the conservation authority jurisdiction. Self -Generating Revenue Self generating revenue include user fees for planning services and are set to recover but not exceed the costs associated with administering and delivering there services on a program basis can include site inspections and legal inquiries. Ganaraska Forest membership and day passes, as well as bookings at the Forest Centre for education, weddings and camping. Special events, leasing lands, tree planting program revenues and timber management are also included. Other Grants Other grants include employment programs. Funding from Capital Asset Reserve Funding is set aside each year, $189,392 in 2025, from the associated program areas and placed in a reserve that is to be utilized to fund the replacement of the physical assets of the GRCA. Other Revenue Other revenue includes funding of projects that Ganaraska Conservation partners on with other conservation authorities, municipalities and counties that are outside of the GRCA jurisdiction as well as deferred funding. Administration fees which are fees charged for payroll costs and overhead against a program or project, are also reported. Page 28 r EXPENDITURES OWatershed Management & Health Monitoring OEnvironmental Advisory Services OWatershed Stewardship OConservation Land Management OCorporate Services Watershed Management and Health Monitoring Costs required to develop the framework and management strategy to provide a rational approach to natural systems protection, restoration and use. Environmental Advisory Services Costs associated with providing environmental review of development proposals submitted by municipalities, general public and developers. Watershed Stewardship Costs associated with providing services and/ or assistance to watershed residents and municipalities on sound environmental practices that will enhance, restore or protect properties. - F, Conservation Land Management Costs associated with land or buildings either owned or managed by the Authority and may have active programming on conservation lands. Corporate Services Costs associated with the management and programs delivery. GRCA Preliminary Budget 2025 9 WATERSHED MANAGEMENT & HEALTH MONITORING Watershed Management and Health Monitoring Program costs are those required to develop the framework and management strategy to provide a rational approach to natural systems protection, restoration and use. Programs within this area are in Category 1 and 2. FLOOD PROTECTION SERVICES Flood Forecasting and Warning - Category 1: Procedures, undertaken by the Conservation Authority, required to reduce the risk of loss and property damage due to flooding through the forecasting of flood events and issuing of flood warnings, alerts and advisories to prepare those who must respond to the flood event. This is currently funded about 35% by the province and 65% by general levy. Flood/Erosion Control Structures - Category 1: Preventative maintenance to the flood and erosion control structures throughout the watershed. Floodplain Regulations - Category 1: Includes costs associated with implementing the fill and floodplain regulations required ensuring the integrity of the watershed floodplain management system. Floodplain Mapping & Flood Mitigation Projects -Category 1: Floodplain mapping improves flood management response and assists municipalities to understand their flood risk. Flood Protection Services fall within this department, which include costs associated with providing watershed residents with an effective and efficient system that will reduce their exposure to the threat of flood damage and loss of life. Resource Inventory and Environmental Monitoring - Category 1: The groundwater program, funded by the Region of Durham, Municipality of Port Hope and the Township of Hamilton is also reflected under this area. Category 2: The Municipality of Clarington, with Port Hope, Cobourg and Hamilton are funding watershed monitoring. Natural Heritage Mapping - Category 2: A natural heritage mapping for the watershed is continuing using funds from the Municipality of Clarington. Source Protection Planning -Category 1: GRCA is part of the Trent Conservation Coalition (TCC) Source Protection Program, at protecting the sources of water (rivers, lakes, aquifers) used for municipal drinking water systems. Watershed Plans & Strategies - Category 2: Projects undertaken by the Conservation Authority to provide a broad understanding of ecosystem Includes partnership function and status and to make recommendations projects funded by the Flood Hazard Identification and Mapping Program (FHIMP). GIS Services & Remote Sensing - Category 2: GRCA staff continue with these partnerships. for appropriate environmental resource management, land use change, land management change, or redevelopment and restoration, on a watershed basis. Revenues lap IGROCA Preliminary Budget 2025 11 Expenditures Flood Forecasting & Warning Staff i ng 106,604 110,748 Expenses 31,300 30,883 Capital Asset Replacement 13,905 14,322 TOTAL 151,809 155,953 Flood Control Structures Staff ing 12,200 12,200 Expenses 15,200 15,200 Capital Asset Replacement 3,706 3,817 TOTAL 31,106 31,217 Erosion Control Structures Staffing 1,000 1,000 Expenses 0 0 TOTAL 1,000 1,000 Floodplain Regulations Staffing 90,950 107,050 Expenses 3,800 3,388 Capital Asset Replacement 1,553 1,600 TOTAL 9 6, 303 112,038 Dam Safety Capital Asset Replacement 7,479 7,703 TOTAL 7,479 7,703 Natural Hazard Mapping: Clarington Floodline Update Staffing 31,510 21,510 Expenses 2,000 2,000 TOTAL 33,510 23,510 MwI!0GP!CMAPreliminary Budget 2025 12 Expenditures Page 33 Expenditures MBIFGPCA Preliminary Budget 2025 14 Expenditures Watershed Monitoring Staffing 43,563 46,395 Expenses 28,550 25,263 Capital Asset Replacement 15,187 15,642 TOTAL 87,300 87,300 Natural Heritage Mapping Staffing 32,126 31,500 Expenses 2,314 2,940 TOTAL 34,440 34,440 Source Protection Planning - TCC Staffing 98,000 105,400 Expenses 1,000 3,000 TOTAL 99,000 108,400 M.0- GRCA Preliminary Budget 2025 15 WATERSHED MANAGEMENT & HEALTH MONITORING WATERSHED PLANS & STRATEGIES Category 2 - Municipal Services - Risks of Natural Hazards TOTAL WATER MANAGEMENT & HEALTH MONITORING 2024 Budget 1,013,231 2025 Budget 1,300,266 GRCA Preliminary Budget 2025 16 ENVIRONMENTAL ADVISORY SERVICES The Environmental Advisory Services Program costs municipalities, general public and developers. are those associated with providing environmental General levy and plan review fees for stormwater review of development proposals submitted by Municipal/Public Plan Input & Review -Category 1: Includes municipal/public official plan review, comprehensive zoning bylaws, secondary plan review and general planning studies. management fund this service area. land division review, site plans and zoning bylaws and variances. Ganaraska Region Conservation Authority also provides engineering services to neighbouring conservation authorities on a fee for service basis. Development Plan Input & Review - Category 1: Includes development driven review of plans of Watershed Ecology - Category 2: Includes the subdivision and condos, official plan amendments, ecological program of the Authority. I r. GRCA Preliminary Budget 2025 17 .•- Revenues Expenditures E!G!PCAn Preliminary Budget 2025 18 WATERSHED STEWARDSHIP The Watershed Stewardship Program costs are those associated with providing and/or assistance to watershed residents on sound environmental practices that will enhance, restore or protect their properties. Watershed Stewardship is classified as Category 2 & 3 in the Programs and Services Inventory. LAND STEWARDSHIP Clean Water - Healthy Land The Clean Water -Healthy Land Program is a stewardship program funded by Durham Region, Trees Ontario, Oak Ridges Moraine Foundation and landowners. For Durham Region landowners, this program is subsidized by the Region of Durham. This program is also offered by the Municipality of Port Hope and the Township of Hamilton for the landowners, within the municipalities and in partnership with the Conservation Authority. Partner Projects include the partnership with the Greater Golden Horseshoe Conservation Authorities Coalition (GGH CAC). PoMn - GRCA Preliminary Budget 2025 19 Revenues Expenditures Page 40 GRCA Preliminary Budget 2025 20 Expenditures GPCA Preliminary Budget 2025 21 CONSERVATION LAND MANAGEMENT This program area includes all expenses associated the Authority. This area is divided into passive with land or buildings either owned or managed by recreation and programmed recreation. Passive Recreation - Category 1: The costs associated with lands and buildings that do not have active programming. The expenses included are the costs for owning or managing the land. Ganaraska Forest - Category 1 & 3: On April 1st,1997, the Conservation Authority took back management of the Ganaraska Forest from the Ministry of Natural Resources. Revenue from the forest comes from the sale of timber and membership fees. Programmed Recreation - The direct costs associated with delivering active programming on For 2025, the revenue from timber contracts Conservation Authority lands. This includes the are estimated at $250,000. It is anticipated that Ganaraska Forest Centre and the Ganaraska Forest. the damage caused by the derecho windstorm in 2022 will impact future forest timber Ganaraska Forest Centre - Category 3: For over management revenues for several years. forty years, the Ganaraska Region Conservation Authority has provided a unique outdoor education The partnership with Treetop Trekking continues experience to elementary and secondary students and revenues are estimated at $36,000. at the Ganaraska Forest Centre. The outdoor education facility offers both day and overnight education programming. Such programming offered includes: map reading, orienteering, forest studies and stream and pond study. As well, the facility is rented out to Scouts and Girl Guides for weekend use. Page 42 RCA Preliminary Budget 2025 22 Revenues EPGRCA Preliminary Budget 2025 23 CONSERVATION LAND MANAGEMENT PASSIVE RECREATION Category 1 - Mandatory Services t s� r iditures 2024 Budget 2025 Budget PROGRAMMED RECREATION: GANARASKA FOREST & TRAIL HEAD CENTRE Category 1 - Mandatory Services (Forest Recreation) Category 3 - Non -Mandatory Services (Timber Management) 2024 Budget 2025 Budget GANARASKA FOREST CENTRE Category 3 - Non -Mandatory Services TOTAL PROGRAMMED RECREATION TOTAL CONSERVATION LAND MGMT 2024 Budget 1,918,149 2,305,569 2025 Budget 1,552,444 1,920,199 GRCA Preliminary Budget 2025 24 CORPORATE SERVICES This budget area provides the leadership and management in the delivery of all programs and services. It is composed of the wages and benefits of staff of the Conservation Authority, whose main function is to provide coordination, support and Programs and Services Inventory: Corporate Services is classified as supporting services under Category 1. Capital Asset Replacement costs are also classified as supporting services and charged throughout the Category 1 programs and services. Program Description: Key assistance provided to all departments of the conservation authority, board of directors, member municipalities and the general public to enable Ganaraska Conservation to operate in an accountable, transparent, efficient and effective manner. Specific items include: Corporate/Finance Management - includes all administrative and financial staff wages, benefits and expenses, general membership expenses as well as corporate expenses for the Conservation Authority, which includes the levy to Conservation Ontario 0110NOMW services to all programs rather than specific programs. All expenses associated with the Board of Directors are directed to this area. As well, expenses associated with the operations of the administration building. Office Services- includes all wages and benefits for IT staff, as well as expenses, supplies, equipment, computer services, maintenance and utilities for the main administrative building for the various program areas. Corporate Communications - includes wages and benefits for staff working on communication projects, as well as community and public relations expenses, website maintenance and any information costs. All publications, advertising and Authority staff uniforms are included in this program area. MOCA Preliminary Budget 2025 25 Page 45 Revenues Expenditures . � IrG!PCA Preliminary Budget 2025 26 GRCA RESERVES The Ganaraska Region Conservation Authority has six reserves. Capital Asset Replacement Reserve not able to cover the expenses. Monies are transferred The Ganaraska Region Conservation Authority into the reserve from the Forest Centre revenues developed a Capital Asset Replacement Plan in 2016. when appropriate and the revenues exceed the The goal of every capital asset management plan is to expenses in any given year at the end of the year define the use of assets in order to streamline prior to the completion of the financial statements. productivity and delivery with minimal loss of capital. This reserve will replace the equipment reserve that had been previously established in 1992 and does not include any grant dollars. This reserve is allocated to major maintenance and replacement of the GRCA capital assets. This reserve is an essential part of the GRCA's ongoing fiscal responsibility framework, as it guides the purchase, maintenance and disposal of every asset GRCA needs in order to conduct business. Forest Land Purchase Reserve This reserve was established in 2001 with a $10,000 donation by the Township of Cavan Monaghan to be used for costs associated with a land purchase within the Peterborough County jurisdiction. Forest Centre Reserve The original reserve was established in 1986. Upon completion of the Forest Centre rebuild in 2009, the reserve was redirected to be used if there was a shortfall in the revenues due to strikes by schools or other situations when the revenues are Barbara Young Bequest In 2015, the Authority received a bequest from the estate of Barbara Young. The total amount received was $57,981. Although the amount was not externally restricted, the Authority has elected to spend the funds on a new Trappers and Traders program. Save the Ganaraska Again This reserve was set up in 2018 with funds received from the Save the Ganaraska Again organization. The funds are to be used to subsidize students who cannot afford to attend the outdoor education programs. Ganaraska Forest Reserve This reserve was set up in 2024 to be utilized if there was a shortfall in the revenues due to reduced timber sales in any given year when the revenues are not able to cover the expenses. Monies are deposited into the reserve from the Ganaraska Forest revenues if the total revenues exceed the expenses in any given year at the end of the year prior to the completion of the financial statements. GRCA Preliminary Budget 2025 27 E . �, r,. •Yq_•. ram,.• �Tf IF r { � �► �� :N Ty 1, '3' ,fM�•. y, J v i ►� :A,/ A 'z _s.: h I �- •, �i„ �F'x � � � off.. • '3 * u H Municipality of Clarington Town of Cobourg Municipality of Port Hope Township of Alnwick/Haldimand Township of Hamilton Township of Cavan Monaghan City of Kawartha Lakes i 658,596.76 258,545.20 205,927.32 14,269.01 134,210.69 4,865.56 3,440.45 677,779.49 266,488.94 213,290.62 14,721.80 137,436.72 4,992.00 3,541.06 GRCA Preliminary Budget 2025 28 PPOGPAMS ; SEPVICES INVENTOPY Program Program/Service Description Category Area & Sub -services (1,2,3) Support Services Program Description: Key assistance provided to all departments of the conservation authority, board of directors, member municipalities and the general public to support Ganaraska Conservation to operate in an accountable, transparent, efficient and effective manner. CS Corporate Administrative, human resources, operating and 1 Services capital costs which are not directly related to the delivery of any specific program or service, but are the overhead and support costs of a conservation authority. Includes health and safety program, overseeing programs and policies. CS Financial Annual budget, accounts payable and receivable, 1 Management payroll, financial analysis, financial audit, administration of reserves and investments, financial reports for funding agencies, preparing and submitting reports to CPA, benefits program administration. CS Legal Expenses Costs related to agreements/contracts, HR, etc. 1 CS Governance Supporting CA Boards, Advisory Committees, 1 Office of CAO/ST CS Communications Public awareness -natural hazards, flood forecasting 1 & Outreach and warning, permitting requirements, natural hazard identification, mitigation, readiness and response, governance, policy, municipal and public relations and engagement, conservation lands. CS Administration Administrative office and Millennium Building used 1 Buildings to support staff, programs, and services. Includes utilities, routine and major maintenance, property taxes. Included is a charge out for capital asset replacement. CS Information Technology Data management, records retention. 1 Management/ GIS Development and use of systems to collect and store data and to provide spatial geographical representations of data. Included is a charge out for capital asset replacement. - GRCA Preliminary Budget 2025 29 Sub-servicesProgram Program/Service Description Category Area & Natural Hazard Management Program Program Description: Conservation Authorities (CAs) are the lead provincial agencies on Natural Hazard issues. The goal is to protect life and property from flooding and erosion. This watershed -wide, comprehensive program includes development applications and permits, municipal plan input and review, environmental planning and policy, flood forecast and warning, flood and erosion control infrastructure, technical studies, ice management, education and public awareness. WMHM Section 28 Permit Reviewing and processing permit applications, 1 Administration associated technical reports, site inspections, communication with applicants, agents, and consultants and legal costs. Violations also fall under this category. EAS Municipal Plan Technical information and advice to municipalities 1 Input & Plan Review on circulated municipal land use planning applications (Official Plan and Zoning By-law Amendments, Subdivisions, Consents, Minor Variances). Input to municipal land -use planning documents (OP, Comprehensive ZB, Secondary plans) related to natural hazards, on behalf of Ministry of Natural Resources and Forestry (MNRF), delegated to CAs (1983). Input to the review, approval processes under other applicable law, with comments related to natural hazards, wetlands, watercourses, and Sec. 28 permit requirements. WMHM Flood Forecasting Daily data collection and monitoring of weather 1 & Warning forecasts, provincial and local water level forecasts, watershed conditions, snow surveys, flood event forecasting, flood warning, communications and response and equipment maintenance. WMHM Flood & Erosion Control Water and erosion control infrastructure 1 Infrastructure Operation operations and management. Includes all water & Management management structures (flood control, dams and channels, berms, erosion control, etc.) that are annually inspected and routine maintenance work completed. Included is a charge out for capital asset replacement. F!7G7RCA reliminary Budget 2025 30 PPOGPAMS ; SEPVICES INVENTOPY Program Program/Service Description Category Area • Natural Hazard Management Program WMHM Flood & Erosion Control Major maintenance on flood and erosion control 1 Infrastructure Operation structures as required. Projects are dependent on & Management Water and Erosion Control Infrastructure (WECI) funding from the province and support from our municipal partners. WMHM Low Water Response Conditions monitoring and analysis. Technical and 1 administrative support to the Water Response Team representing major water users and decision makers, who recommend drought response actions. WMHM Information Data collection, mapping, data sets, watershed 1 Management photography. Development and use of systems to collect and store data and to provide spatial geographical representations of data. This includes our Geographical Information Systems and support. WMHM Technical Studies & Studies and projects to inform Natural Hazards 1 Policy Review Management Programs, including floodplain management, watershed hydrology, regulations areas mapping update, flood forecasting system assessment, floodplain policy, Lake Ontario Shoreline Management. These projects often occur for a specific number of years and are distributed over time as human resources and funding is available. CL Natural Hazards Promoting public awareness of natural hazards, 1 Communications, including flooding, drought and erosion. Outreach & Education Attending public events, supplying materials. Social media services. Media relations. Educate elementary school students through the Spring Water Awareness Program about the danger of floodwaters, dangers of dams, etc. GRCA Preliminary Budget 2025 31 Provincial Water Quality & Quantity Monitoring Program Description: Ganaraska Conservation, in partnership with Ministry of Environment, Climate Change and Parks (MECP), has established long term sites to monitor surface and ground water conditions, as well as an investment into long-term monitoring of climate change trends. WMHM Provincial Water Quality CA/MECP partnership for stream water quality 1 Monitoring Network monitoring at 9 sites. Staff take water samples and (PWQMN) MECP does lab analysis and data management. Information is used for Watershed Report Cards and stewardship project prioritization. WMHM Provincial Groundwater A long-standing CA/MECP partnership for 1 Monitoring Network groundwater level and quality monitoring at 17 (PGMN) stations. Costs include sampling, data collection, analysis, data management and reporting. MECP funded network installation and continues to fund equipment replacements. Data collected supports groundwater monitoring, low water response and water quality monitoring. Local Water Quality Monitoring Program Description: Ganaraska Conservation, in partnership with community organizations, municipalities, and federal and provincial agencies has established sites to monitor surface water quality and quantity as well as many other parameters to support a healthy ecosystem. WMHM Surface Water Quality Surface water quality monitoring at 18 surface 2 Monitoring Program water sites (in addition to PWQMN), water quantity measurements at 80 baseflow sites and water quality samples collected at 4 auto sampler sites supporting Lake Ontario nearshore water monitoring. Costs include sampling, analysis, equipment maintenance and reporting. 1.0 lf!!GP!CAPreliminary Budget 2025 32 PPOGPAMS & SEPVICES. Program Program/Service Description Category Area . - - Drinking Water Source Protection Program Description: The protection of municipal drinking water supplies in the Trent Conservation Coalition (TCC) Region and the Ganaraska Region Source Protection Area through the development and implementation of TCC Source Protection Plans. Ganaraska Conservation is a member of the TCC which is a complex regional grouping of five Source Protection Areas, including Ganaraska, Crowe, Otonabee, Kawartha and Lower Trent Authorities. WMHM Local Source Protection Source Protection Authority reports, meetings and 1 Area DWSP governance. Delivery of the activities required by the Clean Water Act and regulations, as per Clean Water Act. WMHM DWSP Risk Carrying out Part IV duties of the Clean Water 2 Management Official Act on behalf of municipalities through service agreements. Core Watershed -based Resource Management Strategy Program Description: The purpose of a watershed plan is to understand the current conditions of the watershed and identify measures to protect, enhance and restore the health of the watershed. Watershed strategies provide a management framework to provide recommendations which consists of goals, objectives, indicators and management recommendations. This addresses existing issues in the watershed and mitigate impacts from potential future land uses, while recommending appropriate actions to protect, enhance and restore the watershed. NEW Watershed -Based New Project: Collate/compile existing resource 1 Resource Management management plans, watershed plans, studies and Strategy Development data. Strategy development, implementation and annual reporting. This project builds on previous Watershed Management Strategies. To be completed on or before December 31, 2024, per requirements of Regulation. Sub -watershed Plans and Projects Program Description: Watershed strategies provide a management framework to provide recommendations which consists of goals, objectives, indicators and recommendations. This addresses existing issues in the watershed and mitigate impacts from potential future land uses, while recommending appropriate actions to protect, enhance and restore the watershed. WMHM Natural Heritage Ganaraska Conservation incorporates natural 2 Mapping heritage information, particularly around wetlands, to develop planning and regulatory strategies to mitigate downstream natural hazards. Data is also used in hydrologic and hydraulic models. EAS Watershed Ganaraska Conservation provides watershed 2 Ecology ecology services to specific watershed municipalities. Page 53 GRCA Preliminary Budget 2025 33 Program Program/Service Description Category Area & • - Conservation Authority Lands and Conservation Areas Program Description: Ganaraska Conservation owns over 71,000 acres of land, which includes conservation areas, the Ganaraska Forest, significant wetlands and flood control structures and surrounding land. Ganaraska Conservation property is essential to watershed management, environmental protection, helps implement the Watershed Management Strategy and provides areas for passive recreation. CL Section 29 Enforcement Conservation Areas / Ganaraska Forest / regulation 1 and Compliance enforcement and compliance. Ganaraska Conservation staff and a contracted company patrol the 11,000 acres Ganaraska Forest and conservation areas to ensure that the regulations are being adhered to by the users. CL Ganaraska Forest Category 1 - Ganaraska Conservation owns and 1,3 maintains the 11,000 acre Ganaraska Forest. The forest has 100's of kilometers of multi -use trails that require maintenance year round. This Includes recreation, forest management, risk management program, hazard tree management, gates, fencing, signage, communications, pedestrian bridges, trails, parking lots, picnic shelters, road, restoration, ecological monitoring, carrying costs such as taxes and insurance. The Ganaraska Forest Management Plan guides the management of the forest. The plan's primary goal is "to conserve, enhance and, where feasible, restore the Forest ecosystem to reflect the native biodiversity of the Ganaraska Forest, while at the same time embracing recreational, educational and social activities that support the health and sustainability of the Forest." Category 3 - GRCA also performs timber management within the Forest. The Forest Management Plan lists principles by which the forest is managed and the last principle states that "the Ganaraska Forest provides a sustainable economic benefit to the GRCA, without compromising the ecological health of the Ganaraska Forest." The revenues vary from year to year based on the plan. Expenses are matched with those revenues. GRCA Preliminary Budget 2025 34 Conservation Authority Lands and Conservation Areas CL Conservation Areas The GRCA is responsible for the management and maintenance of 9 conservation areas, as well as other lands that are not formal conservation areas. This includes passive recreation, forest management, risk management program, hazard tree management, gates, fencing, signage, communications, pedestrian bridges, trails, parking lots, picnic shelters, road, restoration, ecological monitoring, carrying costs such as taxes, insurance and capital asset replacement. CL Conservation Area Major maintenance and capital improvements to Major Maintenance support public access, safety and environmental protection, such as pedestrian bridges, boardwalks, pavilions, trails. These expenses are covered by the capital asset reserve in most cases. CL Land Acquisition Strategic acquisition of environmentally significant properties. NEW Inventory of New Project: The land inventory will include the Conservation Authority following information: location, date obtained, Lands method and purpose of acquisition, land use. Project updates as inventory changes. To be completed on or before December 31, 2024 per requirements of Regulation. NEW Strategy for CA owned New Project: A strategy to guide the management or controlled lands and and use of CA -owned or controlled properties, management plans including guiding principles, objectives, land use, natural heritage, classifications of lands, mapping, identification of programs and services on the lands, public consultation, publish on website. Updates of existing conservation area management plans. To be completed on or before December 31, 2024 per requirements of Regulation. NEW Land Acquisition and I Update current policy to guide the acquisition and Disposition Strategy disposition of land to fulfill the objects of the Authority. To be completed on or before December 31, 2024 per requirements of Regulation. 2,3 Page 55 GRCA Preliminary Budget 2025 35 ■ . Program Program/Service Description Category Area & Sub -services (1,2,3) Watershed Stewardship Program Description: The watershed stewardship program includes a fisheries component, a program funded by municipalities which provides funding for landowners for projects and the landowner tree planting program. WS Private Landowner Clean Water -Healthy Land - Financial Assistance 3 Stewardship Program Program: In partnership with some of the watershed municipalities, Ganaraska Conservation offers environmental, technical and financial assistance, tools and information to any resident, business, school or service club within its jurisdiction and within the participating municipality. WS Tree Planting Clean Water -Healthy Land -Tree Planting 3 Services GRCA Tree Seedling Program allows property owners to purchase bare root native tree and shrub seedlings at a minimal cost. GRCA also provides full service tree planting to landowners. WS Fisheries In partnership with Fisheries and Oceans Canada, 3 Services Ganaraska Conservation staff are responsible for the Sea Lamprey Monitoring Program on Cobourg Creek, which captures and samples many different species, records the results and submits data. Fish surveys are also done with other partners, such as OPG and Hydro One through agreements. WS Stewardship Ganaraska Conservation's stewardship program 3 Partner Projects partners with various organizations to deliver environmental programs and projects. These programs are for a limited time period. Examples include the Highway of Heroes Tree Campaign tree planting partnership, Forests Ontario and the Durham Collaborative Tree Program. Page 56 GPCAPreliminary " Budget Jam' 7 Y'f �r tn4)j✓ _ �a r� 44 Other Program Areas Program Description: Ganaraska Conservation delivers other programs that are not part of the mandatory programs and services as outlined in O. Reg. G8G/21. All of the programs are funded without municipal general levy. All of the programs influence and enhance the health and watershed management of the GRCA and are part of a larger integrated watershed management model. CL Outdoor Education The Ganaraska Forest Centre, located in the heart 3 of the Ganaraska Forest, is home to the Outdoor Education Program of the GRCA where thousands of students visit for a day or overnight to learn about their environmental footprint and become familiar with the natural world around them. Taught by Ontario -certified teaching staff, the GFC offers curriculum -based education programs for elementary and secondary students. These programs focus on local watersheds, ecosystems and environmental issues. Programs can also take place at schools (indoors and outdoors) or through online learning. NEW Other Opportunities for new projects or programs that 3 benefit the watershed and its municipal partners can occur anytime and can have varying durations. These projects may require matching funding or be self-sustaining. New projects may require municipal participation and/or funding. M,"GRCA Preliminary Budget 2025 37 & : i'j Sir' -W'T,9 T. ;L Ae )dA. 4; z .VW( 74.. Ilk - `LANDS ACKNOWLEDGEMENT The Ganara: Region Conservation Authority respectfully acknowledges IMPthe land on which we gather is situated within the traditional and treaty V territory of the Mississauga's and Chippewa's of the Anishinabek, known,, 04- today as the Williams Treaties First Nations. 4, Our work on these lands acknowledges their resilience and their longstanding contributions to the area. We are thankful for the opportunity to live,, learn and share with mut I respect and appreciation. 42 ;A Un J,Y 1A I M A k;iw -Ar M GANAPASKA REGION CONSERVATION AUTHORITY 2216 County Pd. 28, Port Hope, ON UA 3V8 Phone: 905.885.8173 Fax: 905.885.9824 GANAPASKA FOREST CENTRE 10585 Cold Springs Camp Pd., Campbellcroft, ON LOA 1130 Fax: 905.797.2545 INFO(:&GPCA.ON.CA I GPCA.ON.CA From: Bonnie Adams To: mbarnier(c�adelaidemetcalfe.on.ca; clerk(c)aditos.ca; cao(abadmastonbromley.com; clerks(oaiax.ca; arochefort(c alfred-plantagenet.com; asmith(c ahtwp.ca; nmartin0)amaranth.ca; dhomenuik(c amherstburg.ca; clerk(cbarmourtownshio.ca; amvvickerymenard(aarmstrona.ca; kzamoiski(caarnprior. ca; clerk(c�arran-elderslie.ca; clerk(abacwtownship.ca; cwhite(alantownship.ca; athens(abmyhiahsoeed.ca; sue. bates(c atikokan.ca; asimonian(a auausta.ca; mderond(abaurora.ca; karin( baldwin.ca; wendv.cooke( barne.ca; tthayer(a)bayham.on.ca; cmcgreaor(cbtwp.beckwith.on.ca; mtmacdonald(cbbelleville.ca; reception (c blackriver- matheson.com; rmordue(cablandfordblenheim.ca; katie.scott(cablindriver. ca; clerk(camunicioalitvofbluewater.ca; cao.clerk(cbbonfieldtownship.org; Imcdonald(albracebridge.ca; rmurDhhy(abtownofbwg.com; cityclerksoffice(c bra moton.ca; clerks(cbbrant.ca; clerks(a bra ntford.ca; cdoiron(c brighton.ca; clerks(cbbrock.ca; fhamilton(albrockton.ca; smacdonald(cbbrockville.com; 'det nkers; idavis(cbbrucemines.ca; dvanwvck(albrucecountv.on.ca; clerk(c)burksfalls.ca; clerks(c burlington.ca; laura.hall(cbcaledon.ca; eaunnell(cbcallander.ca; clerk(a)calvintownship.ca; clerks(c cambridge.ca; sblair(abcarletonplace.ca; clerk(abcasselman.ca; ccpaae(cacavanmonaahan.net; Dshiowav(cbcentralelgin.ora; clerk(cacentralhuron.com; clerksoffice(abcentrehastings.com; kokane(cbcentrewellington.ca; alison.collard(c champlain.ca; cao(a)chaDDle.on.ca; dthibeaultCa charltonanddack.com; ckclerk(a chatham-kent.ca; Dsinnamon(a chatsworth.ca; mouellet(c clarence-rockland.com; ClerksExternalEmail; clerks(abclearview.ca; jhodgson(c cobalt.ca; clerk(a)coboura.ca; Alice. 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Hawkins(aeastferris.ca; info(c eastgarafraxa.ca; clerks(aOeastawillimburvxa; wiaques(c ezt.ca; rwilliams(c twpec.ca; cao(c elgin.ca; yrobert(abektwp.ca; info(cbcity.elliotlake.on.ca; bfoster(c emo.ca; mrobinson(a enalehart.ca; dmctavish(abenniskillen.ca; clerks(c erin.ca; iburke(a esoanola.ca; Ilehr(cbessatownship.on.ca; Sbrown(abessex.ca; clerks(s essex.ca; clerk(alevanturel.com; nvachon(c)fauauierstrickland.com; Dtodd(c forterie.on.ca; Islomke(a fortfrances.ca; clerk(c aananoaue.ca; clerks(abgeorgianbluffs.ca; rdillaboughCa)georgina.ca; afisherCalgoderich.ca; mtownsend(cbtownofgrandvalley.ca; scott.Iucas(c a raven hurst.ca; bzatterbera(abareaternaoanee. corn; clerks(c areatersudbury.ca; kristina.miousse(abgreenstone.ca; clerk(c greyhighlands.ca; clerk(abgreyhighlands.ca; clerks(a)grey.ca; clerks(caarimsbv.ca; clerks(caaueloh.ca; akniaht(c get.on.ca; clerk(cahaldimandcountv.on.ca; valeriep(cbhaltonhills.ca; regionalclerk(ftalton.ca; andrea.holland(cbhamilton.ca; clerk(a)hamilton.ca; vmcdonald(a)hanover.ca; harris(caoarolink.net; brad levc(cahastinascountv.corn; banaione(cahbmtwo.ca; SGirard(cbHawkesbury.ca; ilecours(abhearst.ca; hdillabough(c hortontownship.ca; clerk(abhowick.ca; Tanva.Calleia(ahuntsville.ca; scronin(abhuroncountv.ca; clerk(ahuroneast.com; email(cahuronshores.ca; clerk(abignace.ca; clerks(cbingersoll.ca; clerksoffice(cbinnisfil.ca; treasurer(abiroquoisfalls.com; imaauire(aliohnsontownshiD.ca; chantal.auillemette(cakaouskasina.ca; critchie(cakawarthalakes.ca; kgalbraith(c kenora.ca; clerks(abking.ca; citvclerk(a)cityofkingston.ca; rbaines(c kingsville.ca; Clerk(cbtkl.ca; info(cakitchenermarket.ca; clerk(ablakeshore.ca; clerk(cacounty-lambton.on.ca; strover-bovd(ablam btonshores.ca; iralph(c Ianarkcounty.ca; arobertson(cblasalle.ca; cao(cblaurentianhills.ca; dsauriol(c Ivtownship.ca; lava Ilev(canwonet.net; clerks(caleaminaton.ca; Clerk(caucla.on.ca; clerk(abtownshioleeds.on.ca; tmckenzie(calennox- addington.on.ca; ikirkelos(c Iincoln.ca; csaunder(c Iondon.ca; clerk(cbloyalist.ca; rreymer(cblucanbiddulph.on.ca; Iduauav(caonlink.net; alonevmachar(cavianet.ca; clerktreasurer(avisitmachin.com; clerk(camadoc.ca; mcasavecchia(almalahide.ca; Iwheeler(cbmapleton.ca; kkitteringham(abmarkham.ca; rforgette(abmarkstay- warren.ca; tbennett(camarmoraandlake.ca; admin( mattawan.ca; admin( mattawan.ca; gcoulombe(almatticevalcote.ca; Clerk(abmcmurrichmonteith.com; Ilee(abmcnabbraeside.com; msmith(abmeaford.ca; dholmes(camelancthontownshiD.ca; cao(amerrickville-wolford.ca; mivanic(camiddlesex.ca; clerk(abmiddlesexcentre.on.ca; sedgar(abmidland.ca; townclerk(abmilton.ca; annilene(abtown.minto.on.ca; diana.rusnov(camississauaa.ca; iharfield(a mississiooimills.ca; mark.earlv(atownofmono.com; clerkadministrator(altownship.montague.on.ca; moonbeam(abmoonbeam.ca; townshipofmorley(cbamail.com; thallam(camorristurnberry.ca; tatkinson(camulmur.ca; clerk(abmuskoka.on.ca; nairncentre(capersona internet.com; clerk(abneebing.org; pfettes(c newtecumseth.ca; office(c newbury.ca; clerks(a)newmarket.ca; ann- marie.norio(caniagararegion.ca; bmatson(abniaaarafalls.ca; clerks(a notl.com; Clerks(c norfolkcounty.ca; clerks(abnorfolkcounty.ca; karen.mcisaac(c north bay.ca; asage(alnorthdumfries.ca; arutley(c northdundas.com; CAO(c)northalengarry.ca; clerk(c northarenville.on.ca; devans(aOnorthhuron.ca; Jackiet; scarter(c north oerth.ca; ccalder(abnorthstormont.ca; ccalder(c northstormont.ca; moorei(abnorthumberlandcounty.ca; Irobinson(canorwich.ca; Townclerk(caoakville.ca; clerk(caoilsDrinas.ca; Wayne.Hanchard(caoliveroai000nae.on.ca; tw000as(c persona.ca; clerksdept(cborangeville.ca; clerks(c orillia.ca; yaubichon(c oro medonte.caI service(a oshawa.ca; hscott(cbosmtownshiD.ca; Caitlin.Salter-MacDonaldfabottawa.ca; bbloomfield(a owensound.ca; clerksoffice(aboxfordcounty.ca; clerkCaleapineaucameron.ca; riohnson(abtownofparrysound.com; redona Iclerk(a peel reaion. ca; clerks(c Delham.ca; victoria. charbonneau(a Dembroke. ca; scooper(c penetanguishene.ca; beth.morton(cbtownshipofperry.ca; acarter(c pertheast.ca; clerk(abperth.ca; Iscott(c Derthsouth.ca; caoDerthcountv.ca; choward(a Detawawa.ca; kstevenson(abDtbocountv.ca; jkennedy(fteterborough.ca; moearson(abpetrolia.ca; clerksCalpickering.ca; plumtwsp(a)onlink.net; ekwarciak(abDlvmoton-wvomina.ca; iburns(cavillaaeofoointedward.com; cityclerk(c Dortcolborne. ca; bailmer(abporthope.ca; mlang(cbpowassan.net; Iveltkamp(abprescott.ca; mcadieux(c prescott-russell.on.ca; deputvclerk(c twD.Drince.on.ca; cblumenberg(c)Decountv.on.ca; aschwendinaer( Duslinch.ca; clerk(abquintewest.ca; rainyriver(cbtbaytel.net; ramara(abramara.ca; christine.goulet(cbredlake.ca; cao(a)redrocktownshiD.com; raruntz(c countvofrenfrew.on.ca; adombroski(c countvofrenfrew.on.ca; Stephen.huycke(cbrichmondhill.ca; mtruelove(cbtwprideaulakes.on.ca; ioannecamirelaflamme(cbrussell.ca; clerks(cbsarnia.ca; clerk(casauaeenshores.ca; cityclerk(&citvssm.on.ca; clerks(abscugoa.ca; ciefferv(caseauin.ca; achittick(c selwyntownship.ca; AGray(c severn.ca; iwilloughby(c shelburne.ca; clerk(c shuniah.org; iohn.dalv(c simcoe.ca; kcostello(c smithsfalls.ca; nathalie.vachon(c townsrf.ca; Angie.Cathrae(absouthbrucepeninsula.com; clerk(c southbruce.ca; mail Calsouthdundas.com; kelli(casouthalengarrv.com; clerKbsouthhuron.ca; clerk(asouthriverontario.com; loriann(@southstormont.ca; Igreen(c southgate.ca; clerk(c swox.org; cao(cbsouthwold.ca; renee.chaoeron(c soringwater.ca; Page 59 clerks(cbstcatharines.ca; taodden(astcharlesontario.ca; ibaranek(c stclairtownshio.ca; bkittmer(abtown.stmarys.on.ca; mkonefal(abstthomas.ca; clerk(abstirling-rawdon.com; isands(cbStonemills.com; infoCa sdacounties.ca; tdafoe(a stratford.ca; clerkCa strathrov-caradoc.ca; clerk(c stronatownshio.com; naustin(cbsundridge.ca; kiohns(c tay.ca; clerk(cbtayvalleytwp.ca; Imoy(cbtecumseh.ca; clerk(cbtemagami.ca; Ibelanaer(abtemiskaminashores.ca; shenshaw(abthamescentre.on.ca; townclerk(c thebluemountains.ca; ibrizard(cbnationmun.ca; robert(c thessaIon.ca; clerk(abthorold.com; knower(c thunderbay.ca; clerks(abtillsonbura.ca; clerks(ci)timmins.ca; swalton(catinv.ca; clerk(cbtoronto.ca; doua.irwin(abtrenthills.ca; clerk(cbtweed.ca; clerk(a)tyendinagatownship.com; dleroux(cbuxbridge.ca; eric.bizier(abvalharty.ca; todd.coles(cavauahan.ca; mciuffetelli(cbwainfleet.ca; aaubbels; clerk(cbwasaaabeach. com; iulie.scott(alwaterloo.ca; reaionalclerk(abregionofwaterloo.ca; clerk(c welland.ca; gkosch(cbwellesley.ca; iennifera(cbwellington.ca; townshioCaOwellinaton-north.com; inethercott(cawestelain.net; mturner(cawestarev. com; idvson(cawestlincoln.ca; mducharme(cbwestnipissing.ca; clerk(cbwestperth.com; harrisc(c whitby.ca; becky.iamieson(cbtownofws.ca; cmiller(abwhitewaterreaion.ca; clerks(cbwilmot.ca; clerks(abcitv.windsor.on.ca; ahumohries(cacitvofwoodstock.ca; ismith(cbwoolwich.ca; christopher.raynor(bork.ca; clerk(cbzorra.ca Subject: EB-2024-0251 Enbridge Gas Inc - 2025 Federal Carbon Pricing Program (FCPP) Application - OEB Notice Date: Friday, October 25, 2024 9:35:04 AM Attachments: EGI EB-2024-0251 APPL 20240926.odf NOH Enbridge 2025 FCPP EN 20241021.pdf NOH Enbridge 2025 FCPP FR 20241021.pdf EXTERNAL To: The Clerks of All Municipalities in Which Enbridge Gas Supplies Gas On September 26, 2024, Enbridge Gas filed an application with the OEB for an order or orders for gas distribution rate changes related to compliance obligations under the Greenhouse Gas Pollution Pricing Act, , as well as to recover other related account balances. On October 21, 2024, the OEB issued the Notice of Hearing along with the Letter of Direction for the proceeding. The OEB has directed Enbridge Gas to serve a copy of the Notice of Hearing along with the application and evidence on the Clerks of all municipalities in which Enbridge Gas supplies gas. Attached please find the OEB's Notice of Hearing (English and French) along with Enbridge Gas' application and evidence as filed with the OEB. The OEB's Notice of Application provides information on how to become informed and involved in the proceeding. Interested parties can apply to the OEB for Intervenor Status in this proceeding by November 12, 2024. A paper copy of the evidence filed in this proceeding is available upon request and can also be viewed on the company's website under Other Regulatory Proceedings: Regulatory Information I Enbridge Gas Please contact me if you have any questions. Sincerely, Bonnie Jean Adams Regulatory Coordinator Enbridge Gas Inc. T: 416-495-5751 500 Consumers Road I North York Ontario I M2J 1 P8 Page 60 enbridaeeaas.com Safety. Integrity. Respect. Inclusion. High Performance. My working day may differ from your working day. Please do not feel obliged to reply to this email outside of your normal working hours. Page 61 &'4NBRIDGE` September 26, 2024 VIA RESS AND EMAIL Justin Egan Tel: 519-350-3398 Enbridge Gas Inc. Technical Manager Email: justin.egan@enbridge.com P.O. Box 2001 Regulatory Applications EGIRegulatoryProceedings@enbridge.com 50 Keil Drive N. Regulatory Affairs Chatham, Ontario, N7M 5M1 Nancy Marconi Registrar Ontario Energy Board 2300 Yonge Street, 27'h Floor Toronto, ON M41P 1 E4 Dear Nancy Marconi: Re: Enbridge Gas Inc. (Enbridge Gas) Ontario Energy Board (OEB) File No.: EB-2024-0251 2025 Federal Carbon Pricing Program (FCPP) Application Application and Evidence Enclosed is the application and pre -filed evidence of Enbridge Gas for its 2025 FCPP (the Application). Enbridge Gas is seeking OEB approval of just and reasonable rates effective April 1, 2025, for the EGD and Union rate zones, to recover the costs associated with the FCPP as a pass -through to customers. Enbridge Gas is also seeking OEB approval to dispose of the 2023 balances recorded in its FCPP-related deferral and variance accounts, excluding the Customer Carbon Charge — Variance Accounts (CCCVAs), effective April 1, 2025. Subject to the OEB's decision, Enbridge Gas intends to reflect 2025 increases to rates for the Federal Carbon Charge and Facility Carbon Charge, and the one-time billing adjustment related to the disposition of 2023 FCPP-related deferral and variance account balances as early as the April 1, 2025 Quarterly Rate Adjustment Mechanism (ARAM) application. Enbridge Gas requests that the OEB issue orders granting the approvals requested on a final basis by February 6, 2025. Should the OEB determine that it is not possible to review and grant the approvals requested by such date, Enbridge Gas requests that the OEB grant approval of just and reasonable rates effective April 1, 2025 on an interim basis by February 6, 2025. Given the significance of Enbridge Gas's obligations related to the FCPP and considering the magnitude of the associated rate increases, it is appropriate to avoid continued accumulation of unbilled and uncollected amounts from customers that could result in a larger impact on bills when such amounts are recovered in the future. If you have any questions, please contact the undersigned. Sincerely, Justin Egan Technical Manager Regulatory Applications Page 62 EXHIBIT LIST A —ADMINISTRATION Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 1 Page 1 of 3 Exhibit Tab Schedule Contents A 1 1 Exhibit List 2 Application 3 Glossary of Acronyms and Defined Terms 2 1 Overview 2 Federal Carbon Charge Impact On Customer Consumption B- FORECASTS Exhibit Tab Schedule Contents B 1 1 Forecasts — Overview Appendix A — Enbridge Gas Estimated EPS Compliance Obligation 2 1 Forecasts - EGD Rate Zone 2 EGD Rate Zone — 2024 Customer Related Volume Forecast by Rate Class (April 2024 to March 2025) 3 EGD Rate Zone — 2024 Facility Related Volume Forecast 4 EGD Rate Zone — 2024 Forecast Compressor Emissions 5 EGD Rate Zone - 2024 Forecast EPS Obligation 6 EGD Rate Zone — 2024 Summary of Customer - Related and Facility -Related Costs Page 63 EXHIBIT LIST B- FORECASTS Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 1 Page 2 of 3 Exhibit Tab Schedule Contents 3 1 Forecasts - Union Rate Zones 2 Union Rate Zones — 2024 Customer -Related Volume Forecast by Rate Class (April 2024 to March 2025) 3 Union Rate Zones - 2024 Facility -Related Volume Forecast 4 Union Rate Zones — 2024 Forecast Compressor Emissions 5 Union Rate Zones — 2024 Forecast EPS Obligation 6 Union Rate Zones — 2024 Summary of Customer - Related and Facility -Related Costs C — DEFERRAL AND VARIANCE ACCOUNTS Exhibit Tab Schedule Contents C 1 1 Deferral and Variance Accounts D - COST RECOVERY Exhibit Tab Schedule Contents D 1 1 Cost Recovery 2 1 EGD Rate Zone — Derivation of Federal Carbon Charge and Facility Carbon Charge Unit Rates 2 EGD Rate Zone - Bill Impacts 3 EGD Rate Zone — FCPP-Related Deferral and Variance Accounts Balances and Allocation Page 64 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 1 Page 3 of 3 EXHIBIT LIST D - COST RECOVERY Exhibit Tab Schedule Contents D 2 4 EGD Rate Zone — FCPP-Related Deferral and Variance Account Clearance Unit Rates 5 EGD Rate Zone — FCPP-Related Deferral and Variance Account Clearance Bill Impacts 3 1 Union Rate Zones — Derivation of Federal Carbon Charge and Facility Carbon Charge Unit Rates 2 Union Rate Zones — Bill Impacts 3 Union Rate Zones — FCPP-Related Deferral and Variance Account Balances and Allocations 4 Union Rate Zones — FCPP-Related Deferral and Variance Account Clearance Unit Rates and Ex -Franchise Amounts 5 Union Rate Zones — FCPP - Related Deferral and Variance Account Clearance Bill Impacts Page 65 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 2 Page 1 of 5 ONTARIO ENERGY BOARD IN THE MATTER OF the Ontario Energy Board Act, 1998, S.O. 1998, c. 15, Sch. B; AND IN THE MATTER OF an application by Enbridge Gas Inc., for an order or orders for gas distribution rate changes related to compliance obligations under the Greenhouse Gas Pollution Pricing Act, S.C. 2018, c. 12, s. 186. APPLICATION 1. Enbridge Gas Inc. (Enbridge Gas), the Applicant, was formed by the amalgamation of Enbridge Gas Distribution Inc. and Union Gas Limited on January 1, 2019 pursuant to the Ontario Business Corporations Act, R.S.O. 1990, c. B. 16. Enbridge Gas carries on the business of distributing, transmitting and storing natural gas within Ontario. 2. On June 21, 2018, the Budget Implementation Act, 2018, No. 1 received Royal Assent. Included in Part V is the Greenhouse Gas Pollution Pricing Act, S.C. 2018, c. 12, s. 186 (GGPPA). Under the GGPPA, a federal carbon pricing program (FCPP) applies in whole or in part to any province or territory that requested it or that did not have an equivalent carbon pricing system in place by January 1, 2019. On October 23, 2018, the federal government confirmed that the GGPPA would apply to Ontario. 3. Provinces or territories can submit their own carbon pricing systems to the federal government for approval, and, if approved, are not subject to Part 1 and/or Part 2 of the GGPPA. 4. On March 29, 2021, the federal government announced that, effective January 1, 2022, Ontario's carbon pricing system for industrial emitters, known as the Ontario Emissions Performance Standards (EPS) program, will replace the federal Output -Based Pricing System (OBPS) in Ontario. The GGPPA was amended on September 1, 2021 to Page 66 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 2 Page 2 of 5 remove Ontario from Part 2 of Schedule 1 of the GGPPA, enabling the EPS to take effect in Ontario as of January 1, 2022. 5. In Ontario, the FCPP is composed of two elements: (i) a charge on fossil fuels (the Federal Carbon Charge) imposed on distributors, importers, and producers effective April 1, 2019, and increasing each year on April 1; and (ii) an EPS for prescribed industrial facilities effective January 1, 2022. 6. Enbridge Gas's operations as a natural gas utility in Ontario fall under the purview of the GGPPA and EPS Regulation, which result in the following costs being incurred that are tracked through OEB-approved deferral and variance accounts: a. Incremental bad debt costs;' b. Customer -related Federal Carbon Charge costs for volumes delivered by Enbridge Gas to its residential, commercial, and industrial customers who are not covered under the EPS; and c. Facility -related costs (Facility Carbon Charge) arising from Enbridge Gas's facilities and operation of its gas distribution system. 7. Enbridge Gas hereby applies to the OEB, pursuant to the Ontario Energy Board Act, 1998, S.O. 1998, c.15, Schedule B (the Act), for: a. an order or orders allowing it to charge customers a Federal Carbon Charge on a volumetric basis, in the amount of the Federal Carbon Charge required to be paid by Enbridge Gas pursuant to the GGPPA, effective April 1, 2025; b. an order or orders approving or fixing just and reasonable rates for all Enbridge Gas rate zones (EGD, Union Northeast, Union Northwest and Union South),2 effective April 1, 2025, to allow Enbridge Gas to recover Refer to Exhibit C, Tab 1, Schedule 1 for more information on the incremental bad debt costs. 2 Collectively, the Union Northeast, Union Northwest and Union South rate zones are referred to as the "Union rate zones". Page 67 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 2 Page 3 of 5 other costs (including Facility Carbon Charge costs) incurred in compliance with the GGPPA and EPS Regulation; c. an order or orders approving the 2023 balances for the FCPP-related deferral and variance accounts for all Enbridge Gas rate zones, as set out in Exhibit C and for an order to dispose of those balances, excluding the Customer Carbon Charge — Variance Accounts (CCCVAs), as early as the April 1, 2025 QRAM.3 8. Enbridge Gas further applies to the OEB for all necessary orders and directions concerning pre -hearing and hearing procedures for the determination of this application. 9. This application is supported by written evidence that has been filed with this application and may be amended from time to time as circumstances may require. 10.The persons affected by this application are the customers resident or located in the municipalities, police villages, Indigenous communities and Metis organizations served by Enbridge Gas, together with those to whom Enbridge Gas sells gas, or on whose behalf Enbridge Gas distributes, transmits, or stores gas. It is impractical to set out in this application the names and addresses of such persons because they are too numerous. 11. Enbridge Gas requests that the OEB's review of this application proceed by way of written hearing in English. 12. Enbridge Gas requests that all documents relating to this application and its supporting evidence, including the responsive comments of any interested party, be served on Enbridge Gas and its counsel as follows: 3 Refer to Exhibit C, Tab 1, Schedule 1 for more information on the proposal to defer disposition of the CCCVAs. 9� The Applicant: Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 2 Page 4 of 5 Attention: Justin Egan Technical Manager Regulatory Applications Regulatory Affairs Address: Enbridge Gas Inc. P. O. Box 2001 50 Keil Drive North Chatham, ON N7M 5M1 Telephone: (519) 350-3398 Email: justin.egan@enbridge.com EGIRegulatoryProceedingsC@.enbridge.com The Applicant's Counsel: Attention: Tania Persad Associate General Counsel, Regulatory Law Address: Enbridge Gas Inc. 500 Consumers Road North York, Ontario M2J 1 P8 Telephone: (416) 495-5891 Fax: (416) 495-5994 Email: tan ia.persad(a-),enbridge. com -and- Attention: Henry Ren Senior Legal Counsel Address: Enbridge Gas Inc. 500 Consumers Road North York, Ontario M2J 1 P8 Telephone: (416) 495-5924 Fax: (416) 495-5994 Email: henry. ren enbridge.com Page 69 Dated: September 26, 2024 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 2 Page 5 of 5 Enbridge Gas Inc. Justin Egan Technical Manager Regulatory Applications Regulatory Affairs Page 70 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 3 Page 1 of 7 GLOSSARY OF ACRONYMS AND DEFINED TERMS This glossary is intended to serve as a reference for the benefit of readers in their overall understanding of the terminology used in Enbridge Gas's Application. More detailed definitions may apply to specific terms when used in the context of this Application. 2019 Application — Enbridge Gas's 2019 Federal Carbon Pricing Program Application and pre -filed evidence (EB-2018-0205). 2020 Application — Enbridge Gas's 2020 Federal Carbon Pricing Program Application and pre -filed evidence (EB-2019-0247). 2021 Application — Enbridge Gas's 2021 Federal Carbon Pricing Program Application and pre -filed evidence (EB-2020-0212). 2022 Application — Enbridge Gas's 2022 Federal Carbon Pricing Program Application and pre -filed evidence (EB-2021-0209). 2023 Application — Enbridge Gas's 2023 Federal Carbon Pricing Program Application and pre -filed evidence (EB-2022-0194). 2024 Application — Enbridge Gas's 2024 Federal Carbon Pricing Program Application and pre -filed evidence (EB-2023-0196). BEI — Baseline Emissions Intensity. CCBDDA — Carbon Charges Bad Debt Deferral Account. CCCVA — Customer Carbon Charge - Variance Account. COz — Carbon dioxide. Page 71 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 3 Page 2 of 7 COze — Carbon dioxide equivalent. Company Use Volumes — Volumes of natural gas consumed in the operation of Enbridge Gas's facilities including distribution buildings, boilers/line heaters, and NGV fleet volumes (which are subject to the Federal Carbon Charge under Part 1 of the GGPPA). CRA — Canada Revenue Agency. Customer Volumes — Distribution volumes delivered by Enbridge Gas in Ontario, except for volumes delivered to customers that hold an Exemption Certificate. Customer -Related Obligations — The obligations under the GGPPA related to GHG emissions associated with the natural gas delivered by Enbridge Gas, other than to EPS Facilities. DCQ — Daily Contract Quantity. Distributor — An entity that imports or delivers marketable and non -marketable natural gas, and/or that measures consumption of marketable natural gas, and is required to register as a Distributor under the GGPPA-1 DSM — Demand Side Management. ECCC — Environment and Climate Change Canada. EITE — Energy Intensive and Trade Exposed. EPP — Emissions Performance Program; launched by the MECP in June 2024, the EPP is a program funded by compliance payments collected from the EPS and allows EPS The GGPPA, s.55. https://laws-lois.oustice.gc.ca/PDF/G-11.55.pdf. Page 72 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 3 Page 3 of 7 Facilities to apply for funding to support projects that reduce GHG emissions at the eligible EPS facility. EPS — Ontario Emissions Performance Standards program; effective January 1, 2022, the EPS replaced the OBPS for EPS Facilities. These facilities will have a compliance obligation based on the portion of its emissions that exceed the annual emissions limit. EPS Facility — An entity registered under the EPS and therefore exempt from the Federal Carbon Charge for volumes of fuel delivered by Enbridge Gas. EPS Facilities are classified as mandatory or voluntary based on annual emissions. EPS Facilities are not exempt from Enbridge Gas's Facility Carbon Charges or administration -related costs. EPS Regulation — The Greenhouse Gas Emissions Performance Standards made effective July 4, 2019 under the Environmental Protection Act, R.S.O. 1990, c. E. 19, as they may be amended from time to time.2 EPS Volumes — Volumes of natural gas consumed in the operation of Enbridge Gas's transmission and storage compressor facilities (which are subject to the EPS as Enbridge Gas's transmission and storage system is an "EPS Facility" under the EPS Regulation effective January 1, 2022). EPUs — Emissions Performance Units issued by the provincial government, under the EPS, to facilities that achieve annual emissions volumes below their annual PS. Each EPU, representing one tonne of CO2e, can be banked for future use against emissions or traded, and has a useful life of five years from the period following the year for which the credit was issued, and will be tracked using a centralized system. 2 The EPS, https://www.ontario.ca/laws/regulation/l90241#BK18. Page 73 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 3 Page 4 of 7 Exemption Certificate — A certificate issued by the CRA to eligible entities, exempting the entity from the application of the Federal Carbon Charge.' Facility Carbon Charge — The common volumetric charge proposed by Enbridge Gas, for the EGD rate zone and Union rate zones, to recover the costs resulting from the GGPPA and EPS Regulation related to Enbridge Gas's: (i) Company Use Volumes including distribution buildings, boiler/line heaters, and NGV fleet volumes (which are subject to the Federal Carbon Charge under Part 1 of the GGPPA); and, (ii) transmission and storage compression volumes (which are subject to the EPS as Enbridge Gas's transmission and storage system is listed as an industrial activity in Schedule 2 of the EPS Regulation). Facility Volumes — Composed of: (i) Company Use Volumes including distribution buildings, boilers/line heaters, and NGV fleet volumes; and, (ii) transmission and storage compression volumes. FCCVA — Facility Carbon Charge Variance Account. FCPP — As part of the GGPPA, a federal carbon pricing program (also known as the Backstop) applies in any province or territory that requested it or that does not have an equivalent carbon pricing system in place that meets federal carbon pricing requirements.4 The FCPP is composed of the Federal Carbon Charge and an Emissions Performance Standards (EPS) Program. The EPS Program replaced the federal OBPS effective January 1, 2022. Federal Carbon Charge — As part of the FCPP, a charge applied to fossil fuels imposed on distributors, importers and producers applicable from 2019-2030 and 3 The GGPPA, s.36. https://laws-lois.oustice.gc.ca/PDF/G-11.55.pdf. 4 Government of Canada — Carbon pollution pricing systems across Canada. https://www.canada.ca/en/environment-climate-change/services/climate-change/pricing-pollution-how-it- Will-Wnrk html Page 74 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 3 Page 5 of 7 equivalent to $95/tCO2e as of April 1, 2025. This charge applies to volumes delivered by Enbridge Gas to its customers (other than EPS Facilities) and to Enbridge Gas's Company Use Volumes (i.e. distribution buildings, boilers/line heaters, and NGV fleet volumes). FTE — Full -Time Equivalents. Fuel Charge Regulations — The Fuel Charge Regulations, 2018, C. 12, s. 187, as amended from time to time, is enacted under the GGPPA to further define the application and enforcement of the Federal Carbon Charge.5 GGEADA — Greenhouse Gas Emissions Administration Deferral Account. GGPPA — The Greenhouse Gas Pollution Pricing Act, S.C.2018, c 12, s. 186, as amended from time to time.6 GHG — Greenhouse Gas as set out in Section 3 the GGPPA.' ktCO2e — Kilo -tonne of carbon dioxide equivalent. Listed Province — A province or territory covered, in whole or in part under the GGPPA.8 Mandatory Participant — Entities that emit 50 ktCO2e or greater annually, where the primary activity engaged in at the facility is listed as an industrial activity under the EPS Regulation, are required to register under the EPS. 5 Fuel Charge Regulations, https://Iaws.iustice.qc.ca/PDF/SOR-2018-12187.pdf. 6 The GGPPA, https://laws-lois.iustice.gc.ca/PDF/G-11.55.pdf. Ibid, Schedule 3, Greenhouse Gases, Column 1. 8 Ibid, Schedule 1. Page 75 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 3 Page 6 of 7 Marketable Natural Gas — Natural gas that meets the specifications for pipeline transport and sale for general distribution to the public, as defined by the Fuel Charge Regulations.9 MECP — Ministry of the Environment, Conservation and Parks. MW — Megawatt. MWh — Megawatt hour. NGV — Natural gas vehicle. Non -Marketable Natural Gas — Natural gas other than marketable natural gas, as defined by the GGPPA.10 OBPS — Output -based pricing system; a component of the FCPP applicable in Ontario from January 1, 2019 to December 31, 2021 that applies to certain registered facilities instead of the Federal Carbon Charge. A registered entity had a compliance obligation based on the portion of its emissions that exceeded the annual output -based emissions limit. OEB — Ontario Energy Board. Offset Credits — Represent GHG emissions reductions or removal enhancements generated from Canadian voluntary project -based activities that are not subject to carbon pricing and that would not have occurred under business as usual conditions." 9 Fuel Charge Regulations, s.1.1, https://Iaws.'ustice.qc.ca/PDF/SOR-2018-12187.pdf. 10 The GGPPA, s.3. https://laws-lois.iustice.gc.ca/PDF/G-11.55.pdf. 11 https://www.canada.ca/en/environment-climate-change/services/climate-change/pricing-pollution-how- it-wi I I-work/outp ut-based-pri ci nq-system . htm I . Page 76 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 1 Schedule 3 Page 7 of 7 PS — Performance Standard; a percentage of the baseline emissions intensity applied to the annual facility production to determine the facility's total annual emissions limit under the EPS. PDCI — Parkway Delivery Commitment Incentive. ARAM — Quarterly Rate Adjustment Mechanism. RNG — Renewable Natural Gas; also referred to as Biomethane in the GGPPA, means a substance that is derived entirely from biological matter available on a renewable or recurring basis, and that is primarily methane. tCO2e — Metric tonne of carbon dioxide equivalent. The unit of measure of GHG emissions. A quantity of GHG, expressed in tonnes, is converted into tCO2e by multiplying the quantity by the applicable global warming potential.12 Voluntary Participant — Entities that emit between 10 ktCO2e and 50 ktCO2e annually, where the primary activity engaged in at the facility is listed as an industrial activity under the EPS Regulation may voluntarily register to be part of the EPS. 12 The GGPPA, Schedule 3, Column 2. https://laws-lois.'ustice.gc.ca/PDF/G-11.55.pdf. Page 77 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 1 of 22 n\/F R\/I F\A/ 1. The purpose of this evidence is to further outline the application (Application) of Enbridge Gas Inc. (Enbridge Gas or Company) for: (i) approval to charge customers a Federal Carbon Charge on a volumetric basis, in the amount of the Federal Carbon Charge required to be paid by Enbridge Gas pursuant to the Greenhouse Gas Pollution Pricing Act (GGPPA), effective April 1, 2025; (ii) approval of just and reasonable rates for all Enbridge Gas rate zones, effective April 1, 2025, to allow Enbridge Gas to recover other costs (including the Facility Carbon Charge costs) incurred in compliance with the GGPPA and Ontario's Greenhouse Gas Emissions Performance Standards Regulation (EPS Regulation); and (iii) approval of 2023 balances for the federal carbon pricing program (FCPP) related deferral and variance accounts, excluding the Customer Carbon Charge — Variance Accounts (CCCVAs) for all Enbridge Gas rate zones, and disposition of the same, effective April 1, 2025.E 2. Enbridge Gas's Application is being submitted at this time to facilitate compliance with the GGPPA, the EPS Regulation, and to allow customers to be charged the 2025 Federal Carbon Charge rate for natural gas in a timely fashion without accruing uncharged amounts, in accordance with the FCPP, beginning as early as April 1, 2025. 3. This exhibit of evidence is organized as follows: 1. Background 1.1 The Federal Carbon Pricing Program 2. Enbridge Gas's Obligations Under the GGPPA and EPS Regulation 2.1 Volumes Subject to Federal Carbon Charge Refer to Exhibit C, Tab 1, Schedule 1 for more information on the proposal to defer disposition of the CCCVAs. Page 78 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 2 of 22 2.2 Volumes Subject to EPS 2.3 Management of Facility -Related Emissions and Costs 3. Bill Impacts 4. Requested Approvals 1. Background 4. On June 21, 2018, the federal Budget Implementation Act, 2018, No. 1 received Royal Assent. Part V included the GGPPA. The FCPP applies in whole or in part to any province or territory that requested it or that did not have an equivalent carbon pricing system in place by January 1, 2019. On October 23, 2018, the federal government confirmed that the GGPPA would apply to Ontario. 5. On March 29, 2021, the federal government announced that effective January 1, 2022, Ontario's carbon pricing system for industrial emitters, known as the Ontario Emissions Performance Standards (EPS) program, will replace the federal Output - Based Pricing System (OBPS). The GGPPA was amended on September 1, 2021 to remove Ontario from Part 2 of Schedule 1 of the GGPPA, enabling the EPS to take effect in Ontario as of January 1, 2022. 6. On September 29, 2021, Enbridge Gas filed its 2022 Federal Carbon Pricing Program application2 (2022 Application). To reflect the transition from the federal OBPS to the Ontario EPS program and recognize that Enbridge Gas would be subject to both federal and provincial regulations beginning January 1, 2022, in its 2022 Application, Enbridge Gas proposed to amend the accounting orders by updating the applicable account definitions and account names.3 In its Decision and Order regarding the 2022 Application, the OEB approved the amendments to the wording of the FCPP deferral and variance accounting orders as filed.' 2 EB-2021-0209. 3 EB-2021-0209, Exhibit C, p.3. 4 EB-2021-0209, OEB Decision and Order, February 10, 2022, p.10. Page 79 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 3 of 22 7. On October 31, 2022, Enbridge Gas submitted its 2024 Phase 1 Rebasing Application which included a proposal to harmonize the established FCPP-related deferral and variance accounts effective January 1, 2024, and to record administrative costs associated with current federal and provincial regulations related to greenhouse gas (GHG) emissions requirements through 2024 base rates.5 In the Settlement Proposal, parties agreed on harmonizing the FCPP deferral and variance accounts, on the condition that the existing Greenhouse Gas Emissions Administration Deferral Account (GGEADA) be renamed the Carbon Charges Bad Debt Deferral Account (CCBDDA) and the scope of the account be limited to recording bad debt costs associated with carbon charges.s The OEB approved the changes to the FCPP deferral and variance accounts, effective January 1, 2024, in its Decision on the Settlement Proposal to Enbridge Gas's 2024 Phase 1 Rebasing Application.' Accordingly, as of 2024, the only FCPP-related administrative costs Enbridge Gas is recording in the CCBDDA are bad debt costs. 8. As set out at Exhibit D, Tab 1, Schedule 1, Enbridge Gas is seeking OEB approval to increase the Federal Carbon Charge and Facility Carbon Charge to recover the costs associated with meeting its obligations under the GGPPA and EPS Regulation, on a final basis, effective as early as April 1, 2025. Further, as set out at Exhibit C, Tab 1, Schedule 1 and Exhibit D, Tab 1, Schedule 1, Enbridge Gas proposes to clear the final 2023 balance in its OEB-approved FCPP-related deferral and variance accounts, excluding the small balances in the CCCVAs.8 9. This evidence also includes cost estimates and volume forecasts for 2025 that are meant to be used for informational purposes only. Customers will be charged the 5 EB-2022-0200, Exhibit 9, Tab 1, Schedule 1. 6 EB-2022-0200, Partial Settlement Proposal, June 28, 2023, Exhibit 01, Tab 1, Schedule 1, pp.53-55. EB-2022-0200, Decision on Settlement Proposal, August 17, 2023, p.1. 8 Refer to Exhibit C, Tab 1, Schedule 1, for more information on the proposal to defer disposition of the CCCVAs. '� Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 4 of 22 Federal Carbon Charge and Facility Carbon Charge based on actual volumes. Enbridge Gas will seek disposition of any variance to forecast for 2025 as well as FCPP-related 2025 bad debt costs through a future application to the OEB. 1.1 The Federal Carbon Pricing Program 10. The FCPP is composed of two elements: a. A charge on fossil fuels (the Federal Carbon Charge) as a cost per unit of fuel, including natural gas (cubic meters or m3), imposed on distributors, importers, and producers applicable as of April 1, 2019 under Part 1 of the GGPPA. This charge applies to fuel delivered by Enbridge Gas to its customers, and to Enbridge Gas's own fuel use within its distribution system (i.e. its Company Use Volumes for distribution buildings, boilers/line heaters, and Natural Gas Vehicle (NGV) fleet fuel). Exemptions from the Federal Carbon Charge are explained below. In December 2020, the federal government released its updated climate plan, "A Healthy Environment and A Healthy Economy", outlining the strategy to reduce GHG emissions which included a proposal to increase the Federal Carbon Charge by $15/tCO2e annually starting in 2023, increasing to $170/tCO2e in 2030.9 The federal government confirmed this Federal Carbon Charge increase in July 2021.10 Schedule 2 of the GGPPA was amended on April 1, 2023 to include the Federal Carbon Charge rates from 2023 to 2030. In 2025, the Federal Carbon 9 A Healthy Environment and a Healthy Economy, Environment and Climate Change Canada, December 2020, https://www.canada.ca/content/dam/eccc/documents/pdf/climate-change/climate- plan/healthy environment healthy economy plan.pdf. 10 Update to the Pan -Canadian Approach to Carbon Pollution Pricing 2023-2030, Government of Canada, August 05, 2021, https://www.canada.ca/en/environment-climate-change/services/climate-change/pricing- pollution-how-it-will-work/carbon-pollution-pricing-federal-benchmark-information/federal-benchmark- 2023-2030.html. Page 81 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 5 of 22 Charge is equivalent to $95 per tonne of carbon dioxide equivalent (tCO2e) or 18.11 ¢/m3 (see Table 1). The Federal Carbon Charge became effective April 1, 2019 and increases each subsequent year on April 1. Table 1 2019 — 2030 Federal Carbon Charge Rates for Marketable Natural Gas" Year $/tCO2e 01m3 2019 $20 3.91 2020 $30 5.87 2021 $40 7.83 2022 $50 9.79 2023 $65 12.39 2024 $80 15.25 2025 $95 18.11 2026 $110 20.97 2027 $125 23.83 2028 $140 26.69 2029 $155 29.54 2030 $170 32.40 b. Entities that are covered under the Ontario EPS Regulation are exempt from coverage under Part 1 of the GGPPA, "Fuel Charge" and Part 2 of the GGPPA, "Industrial Greenhouse Gas Emissions". Under the EPS Regulation, the Ontario Ministry of Environment, Conservation and Parks (MECP) established a mandatory emissions threshold for entities identified as being in an Energy Intensive and Trade Exposed (EITE) sector (facilities which have a primary activity listed in Schedule 2 of the EPS Regulation) of 50 ktCO2e or more per year, and a voluntary emissions threshold of 10 — 50 ktCO2e per " The GGPPA, Schedule 2 and Schedule 4, https://laws-lois.justice.gc.ca/PDF/G-11.55.pdf. Page 82 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 6 of 22 year for those entities that may choose to voluntarily participate in the EPS. This component of the FCPP became effective January 1, 2022.12 The EPS creates a pricing incentive to reduce GHG emissions from EITE industrial facilities while limiting the impacts of carbon pricing on their respective competitiveness. Entities subject to the EPS Regulation are required to apply to the MECP and the Canada Revenue Agency (CRA) for exemption from the Federal Carbon Charge. The exemption certificate issued by the CRA must then be submitted to Enbridge Gas to ensure that the entity is not charged the Federal Carbon Charge on its natural gas bill. Participants in the EPS Program are required to report and manage their own compliance obligations and, if their annual emissions are greater than the total annual emissions limit, participants will have the following options to satisfy their compliance obligations:11 (i) Pay the excess emissions charge;14 or (ii) Submit emissions performance units (EPUs) issued by the provincial government. The EPS currently has no provision for use of offset credits. 11.Any natural gas volumes delivered by Enbridge Gas for the period of January 1, 2025 to March 31, 2025 will continue to be charged the Federal Carbon Charge and 12 On March 29, 2021, the federal government announced that Ontario will transition from the federal OBPS to the Ontario EPS effective January 1, 2022 and on September 1, 2021, the Order Amending Part 2 of Schedule 1 to the GGPPA was published in the Canada Gazette, Part II, removing Ontario from Part 2 of the GGPPA as of January 1, 2022. 13 MECP: GHG Emissions Performance Standards and Methodology for the Determination of the Total Annual Emissions Limit, March 2024. https://prod-environmental-registry.s3.amazonaws.com/2024- 04/GHG%20EPS%20and%20Methodology%20for%20determination %20of%20TAEL_March%202024%2 0(EN)_1.pdf 14 Excess emissions charge is the price per unit in $/tCO2e. For the 2025 compliance period, the excess emissions charge is $95/tCO2e. https://www.ontario.ca/laws/regulation/l90241. Page 83 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 7 of 22 Facility Carbon Charge rates approved by the OEB as part of Enbridge Gas's 2024 Application. 2. Enbridge Gas's Obligations Under the GGPPA and EPS Regulation 12.As a natural gas utility in Ontario, a "listed province" in the GGPPA, Enbridge Gas is required to register under Part 1 of the GGPPA with the CRA as a "distributor" for volumes of natural gas delivered to its customers.15 13.As a "distributor", Enbridge Gas is required to remit Federal Carbon Charges related to the GGPPA to the Government of Canada monthly. 14. Enbridge Gas is also required to register under the EPS Regulation as an "EPS facility" since its transmission and storage operations are covered by an industrial activity listed in Schedule 2 of the EPS Regulation.16 15.As an "EPS Facility" under the EPS Regulation, Enbridge Gas is required to remit payment annually for any excess emissions under the EPS. 16. Enbridge Gas has estimated its 2025 cost of compliance with the GGPPA and EPS Regulation to be approximately $3,084.32 million: $1,901.15 million for the EGD rate zone (see Exhibit B, Tab 2 for additional detail) and $1,183.18 million for the Union rate zones (see Exhibit B, Tab 3 for additional detail)17. In addition, Enbridge Gas estimates that it will incur 2025 bad debt costs of approximately $13.05 million based on the forecasted costs recoverable from customers as a result of the GGPPA and EPS Regulation (see Exhibit C, Tab 1, Schedule 1 for additional detail). 15 The GGPPA, s.55 (1). The GGPPA requires registration of distributors of marketable or non marketable natural gas. https://laws-lois.justice.gc.ca/PDF/G-11.55.pdf. 16 The EPS Regulation, O.Reg. 241/19. https://www.ontario.ca/laws/regulation/190241. 17 This only includes the costs associated with utility (regulated) activity. Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 8 of 22 2.1 Volumes Subiect to Federal Carbon Charge 17. Except for customer volumes that are covered under the EPS, or those that are otherwise fully or partially exempt from the Federal Carbon Charge, all distribution volumes delivered by Enbridge Gas in Ontario (Customer Volumes) are covered under Part 1 of the GGPPA and are subject to the Federal Carbon Charge.18 18. Under the GGPPA, Enbridge Gas is required, on a monthly basis, to:19 • calculate and report to the CRA the volume of fuel consumed which is covered under Part 1 of the GGPPA, including Enbridge Gas's own use within its distribution system (i.e. distribution buildings, boilers/line heaters, and NGV fleet volumes); and • remit the amount of the Federal Carbon Charge in respect of the monthly volume that has been calculated. Forecast Customer Volumes and Costs 19.As set out in Table 1, Enbridge Gas is required to remit the 2025 Federal Carbon Charge rate of 18.11 ¢/m3 of natural gas consumed for applicable customers from April 1, 2025 to March 31, 2026. As outlined at Exhibit D, Tab 1, Schedule 1 and consistent with Enbridge Gas's treatment of 2019 to 2024 FCPP-related charges, Enbridge Gas will present these charges as a separate line item on customers' bills. Enbridge Gas's forecast cost associated with Customer Volumes for the period of April 1, 2025 to March 31, 2026 is $3,075.38 million: $1,899.57 million for the EGD rate zone and $1,175.81 million for the Union rate zones (please see Exhibit B for 18 To calculate Enbridge Gas's 2025 customer volume forecast at Exhibit B, Tab 2, Schedule 2, and at Exhibit B, Tab 3, Schedule 2, Enbridge Gas excluded customers who have provided Enbridge Gas with an exemption certificate, in accordance with Section 17(2) of the GGPPA. This includes downstream distributors, entities covered under the EPS, and customers who use natural gas in a non -covered activity. RNG volumes, hydrogen volumes, and 80% of volumes for eligible greenhouses are also excluded. 19 The GGPPA, s.68 (2b), s.71 (3). https://laws-lois.oustice.gc.ca/PDF/G-11.55.pdf. Page 85 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 9 of 22 additional detail on costs associated with Customer Volumes for the period of April 1, 2025 to March 31, 2026). 20.These cost estimates are subject to change based on actual distribution volumes and are meant to be used for informational purposes only. Customers will be charged the Federal Carbon Charge rate monthly based on actual billed volumes. 21. Customers that hold an Exemption Certificate must provide a copy to Enbridge Gas no later than two weeks in advance of the first day of the month in which they wish to have their consumption volumes exempted from the Federal Carbon Charge. Similarly, if a customer is no longer eligible to hold an Exemption Certificate, they must provide notice to Enbridge Gas of that fact, as soon as the facility ceases to be eligible for exemption. Forecast Company Use Volumes and Costs 22.As set out in Table 1, Enbridge Gas is required to remit the 2025 Federal Carbon Charge rate of 18.11 ¢/m3 for natural gas consumed in the operation of Enbridge Gas's facilities which are not covered by the EPS (i.e. distribution buildings, boilers/line heaters, and NGV fleet volumes) (Company Use Volumes). The costs associated with Company Use Volumes will be recovered from customers as part of the Facility Carbon Charge, as detailed at Exhibit D, Tab 1, Schedule 1, included in delivery or transportation charges on customers' bills. Enbridge Gas's forecast cost associated with Company Use Volumes for the period of April 1, 2025 to March 31, 2026 is approximately $2.55 million: $0.78 million for the EGD rate zone and $1.77 million for the Union rate zones (please see Exhibit B for additional detail on costs associated with Company Use Volumes for the period of April 1, 2025 to March 31, 2026). '� Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 10 of 22 23. The forecast Company Use Volumes and associated Facility Carbon Charge cost estimates are subject to change based on actual Facility Volumes. Any cost impacts due to the variance between forecast and actual Facility Volumes will be recorded in the Facility Carbon Charge — Variance Account for future disposition. 2.2 Volumes Subiect to EPS 24. Transmitting natural gas is a covered "industrial activity" under the EPS and includes installations and equipment such as compressor stations, storage installations, and compressor units that have a common owner/operator within a province.20 For Enbridge Gas, this includes fuel used in transmission and storage compressor facilities (EPS Volumes). 25. Under the EPS, Enbridge Gas is required, on an annual basis, to: • calculate and report to the Ontario MECP, Enbridge Gas's EPS-covered emissions and total annual emissions limit for each compliance period; and • provide compensation for, or otherwise obtain EPUs to cover any excess emissions by the applicable deadline. 26.Owners and operators of EPS-covered facilities have a compliance obligation for the portion of the EPS-covered emissions from those facilities that exceed their total annual emissions limit. Under the EPS, a facility's total annual emissions limit is calculated based on the applicable Performance Standard (PS) and its associated annual production.21 As outlined by the MECP, the PS for facilities transmitting natural gas is 74.6% of the production -weighted facility baseline emissions intensity in 2025.21 The costs associated with EPS Volumes will be recovered from customers 20 The EPS Regulation, O.Reg. 241/19. https://www.ontario.ca/laws/regulation/l90241. 21 MECP: GHG Emissions Performance Standards and Methodology for the Determination of the Total Annual Emissions Limit, March 2024. https://prod -environmental-registry.s3. amazonaws.com/2024- 04/GHG%20EPS%20and%20Methodology%20for%20determination%20of%20TAEL March%202024%2 O(EN) 1.pdf. 22 Ibid, Table 4.2, p.43. Page 87 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 11 of 22 as part of the Facility Carbon Charge, as detailed at Exhibit D, Tab 1, Schedule 1, included in delivery or transportation charges on customers' bills. Enbridge Gas's forecast 2025 (January 1, 2025 to December 31, 2025) regulated cost associated with EPS Volumes is $6.40 million: $0.80 million for the EGD rate zone and $5.59 million for the Union rate zones (please see Exhibit B for additional detail on costs associated with EPS Volumes for the period of January 1, 2025 to December 31, 2025). 2.3 Management of Facility -Related Emissions and Costs 27. Consistent with Enbridge Gas's commitment in the 2021 Application ...to identify, track and report on emission reduction opportunities using criteria that effectively balance management of its compliance obligations under the FCPP, estimated capital costs, safety and operational reliability,23 and the OEB's Decision and Order on the 2022 Application that Enbridge Gas's next FCPP application set out in a comprehensive fashion the management of Enbridge's own obligations that identifies its approaches towards achieving efficiencies and reduction of carbon emission related costs to its customerS"24 this section of evidence contains details on the potential options for reducing Enbridge Gas's facility -related emissions and associated costs. Facility -related emissions and associated costs can be reduced through the reduction of either Company Use Volumes or EPS Volumes, or, in the case of EPS associated costs, through the use of lower cost compliance options. 23 EB-2020-0212, EGI 2021 FCPP Application, September 30, 2020, Exhibit A, p.14. 24 EB-2021-0209, OEB Decision and Order, February 10, 2022, p.10. 9� Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 12 of 22 Facility -Related Emission Reduction Projects 28.To support the achievement of federal, provincial, and Enbridge Inc. GHG emission targets, and to support the reduction of facility -related emissions costs, Enbridge Gas continues to update its emission reduction strategy for emissions resulting directly from Enbridge Gas's operations. This strategy covers emissions from combustion of fuels in Company -operated buildings, equipment and vehicles, and methane emissions from venting and leaked natural gas. 29. Enbridge Gas's facility -related emissions covered under the GGPPA and EPS only include stationary combustion and flaring emissions, and, therefore, only opportunities which address these emissions sources will be further discussed in this evidence. Opportunities to reduce GHG emissions from fugitive and vented sources were addressed in Enbridge Gas's 2024 Phase 1 Rebasing Application." 30.Opportunities identified to date with the potential to reduce EPS volumes are listed below in Table 2, Table 3, and Table 4. Table 2 provides a summary of the opportunities that Enbridge Gas is implementing to reduce emissions and facility - related costs. Table 3 summarizes potential opportunities to reduce emissions and facility -related costs that Enbridge Gas has identified but are not currently implementing due to technical and/or economic constraints. Table 4 includes opportunities that are being reviewed as potential projects that could be eligible for funding under the MECP's Emissions Performance Program (EPP). 31. The cost per tonne of GHG emissions shown for each opportunity in Table 2 and Table 3 was calculated using a Discounted Cash Flow analysis (cost represented by a positive $/tCO2e figure and savings represented by a negative $/tCO2e figure). Cash outflows include incremental capital costs of each opportunity. Cash inflows 25 EB-2022-0200, Exhibit 1, Tab 10, Schedule 8, Table 1 & Table 2; and Decision on Settlement Proposal, August 17, 2023, Schedule A (Partial Settlemeng Agreement), p.37. Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 13 of 22 include resulting natural gas savings, avoided carbon charges, any other incremental operations and maintenance (OW) costs or savings, income tax impacts and any operating costs or savings resulting from the opportunity. The net present value (NPV) of cash inflows and outflows is divided by the total estimated emissions avoided over the life of the project to determine the $/tCO2e. Table 2 Facility -Related Emission Reduction Project Summary — In -Progress Opportunities Estimated Forecasted Total Estimated EPS Cost Forecasted Annual Cost per Estimated Emissions Impact - Emissions Project Tonne of GHG Opportunity Capital Cost Reductions — 2023 Reductions — Emissions Emissions ($millions) 2023 ($)26 2025 Reductions ($/tCO2e) (tC0 e) (tC0 e) (tCO2e/yr)21 Storage and 1 Transmission Operations 0.05 490 -32,000 1,10028 1,100 -32 (STO) Online Monitoring 2 Air Filter Replacements O29 60 -3,900 230 1,500 -47 for Turbines 32. Implementation of the first phase of the STO online monitoring opportunity was completed in 2022. Enbridge Gas continues to assess a second phase of this opportunity, where older model compressor units may be brought online to optimize engine use. 33. The air filter replacements for turbines opportunity is ongoing, with higher efficiency filters being installed on applicable units at the next filter change opportunity. 26 Estimated based on estimated emissions reductions and excess emissions charge for 2023. 27 Forecasted total annual project emissions reductions once project is fully implemented. 28 No additional units to be brought online post 2022, and, therefore, forecasted emissions reductions for 2024 will be the same as the forecasted project emission reductions. 29 Initial O&M costs for the air filter replacement program are estimated to be $10,000. Once the program is fully implemented, it is estimated that there will be an O&M savings of approximately $150,000/year. Page 90 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 14 of 22 34. The online monitoring and air filter replacements for turbines opportunities were driven by Enbridge Gas's standard operational maintenance program and, therefore, Enbridge Gas is not seeking cost recovery for these opportunities through this Application. Table 3 Facility -Related Emission Reduction Project Summary — Potential Opportunities Total Estimated Forecasted Annual Cost per Tonne of GHG Opportunity Capital Cost Project Emissions Emissions $millions Reductions tCO2e/ r 3° $/tCO2e Electric Drive 1 Compressors — 70 16,000 105 Dawn Plant C Replacement 2 Electric Drive Compressors — 140 12,000 199 Parkway 3 Re -wheeling 17 3,100 191 Turbines 4 Compressor Fuel 031 275,000 178 Switch to RNG 5 Own Use Gas Fuel Switch to RNG 032 1,300 203 Blend 5% 35. The Compression Modernization Strategy in the Company's asset management plan is a long-term plan to replace identified compression units. Under this project, several factors are being considered in the evaluation of alternatives, including meeting the operating requirements for the storage and transmission systems, reliability, environmental compliance, and GHG emissions reduction strategy. Electrification will be considered as an alternative for both Dawn Plant C and Parkway A engine replacements. Ongoing modernization of Enbridge Gas's 30 Forecasted total annual project emissions reductions once project is fully implemented. 31 It is estimated that the incremental O&M costs will be approximately $151 million/year once fully implemented. 32 It is estimated that the incremental O&M costs will be approximately $0.7 million/year once fully implemented. Page 91 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 15 of 22 compressor fleet is expected to reduce the regulated utility's EPS emissions in the long-term. 36.As part of Enbridge Gas's GHG emissions reduction strategy, identified opportunities will be reviewed on an annual basis, including revisiting any previous assumptions, project costs and the cost of carbon. Part of the process is to continue to identify new opportunities and further assess previously identified opportunities. 37.Actual GHG emissions and reductions in EPS costs resulting from these opportunities will be reflected in Enbridge Gas's future FCPP applications for clearance of FCPP-related deferral and variance accounts. Emissions Performance Program 38. The EPP was introduced by the MECP in June 2024 and uses compliance payments collected through the EPS to support Scope 1 and Scope 2 GHG emissions reductions at non -electricity generating facilities registered in the EPS program.31 39. Each year, the MECP will notify eligible EPS facilities of their notional funding allocation which will be equivalent to the EPS facility's compliance payment made to the MECP in the previous year. To access the notional funding, an EPS facility must submit a project proposal and receive approval from the MECP that the project meets the required funding eligibility criteria. 40.As EPP funding is equal to a facility's compliance payment made to the MECP in the previous year, if an EPS facility purchases EPUs from another EPS entity and then 33 Ontario Government, Available funding opportunities from the Ontario Government, Emissions Performance Program. September 4, 2024. https://www.ontario.ca/page/available-funding-opportunities- ontario-government#section-5. Page 92 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 16 of 22 retires the EPUs for use towards their compliance obligation, the corresponding compliance payment to the MECP could be eliminated or decreased. Therefore, by utilizing EPUs for an EPS compliance obligation, an EPS facility forfeits or reduces the available EPP funding that the MECP would offer the following year. 41. In June 2024, Enbridge Gas was notified by the MECP of a notional allocation of funding up to $2,581,700 to be used to support eligible projects. 42.Opportunities that are identified as being potentially eligible projects for EPP funding are listed in Table 4. These opportunities were identified based on the EPP application requirements. The costs and emissions reductions provided in Table 4 are estimates, but will be updated as part of the project refinement. The MECP will review and consider the submitted applications for approval of the EPP funding. This is an ongoing process, and the MECP does not have a set timeline for approval. 43. Re -wheeling for Parkway A and electrification of the Heritage compressor are potentially feasible for EPP funding, pending project refinement and discussions with the MECP. EPP funding could enable these opportunities to progress in development. Table 4 Facilitv-Related Emission Reduction Proiect Summary — Under Evaluation for EPP fundi Total Estimated Capital Cost Estimated Absolute Project Opportunity 34 ($millions) Emissions Reductions tCOze/ ear 35 Electric Drive Compressors - 2.5 200 Heritage 2 Re -wheeling 2.3 750 Parkway A Turbine 34 Preliminary estimate to be refined. 35 Preliminary estimate to be refined. Page 93 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 17 of 22 44. The Heritage compressor station was identified as a good candidate for electrification as the scope of the project aligns with the potentially available EPP funding amounts and availability of electricity at this location. 45. The re -wheeling turbines opportunity included in Table 3 includes a plan for multiple turbines. By limiting the scope to the Parkway A turbine, the project can potentially be eligible for the EPP funding amount. Initiatives to Reduce Facility -Related Emissions and Costs under the FCPP 46. In addition to the above identified in -progress and potential projects to reduce facility -related emissions, Enbridge Gas continues to assess the availability and use of hydrogen, RNG, and carbon capture and storage (CCS) to lower emissions and the associated costs under the FCPP at the Company's facilities. 47. In 2024, Enbridge Gas began operating a combined heat and power (CHP) unit that can utilize hydrogen and/or natural gas at the Company's Training and Operations Center (TOC) building in Markham, Ontario to study its impact on emissions reductions at that location, and to reduce electrical grid demands. 48. The regulatory and commercial framework for CCS in Ontario continues to evolve. Enbridge Gas will continue to monitor developments in carbon capture technology and the readiness of the carbon storage reservoirs in Ontario, and assess the potential for CCS as an emissions reduction opportunity for the Company's facility - related emissions. EPS Compliance Cost Reductions 49. Aside from paying the excess emissions charge, Enbridge Gas has an alternative compliance option to satisfy its annual EPS compliance obligation by purchasing EPUs from other EPS participants. The EPS Regulation does not allow for the use of Offset Credits as a viable compliance option. Page 94 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 18 of 22 50.Although procurement of EPUs can reduce Enbridge Gas's EPS compliance costs, due to EPUs typically selling at a discount to the excess emissions charge, purchasing EPUs reduces the amount of funding available through the EPP in the following year as discussed above. As an example, procurement of EPUs in 2025 will reduce the amount of EPP funding available in 2026. 51. Since the implementation of the EPP in June 2024, Enbridge Gas has been working to identify GHG emissions reduction projects that would be eligible for EPP funding. The shortlist of eligible projects that have been identified are shown in Table 4 above. Due to the EPP recently being implemented, Enbridge Gas is still determining the right balance between procuring EPUs to reduce the Company's compliance costs, or paying the excess emissions charge in order to maximize the amount of EPP funding available. 52. Enbridge Gas is currently in discussion with other EPS entities about purchasing EPUs to use towards the Company's 2023 compliance obligation, which is due by December 15, 2024. Enbridge Gas will compare the availability and pricing of any potential EPUs with the benefit of paying the excess emissions charge and securing EPP funding the following year, when determining which compliance option to pursue to satisfy the 2023 EPS compliance obligation. If Enbridge Gas is able to procure EPUs at a lower price than the excess emissions charge in the time period between the submission of this Application and the 2023 compliance deadline of December 15, 2024, the cost savings will be recorded in the FCCVA.36 36 EB-2019-0247, Exhibit I.STAFF.8 parts b) and c), June 18, 2020 and EB-2019-0247, Enbridge Gas Reply Argument, July 16, 2020, p.12. Page 95 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 19 of 22 2.4 Management of Customer -Related Emissions and Costs 53. Enbridge Gas currently provides and has proposed several initiatives that assist customers in reducing their natural gas usage, thus reducing their Federal Carbon Charge Costs. This includes the following: i. Enbridge Gas's OptUp program is a voluntary RNG pilot program, which was approved by the OEB and implemented in April 2021.31 This program allows customers to voluntarily pay an additional $2 per month towards the inclusion of RNG in the gas supply portfolio. The program was proposed and approved as a pilot to provide an opportunity to begin incorporating RNG into the gas supply commodity portfolio. Since implementing the program, Enbridge Gas has procured approximately 143,000 m3 of RNG. This RNG procurement resulted in avoided Federal Carbon Charges of approximately $15,000 ($2,000 in 2022, $5,700 in 2023 and $7,300 in 2024 to date) and a reduction of approximately 275 tCO2e (49 tCO2 in 2022, 113 tCO2 in 2023 and 113 tCO2 in 2024 to date) from the displacement of natural gas on an end -use basis. ii. In April 2024, Enbridge Gas submitted Phase 2 of the 2024 Rebasing Application which includes a proposal to procure low carbon energy, with a focus on RNG, as part of the gas supply commodity portfolio beginning in 2026.38 The program would seek to procure up to 1 % (5.3 PJ) of Enbridge Gas's supply as RNG in 2026, increasing 1 % annually to 4% (21.1 PJ) in 2029. If approved and implemented as proposed in the Phase 2 Rebasing Application, in 2026, the RNG procured through this program could reduce Federal Carbon Charges by approximately $28 million and reduce GHG emissions by 0.26 MtCO2e. If approved by the OEB, this program will replace the existing voluntary RNG pilot program. 37 EB-2020-0066, Decision and Order, September 24, 2020. 38 EB-2024-0111,Exhibit 4, Tab 2, Schedule 7. Page 96 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 20 of 22 iii. Phase 1 of Enbridge Gas's Low -Carbon Energy Project (LCEP) began blending hydrogen into the natural gas distribution system in October 2021.39 Since implementation in 2021, over 333,000 m3 of hydrogen has been distributed to customers, reducing GHG emissions by approximately 210 tCO2e from the displacement of natural gas on an end -use basis. Of this volume of hydrogen, about 215,000 m3 has been distributed since August 2022, which is when hydrogen became recognized as exempt from the Federal Carbon Charge.40 The avoided Federal Carbon Charges from the distribution of hydrogen is approximately $26,000 ($2,500 in 2022, $14,800 in 2023 and $8,700 in 2024 to date). iv. In its 2024 Rebasing Application, Enbridge Gas proposed to undertake a Hydrogen Blending Grid Study to evaluate the hydrogen -readiness of all aspects of Ontario's natural gas grid to accept greater amounts of hydrogen which would enable further emission reductions and prepare for the future of hydrogen blending in the province.41 The Hydrogen Blending Grid Study was initiated in 2023 and will be completed in 2026.42 V. Enbridge Gas's DSM program aims to facilitate energy efficiency in Ontario through the implementation of energy efficiency and conservation measures to reduce gas demand from the Company's residential, low income, commercial, industrial, and large volume customers.43 In 2023, Enbridge Gas's DSM programs resulted in total net cumulative natural gas savings of 39 EB-2019-0294. 40 Regulations Amending Schedule 2 to the Greenhouse Gas Pollution Pricing Act, Amending the Fuel Charge Regulations and Repealing the Part 1 of the Greenhouse Gas Pollution Pricing Act Regulations (Alberta): SOR/2023-62, Government of Canada, March 27, 2023, https://www.gazette.gc.ca/rp- pr/p2/2023/2023-04-12/html/sor-dors62-eng. htm I. 41 EB-2022-0200, Exhibit 4, Tab 2, Schedule 6, pp.16-18. 42 EB-2024-0111, Exhibit 1.1.1-ED-57. 43 The customer -related volume forecasts in Exhibit B already incorporate reductions in natural gas due to DSM programs. Page 97 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 21 of 22 1,522.7 million m3 and reduced customers' net GHG emissions due to natural gas conservation by 2.94 million tCO2e.44 vi. Enbridge Gas has made consistent efforts to advance technology innovation over the years through technology studies, field trials, and pilot projects that can help customers use natural gas more efficiently, such as distributed energy resources, hybrid heating, gas heat pumps, and carbon capture and utilization. For a detailed list of technology innovation projects and outcomes that Enbridge Gas led from 2017-2023, please see EB-2024-0111, Exhibit 1.1.10-PP-8, Attachment 1. vii. Enbridge Gas's Natural Gas Vehicle (NGV) Program has been operating within the EGD rate zone since the mid-1980s. The current NGV Program encourages the growth and development of natural gas as a substitute for gasoline and diesel fuel in transportation markets, and coordinates natural gas supply for public and private refueling stations. Participating in the NGV Program and switching from a fuel source such as diesel to natural gas in the transportation sector could reduce a customers' Federal Carbon Charge costs and end -use GHG emissions. For more information on Enbridge Gas's NGV Program, please see EB-2022-0200 Exhibit 1, Tab 14, Schedule 2. 3. Bill Impacts 54. The bill impact of the 2025 carbon charges for a typical residential customer with annual consumption of 2,400 m3 is $435.05 per year in the EGD rate zone, which is an increase of $68.71 per year over 2024. The bill impact of the 2025 carbon charges for a typical residential customer with annual consumption of 2,200 m3 is $398.80 per year in the Union rate zones, which is an increase of $62.98 per year over 2024. 44 EB-2024-0111, Exhibit 1.4.2-ED-48, part c). The 2023 DSM results are unaudited and subject to OEB approval. The GHG emissions calculation assumes 1.932kg of CO2e are emitted for each m3 gas consumed. Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 1 Page 22 of 22 55. The bill impact of the proposed 2023 FCPP-related deferral and variance account balance disposition for a typical residential customer with annual consumption of 2,400 m3 is $2.13 in the EGD rate zone. The bill impact of the proposed 2023 FCPP- related deferral and variance account balance disposition for a typical residential customer with annual consumption of 2,200 m3 is $1.12 in the Union North rate zone and $0.85 in the Union South rate zone. 4. Requested Approvals 56.As the costs to comply with the GGPPA and EPS Regulation in 2025 form part of Enbridge Gas's ongoing operating costs as a utility, and consistent with Enbridge Gas's 2024 Application, Enbridge Gas proposes to continue to treat all prudently incurred costs of compliance with the GGPPA and EPS Regulation as a pass - through to customers (Y Factor). 57. Through this Application and by February 6, 2025, Enbridge Gas is seeking: a) OEB approval of rates to be applied to customer bills beginning April 1, 2025. Following the issuance of the OEB's Decision and Order for this Application, Enbridge Gas intends to reflect 2025 rate increases associated with the Federal Carbon Charge and other costs (including the Facility Carbon Charge costs) incurred in compliance with the GGPPA and EPS Regulation as early as part of its April 1, 2025 QRAM application. b) OEB approval to dispose of the 2023 balances recorded in Enbridge Gas's FCPP-related deferral and variance accounts, excluding the CCCVAs, effective April 1, 2025. Following the issuance of the OEB's Decision and Order for this Application, Enbridge Gas intends to dispose of these balances as a one-time adjustment as early as part of the April 1, 2025 QRAM.45 45 Refer to Exhibit C, Tab 1, Schedule 1, for more information on the proposal to defer disposition of the CCCVAs. Page 99 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 2 Page 1 of 4 FEDERAL CARBON CHARGE IMPACT ON CUSTOMER CONSUMPTION 1. Pursuant to the OEB's request for greater understanding of the impacts of the Federal Carbon Charge on patterns of gas consumption by Enbridge Gas customers, as requested through the 2023 Application, Enbridge Gas is providing, to the best of its ability, an analysis of the Federal Carbon Charge on customer consumption patterns since implementation in 2019.' The analysis below compares the average use trend for residential and non-residential customers pre and post - Federal Carbon Charge implementation. 2. As of 2023, Enbridge Gas served over 3.9 million customers comprising of approximately 3.6 million residential and approximately 300 thousand non-residential customers. 1. Residential Average Use 3. Over the past few decades, several factors have contributed to a gradual decrease in residential natural gas usage. These include improved housing construction and increased efficiency in space -heating equipment and other natural gas appliances (efficiency improvements through building code changes), an increase in natural gas prices, and customer behavior. 4. Figure 1 shows a general downward trend in Enbridge Gas's residential average use since 2007. The average annual decline in residential average use was approximately 1.0% between 2007 and 2018. Since the implementation of the Federal Carbon Charge in 2019, Enbridge Gas' residential customers have continued to experience an average annual decline of approximately 0.7% in average use, which is aligned with the historical trend experienced for the pre-2019 period. Therefore, the introduction of the Federal Carbon Charge in 2019 has not (to EB-2022-0194, Decision and Order, February 9, 2023, p.7. Page100 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 2 Page 2 of 4 this point) had a distinct (or a readily identifiable/recognizable) impact on the trend in residential average use decline. 2,700 2,600 2,500 2,400 E 2,300 2,200 2,100 2,000 Figure 1 - Enbridge Gas Residential Average Use? I, 00 Ql O -1 (14 M ItT V1 l0 I, 00 0) O -1 N M N O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N 2007- 2018 Period 2019- 2023 Period 5. Although the Federal Carbon Charge is one of various contributing factors affecting average use, the Company is not able to exclusively identify the specific impact, or contribution, of the Federal Carbon Charge to the average use versus other contributing factors. To date, residential average use has been following an established trend and no indication of a shift from the historical trend has been observed. 2. Non -Residential Average Use 6. Non-residential average use is largely influenced by the economy. During periods of economic growth, increases in demand for goods and services from the commercial and industrial sectors tend to increase natural gas consumption. "Economy -related 2 Weather Normalized at 2025 Proposed Heating Degree Days. Page 101 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 2 Page 3 of 4 increases in consumption can be significant in the industrial sector since this sector uses natural gas as a fuel and a feedstock for making many products such as fertilizer and pharmaceuticals.113 However, like residential average use, other factors including efficiency increases, natural gas prices, and customer behavior also have an impact on non-residential average use. 7. Figure 2 shows a general trend in Enbridge Gas's non-residential average use since 2007. The non-residential average use had an average annual increase of 1.7% between 2007 to 2018. Since 2011, non-residential average use has been more stable. The average annual increase from 2011 to 2018 was 0.4%. In the period of 2019-2023, after the implementation of the Federal Carbon Charge in 2019, Enbridge Gas exhibited an average annual decline of 1.1 % in non-residential average use. 8. As stated in paragraph 5 above, the Company is not able to exclusively identify the specific impact, or contribution, of the Federal Carbon Charge to the average use versus other contributing factors. Although the non-residential average use trend for the period of 2019-2023 followed a different trend than historically experienced, Enbridge Gas believes that, during this period, the decline in non-residential average use was influenced by the economic conditions under the COVID-19 pandemic (lower GDP growth, business closures, and high commercial vacancy rates). 3 U.S. Energy Information Administration. (2021, October, 5). Natural gas explained, Factors affecting natural gas prices. https://www.eia.gov/energyexplained/natural-gas/factors-affecting-natural-gas- prices.php. Page102 Filed: 2024-09-26 EB-2024-0251 Exhibit A Tab 2 Schedule 2 Page 4 of 4 Fiaure 2- Enbridae Gas Non -Residential Averaae Use4 28,000 27,000 26,000 25,000 24,000 v 23,000 M E 22,000 21,000 20,000 19,000 18,000 I, 00 M O c-I N M IZt Ln W r` 00 01 O —1 N M ci ci N N N N O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N 2007- 2018 Period 2019- 2023 Period 9. Considering the Federal Carbon Charge will continue to increase in the future, absent a change in government policy, Enbridge Gas will continue to monitor the impacts of the Federal Carbon Charge on Enbridge Gas customers' consumption patterns and will continue to report its observations/findings to the OEB. 4 Weather Normalized at 2025 Proposed Heating Degree Days. Page103 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 1 Schedule 1 Plus Appendix Page 1 of 5 FORECASTS - OVERVIEW 1. The purpose of this exhibit is to provide Enbridge Gas's forecast of volumes and the associated forecasted costs of complying with the GGPPA and EPS Regulation for each of the EGD and Union rate zones.' 2. This exhibit of evidence is organized as follows: 1. Exhibit B, Tab 2, Schedule 1: Forecasts - EGD Rate Zone 2. Exhibit B, Tab 3, Schedule 1: Forecasts - Union Rate Zones 1. Forecast Period 3. In this Application, Enbridge Gas has forecast volumes and associated costs in alignment with the annual effective date of changes to the Federal Carbon Charge and the EPS: • For volumes subject to the Federal Carbon Charge (including customer - related and facility -related volumes) — April 1, 2025, to March 31, 2026; and • For volumes subject to the EPS (including facility -related volumes) — January 1, 2025 to December 31, 2025. 4. Natural gas volumes delivered by Enbridge Gas for the period of January 1, 2025 to March 31, 2025, will continue to be charged the Federal Carbon Charge and Facility Carbon Charge rates approved by the OEB as part of Enbridge Gas's 2024 Application. 2. Forecast 2025 Total Volume and Carbon Cost 5. Enbridge Gas's total 2025 regulated volume forecast subject to the GGPPA and the EPS is 17,136,962 103m3.2 This results in an associated forecast 2025 total cost of Forecast administration costs of complying with the GGPPA and EPS Regulation are detailed at Exhibit C, Tab 1, Schedule 1. 2 Total of regulated customer and facility -related volumes for the EGD rate zone and Union rate zones. Calculated as: Exhibit B, Tab 2, Schedule 2, Col. 3, Line 13 + Exhibit B, Tab 2, Schedule 3, Col. 1, Line 6 + Exhibit B, Tab 3, Schedule 2, Col. 3, Line 16 + Exhibit B, Tab 3, Schedule 3, Col. 1, Line 6. Page 104 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 1 Schedule 1 Plus Appendix Page 2 of 5 $3,084.32 million. The details of this volume forecast and associated cost are included at Exhibit B, Tab 2, Schedule 1 for the EGD rate zone and at Exhibit B, Tab 3, Schedule 1 for the Union rate zones. 3. Forecast 2025 Customer Volume and Federal Carbon Charge Cost 6. Enbridge Gas's total 2025 Customer Volume forecast subject to the Federal Carbon Charge is 16,981,671 103m3 for the period of April 1, 2025, to March 31, 2026.3 This results in an associated forecast 2025 Federal Carbon Charge cost of $3,075.38 million. This cost estimate is subject to change based on actual distribution volumes and is meant to be used for informational purposes only. Customers will be charged the Federal Carbon Charge rate monthly based on actual billed volumes. 7. To estimate the Customer Volume forecast, Enbridge Gas excluded customer volumes exempt from Part 1 of the GGPPA, including customer volumes qualifying for exemption for non -covered activities,4 volumes of renewable natural gas (RNG),5 volumes of hydrogen,6and volumes of EPS registered customer facilities with emissions exceeding 10 ktCO2e.7 Enbridge Gas also excluded volumes delivered to downstream distributors, including those distributors that are out of province, which are also exempt from Part 1 of the GGPPA. Further, Enbridge Gas excluded 80% of the volumes delivered to commercial greenhouse operators.$ 3 Calculated as: Exhibit B, Tab 2, Schedule 2, Col. 3, Line 13 + Exhibit B, Tab 3, Schedule 2, Col. 3, Line 16. 4 Under the GGPPA, entities that use natural gas which is not put into a fuel system that produces heat or energy and those entities that use natural gas: (i) as a raw material in an industrial process that produces another fuel, substance, material or thing; or (ii) as a solvent or diluent in the production or transport of crude bitumen or another substance, material or thing, meet the definition of a non -covered activity and may be exempt from Part 1 of the GGPPA. 5 Under the GGPPA, biomethane, also known as RNG, is exempt from the Federal Carbon Charge. 6 On March 27, 2023, the Fuel Charge Regulations, enacted under the GGPPA, were amended to confirm that hydrogen blended with natural gas is exempt from the Federal Carbon Charge, retroactive to August 2022, https://www.gazette.gc.ca/rp-pr/p2/2023/2023-04-12/html/sor-dors62-eng.html. The 2025 Customer Volume forecast excludes customer volumes from mandatory and voluntary participants of the EPS, that are exempt from the Federal Carbon Charge under Part 1 of the GGPPA. 8 Under the GGPPA, greenhouse operators receive partial relief of 80% of the Federal Carbon Charge for natural gas used in the operation of a commercial greenhouse. Page105 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 1 Schedule 1 Plus Appendix Page 3 of 5 8. Customers exempt from Part 1 of the GGPPA who have provided Enbridge Gas their Exemption Certificate, which is issued to the customer upon registration with the CRA, will continue to be exempted unless they otherwise notify Enbridge Gas that they are no longer eligible for exemption. Enbridge Gas will also exempt any additional eligible customers who submit an Exemption Certificate in the future. For those customers covered under the EPS or undertaking non -covered activities, Enbridge Gas will exempt the customer on the date provided by the CRA on the customer's CRA-issued registration confirmation letter. For customers operating commercial greenhouses, exemption will begin the first day of the calendar month following the month in which they provide Enbridge Gas with their Exemption Certificate. 9. The Exemption Certificate indicates that a customer is fully or partially exempt from paying the Federal Carbon Charge on their natural gas combustion fuel delivered by Enbridge Gas. Enbridge Gas uses a customer declaration form to identify which of a customer's accounts are exempt from the Federal Carbon Charge. Enbridge Gas also requests, and maintains on file, copies of each customer's CRA-issued Exemption Certificate and registration confirmation letter. 10. Enbridge Gas exempts customers from the Federal Carbon Charge in its billing systems based on the accounts listed on the customer declaration form, provided a CRA-issued Exemption Certificate and registration confirmation letter have been provided.9 Customers who are no longer eligible for an exemption from Part 1 of the GGPPA are required, as stated on Enbridge Gas's declaration form, to notify Enbridge Gas of any changes to the information that they had initially provided. Upon receipt of such notification, Enbridge Gas will process the change within its billing systems effective at either the start of the next calendar month, or the next compliance period, whichever is applicable. 9 Registration confirmation letters are not applicable to commercial greenhouse customers. Page106 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 1 Schedule 1 Plus Appendix Page 4 of 5 11. Under Part 1 of the GGPPA, biomethane, also known as RNG, is not subject to the Federal Carbon Charge. This includes volumes of RNG nominated by direct purchase customers and RNG procured as part of OptUp, Enbridge Gas's voluntary RNG program. 12. Enbridge Gas uses a RNG declaration form to have direct purchase customers declare their RNG usage and identify which customer accounts are eligible to receive exemption from the Federal Carbon Charge. For forecasting purposes, customers who have nominated their own RNG supply in 2024 were assumed to continue in 2025. 13.Volumes of RNG in OptUp were incorporated into the 2025 Customer -Related Volume forecasts based on the forecast provided in Exhibit C, Tab 2, Schedule 3 of the Voluntary Renewable Natural Gas Program Application.10 14. In April 2024, Enbridge Gas submitted Phase 2 of the 2024 Rebasing Application which includes a proposal to procure up to 1 % of the gas supply commodity portfolio as RNG, beginning in 2026.11 As this proposal has not yet received OEB approval, RNG volumes related to this proposal have not been included in the 2025 Customer Volume forecasts. 15.On March 27, 2023, the Fuel Charge Regulations, enacted under the GGPPA, were amended to confirm that hydrogen blended with natural gas is exempt from the Federal Carbon Charge, retroactive to August 2022, when the federal government first released a legislative proposal exempting hydrogen from the Federal Carbon Charge.12 This applies to volumes of hydrogen injected as part of the Low Carbon 10 EB-2020-0066. 11 EB-2024-0111, Phase 2 Rebasing Application, April 26, 2024, Exhibit 4, Tab 2, Schedule 7. 12 Regulations Amending Schedule 2 to the Greenhouse Gas Pollution Pricing Act, Amending the Fuel Charge Regulations and Repealing the Part 1 of the Greenhouse Gas Pollution Pricing Act Regulations Page107 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 1 Schedule 1 Plus Appendix Page 5 of 5 Energy Project (LCEP), Enbridge Gas's low -carbon hydrogen blending project in Markham, Ontario. 16. Enbridge Gas has incorporated forecasted quantities of blended hydrogen into the 2025 Customer -Related Volume forecast based on the estimated quantities provided by Enbridge Gas in the response to Exhibit I.H2GO.2 of the Low Carbon Energy Project Application.13 4. Forecast 2025 Facility Volume and Facility Carbon Charge Cost 17. Enbridge Gas's total 2025 regulated Facility Volume forecast is 155,291 103m3.14 This results in an associated forecast 2025 Facility Carbon Charge cost of $8.94 million. Facility Volumes are based on the amount of natural gas required for Enbridge Gas to operate its facilities as well as the emissions resulting from the distribution of natural gas. Facility Volumes are composed of: (i) Company Use Volumes including distribution buildings, boilers/line heaters, and NGV fleet volumes (which are subject to the Federal Carbon Charge under Part 1 of the GGPPA) for the period of April 1, 2025 to March 31, 2026; and, (ii) transmission and storage compression volumes (which are subject to the EPS as Enbridge Gas's transmission and storage system is an EPS Facility under the EPS Regulation) for the period of January 1, 2025 to December 31, 2025. The parameters underpinning Enbridge Gas's estimated EPS compliance obligation can be found at Exhibit B, Tab 1, Schedule 1, Appendix A. The forecast 2025 Facility Volume and associated Facility Carbon Charge cost estimate are subject to change based on actual Facility Volumes. (Alberta): SOR/2023-62, Government of Canada, March 27, 2023, https://www.gazette.ac.ca/rp- pr/p2/2023/2023-04-12/htm I/sor-dors62-eng. html. 13 EB-2019-0294. 14 Calculated as: Exhibit B, Tab 2, Schedule 3, Col. 1, Line 6 + Exhibit B, Tab 3, Schedule 3, Col. 1, Line 6. Page108 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 1 Schedule 1 Appendix A Page 1 of 2 ENBRIDGE GAS ESTIMATED EPS COMPLIANCE OBLIGATION 1. On July 4, 2019, the Government of Ontario filed the Greenhouse Gas Emissions Performance Standards Regulation (EPS Regulation) as an alternative to the federal OBPS program.' Enbridge Gas's storage and transmissions system is considered an EPS Facility under the EPS Regulation. On September 1, 2021, the federal government published an Order Amending Part 2 of Schedule 1 to the Greenhouse Gas Pollution Pricing Act in the Canada Gazette, Part II, which removed Ontario from Part 2 of Schedule 1 of the GGPPA as of January 1, 2022.2 Based on the EPS Regulation, the annual compliance obligation under EPS is calculated as follows: Compliance Obligation (tCO2e) = Verification Amount — Total Annual Emissions Limit Where: Verification Amount (tCO2e) = Annual EPS Emissions3 Total Annual Emissions Limit (tCO2e) _ BEI (tCO2e/production units) x Annual SF (%) x Annual Production (production units) 2. For forecasting purposes, the total annual emissions limit was based on the facility Baseline Emissions Intensity (BEI), along with the 2025 stringency factor (SF)4 for transmitting natural gas, following the facility specific Performance Standard (PS) calculation methodology, as outlined in the MECP's GHG Emissions Performance Ontario Regulation 241/19. https://www.ontario.ca/laws/regulation/rl9241. 2 https://canadagazette.gc.ca/rp-pr/p2/2021/2021-09-01/html/sor-dors195-eng.htmI. 3 Ontario Regulation 390/18, s. 12(1). https://www.ontario.ca/laws/regulation/l80390. 4 MECP: GHG Emissions Performance Standards and Methodology for the Determination of the Total Annual Emissions Limit, March 2024, Table 4.2 page 43. https://prod-environmental- registrV.s3.amazonaws.com/2024- 04/G H G %20 E PS%20and %20Methodoloqy%20for%20deterrn i nation %20of% 20TAE L March%202024%20 (EN) 1.pdf. Page109 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 1 Schedule 1 Appendix A Page 2 of 2 Standards and Methodology for the Determination of the Total Annual Emissions Limit, Formula 3.1.5-3.5 3. Forecast annual production is the forecast compressor energy use based on the following formula: Energy (MWh)6 = Rated Compressor Brake Power (MW) x Load (%) x Operating Hours (h) Where: Load (%) _ The % load of the engine -or- Calculated by Average Annual Speed (RPM) - Max Rated Speed (RPM) 4. To forecast the annual production value for 2025, Enbridge Gas has calculated the compressor energy use in MWh for 2021 to 2023 and used an average of this data. Enbridge Gas's detailed calculations of the 2025 forecast EPS emissions, total annual emissions limit, EPS compliance obligation and EPS facility carbon cost for each of the EGD rate zone and Union rate zones can be found at Exhibit B, Tab 2, Schedules 4 to 6 and at Exhibit B, Tab 3, Schedules 4 to 6, respectively. 5 MECP: GHG Emissions Performance Standards and Methodology for the Determination of the Total Annual Emissions Limit, March 2024, p. 22. https://prod-environmental-registry.s3.amazonaws.com/2024- 04/GHG%20EPS%20and%20Methodology%20for%20determination%20of%20TAEL March%202024%20 (EN) 1.pdf. 6 Amount of work required by a compressor to transport g8s Page 11 T Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 2 Schedule 1 Page 1 of 3 FORECASTS - EGD RATE ZONE 1. The purpose of this evidence is to provide Enbridge Gas's 2025 forecast of volumes and the associated forecasted costs of complying with the GGPPA and the EPS Regulation, for the EGD rate zone. 2. This tab of evidence is organized as follows: 1. Forecast 2025 Volume and Carbon Cost 2. Forecast 2025 Customer Volumes and Federal Carbon Charge Cost 3. Forecast 2025 Facility Volumes and Facility Carbon Charge Cost 3.1. Company Use Volumes 3.2. EPS Volumes 1. Forecast 2025 Volume and Carbon Cost 3. The EGD rate zone 2025 regulated volume forecast subject to the GGPPA and EPS Regulation is 10,506,627 103m3.1 This results in an associated forecast 2025 total carbon cost of $1,901.15 million. The details of this volume forecast and associated cost are included at Exhibit B, Tab 2, Schedules 2 to 6. The forecast employs the same methodologies which underpinned forecasts previously approved by the OEB. Enbridge Gas has excluded unregulated non -utility storage volumes and associated costs. Non -utility costs are those associated with Enbridge Gas's unregulated non -utility storage business. 2. Forecast 2025 Customer Volumes and Federal Carbon Charge Cost 4. The EGD rate zone total 2025 Customer Volume forecast subject to the Federal Carbon Charge is 10,489,044 103m3 as detailed at Exhibit B, Tab 2, Schedule 2. This results in an associated forecast 2025 Federal Carbon Charge cost of Calculated as: Exhibit B, Tab 2, Schedule 2, Col. 3, Line 13 + Exhibit B, Tab 2, Schedule 3, Col. 1, Line 6. Page111 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 2 Schedule 1 Page 2 of 3 $1,899.57 million as detailed at Exhibit B, Tab 2, Schedule 6. Enbridge Gas has included forecast distribution volumes subject to the Federal Carbon Charge for all rate classes within the EGD rate zone as detailed at Exhibit B, Tab 2, Schedule 2. The cost estimates are subject to change and are meant to be used for informational purposes only. Customers will be charged the Federal Carbon Charge monthly based on actual billed volumes. 3. Forecast 2025 Facility Volumes and Facility Carbon Charge Cost 5. The EGD rate zone total 2025 regulated Facility Volume forecast is 17,583 103m3 as detailed at Exhibit B, Tab 2, Schedule 3. This results in an associated forecast 2025 Facility Carbon Charge cost of $1.58 million as detailed at Exhibit B, Tab 2, Schedule 6. Facility Volumes are composed of: (i) Company Use Volumes including distribution buildings, boilers/line heaters, and NGV fleet volumes (which are subject to the Federal Carbon Charge under Part 1 of the GGPPA); and (ii) EPS Volumes which includes compressor fuel (which is subject to the EPS as Enbridge Gas's storage and transmission system is an EPS Facility under the EPS Regulation). The forecast 2025 regulated Facility Volume and associated forecast Facility Carbon Charge cost estimates are based on the best available information at this time and are subject to change based on actual Facility Volumes. 3.1 Company Use Volumes 6. The regulated Company Use Volume forecast for 2025 including distribution buildings, boilers/line heaters, and NGV fleet volumes for the EGD rate zone is 4,303 103m3 as detailed at Exhibit B, Tab 2, Schedule 3.2 This results in an associated forecast 2025 Facility Carbon Charge cost of $0.78 million as detailed at Exhibit B, Tab 2, Schedule 6. 2 Enbridge Gas's buildings, boiler/line heater and NGV fuel volume forecast for the EGD rate zone is based on a three-year average of consumption by location. Page112 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 2 Schedule 1 Page 3 of 3 3.2 EPS Volumes 7. The EPS Volume forecast for 2025 for the EGD rate zone is 14,784 103m3 as detailed at Exhibit B, Tab 2, Schedule 3.3 The corresponding forecast 2025 EPS obligation of 9,392 tCOze results in a Facility Carbon Charge cost of $0.89 million as detailed at Exhibit B, Tab 2, Schedules 5 and 6. Of the $0.89 million, $0.80 million is attributable to Enbridge Gas's regulated operations in the EGD rate zone. 8. The EPS Volume forecast is derived by combining forecasts for regulated utility and unregulated non -utility compression activity into an overall physical activity forecast. Enbridge Gas has excluded unregulated non -utility compression volumes and associated costs in deriving the Facility Carbon Charge cost to be recovered in regulated rates. The EPS Volume forecast for the EGD rate zone includes storage, compression, and dehydration fuel. 9. Enbridge Gas's detailed calculations of the 2025 forecast compressor emissions, total annual emissions limit, EPS compliance obligation, and compressor fuel use cost for the EGD rate zone can be found at Exhibit B, Tab 2, Schedules 4 to 6. 3 This includes both utility (regulated) and non -utility (unregulated) volumes. Page113 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 2 Schedule 2 Page 1 of 1 Enbridge Gas Inc. EGD Rate Zone 2025 Customer -Related Volumes by Rate Class (April 2025 to March 2026) (103m3) Col. 1 Col. 2 Col. 3 (Col. 1 - Col. 2) Line No. Rate Class Forecast Volumes' EPS Participant & Other Exempt Volumes2 Net Volumes 1 1 5,055,608 1,043 5,054,565 2 6 4,658,867 106,475 4,552,392 3 9 - - - 4 100 53,972 19,714 34,258 5 110 1,267,962 527,192 740,770 6 115 365,873 363,834 2,038 7 1253 1,042,065 1,042,065 - 8 135 62,123 4,445 57,678 9 145 26,147 15,084 11,063 10 170 251,363 215,084 36,279 11 2004 188,372 188,372 - 12 300 - - - Total 13 Customer -Related 12,972,354 2,483,310 10,489,044 Notes: (1) Forecast Volumes after DSM from April 1, 2025 to March 31, 2026. (2) Estimated forecast volumes for mandatory and voluntary participants in the Emissions Performance Standards (EPS), volumes qualifying for exemption for non -covered activities, partial relief (80%) for greenhouse operators, hydrogen volumes and Renewable Natural Gas (RNG) volumes. RNG volumes include the year 5 volumes outlined in the Voluntary RNG Program Application (EB-2020-0066) and have been allocated equally between the EGD and Union rate zones for forecasting purposes. (3) Dedicated unbundled customers. (4) Includes volumes delivered to downstream distributors and landfill gas. Page114 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 2 Schedule 3 Page 1 of 1 Enbridge Gas Inc. EGD Rate Zone 2025 Facility -Related Volumes (103m) Col. 1 Col. 2 Col.3 (Col. 1 + Col.2) Non -Utility Forecast Line Utility Forecast Amount No. Particulars Amount (regulated) (unregulated) Total 2025 Forecast 1 Company Use - Buildings 572 - 572 2 Company Use - Boilers/Line Heaters 3,312 - 3,312 3 Company Use - NGV Fleet 419 - 419 4 Total Company Use' 4,303 - 4,303 5 Compressor Fue12 13,280 1,504 14,784 6 Total Facility -Related 17,583 1,504 19,087 Notes: (1) Forecast Company -Use volumes for April 1, 2025 to March 31, 2026. (2) Forecast Compressor Fuel for January 1 to December 31, 2025. Page115 Enbridge Gas Inc. EGD Rate Zone Table 1 2025 Forecast Compressor Emissions Col.1 Col.2 Col.3 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 2 Schedule 4 Page 1 of 1 Col. 4 Col. 5 Line No. Particulars Volumes' CO2 Emissions2 CH4 Emissions3 N20 Emissions4 CO2e Emissions5 (10 m) (Tonnes CO2) (Tonnes CH4) (Tonnes N20) (Tonnes CO2e) 1 Compressor Fuel & Transmission Ancillary Fuel 14,784 29,116 29 1 30,124 Notes: (1) Exhibit B, Tab 2, Schedule 3, Col. 3, Line 5. (2) Environment and Climate Change Canada "Canada's Greenhouse Gas Quantification Requirements December 2023", Equation 2-9. (3) Col. 1 x Table 2, Col. 2, Line 1 x Table 2, Col. 2, Line 2. (4) Col. 1 x Table 2, Col. 3, Line 1 x Table 2, Col. 3, Line 2. (5) Col. 2 + (Col. 3 x Table 3, Col. 1, Line 1) + (Col. 4 x Table 3, Col. 2, Line 1). Table 2 Emission Factors Col. 1 Col. 2 Line No. CO2 Emission CH4 Emission Particulars Units Factor Factor' Col. 3 N20 Emission Factor' 1 Natural Gas Pipelines Tonne/GJ 0.00005 0.0000013 3 2 Heat Value GJ/10 m 3 39.08 39.08 39.08 Notes: (1) Environment and Climate Change Canada "Canada's Greenhouse Gas Quantification Requirements - December 2023", Table 2-5. (2) Assumed Budget Heat Value = 39.08 GJ/103m3. In calculating actual emissions, actual heating value will be used. Table 3 Conversion Factors Col. 1 Col. 2 Line No. Particulars Units Methane' Nitrous Oxide' 1 Global Warming Potential for Carbon Dioxide Tonnes CO2e 28 265 Equivalent Notes: (1) Ontario Regulation 390/18: Greenhouse Gas Emissions: Quantification, Reporting and Verification, Schedule 1. Page116 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 2 Schedule 5 Page 1 of 1 Enbridge Gas Inc. EGD Rate Zone 2025 Forecast EPS Obligation Col.1 Col.2 Col.3 Col.4 Col.5 Col.6 2021 - 2023 EGI 2025 Forecast Average Facility Specific Total Annual Line Compressor Emission 2025 Forecast Performance Emissions EPS Compliance No. Emissions' Intensity Production Standard Limit4 Obligations (tCO2e) (tCO2e/MWh) (MWh) (tCO2e/MWh) (tCO2e) (tCO2e) 1 30,124 0.63 47,914 0.43 20,731 9,392 Notes: (1) Exhibit B, Tab 2, Schedule 4, Table 1, Col. 5. (2) Col. 1 / Col. 2. (3) MECP's GHG Emissions Performance Standards and Methodology for the Determination of the Total Annual Emissions Limit — March 2024, Formula 3.1.5-3. (4) Col. 3 x Col. 4. (5) Col. 1 - Col. 5. Page117 Enbridge Gas Inc. EGD Rate Zone 2025 Summary of Customer -Related and Facility -Related Costs Line No. Particulars Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 2 Schedule 6 Page 1 of 1 2025 Forecast Customer -Related Cost Forecast 1 Customer -related Forecast Volume (103m) (1) 10,489,044 2 Federal Carbon Charge ($/m3) (2) 0.1811 3 Total Customer -Related Costs ($) 1,899,565,854 Facility -Related Cost Forecast 4 Company -Use Forecast Volume (103m) (3) 5 Federal Carbon Charge ($/m3) (2) 6 Company Use Costs ($) 7 8 9 10 11 12 EPS Obligation (tCO2e) (4) Excess Emissions Charge ($/tCO2e) (s) Compressor Fuel Use Costs ($) Compressor Fuel Use Costs - Unregulated ($) c6) Total Facility Related Costs 4,303 0.1811 779,245 9,392 95.00 892,256 90,767 801,489 1,580,734 13 Total Cost Forecast ($) 1,901,146,588 Notes: (1) Exhibit B, Tab 2, Schedule 2. Forecast volumes from April 1, 2025 to March 31, 2026. (2) Exhibit A, Table 1. (3) Exhibit B, Tab 2, Schedule 3, Column 1, Line 4. Forecast volumes from April 1, 2025 to March 31, 2026. (4) Exhibit B, Tab 2, Schedule 5. Forecast from January 1 to December 31, 2025. (5) EPS Regulation, Section 11.1. (6) Unregulated EPS costs are allocated based on pro-rata regulated/unregulated total compressor volumes per Exhibit B, Tab 2, Schedule 3. Page118 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 3 Schedule 1 Page 1 of 3 FORECASTS - UNION RATE ZONES 1. The purpose of this evidence is to provide Enbridge Gas's 2025 forecast of volumes and the associated forecasted costs of complying with the GGPPA and the EPS Regulation, for the Union rate zones. 2. This tab of evidence is organized as follows: 1. Forecast 2025 Volume and Carbon Cost 2. Forecast 2025 Customer Volumes and Federal Carbon Charge Cost 3. Forecast 2025 Facility Volumes and Facility Carbon Charge Cost 3.1. Company Use Volumes 3.2. EPS Volumes 1. Forecast 2025 Volume and Carbon Cost 3. The Union rate zones 2025 regulated volume forecast subject to the GGPPA and EPS Regulation is 6,630,335 103m3.1 This results in an associated forecast 2025 total carbon cost of $1,183.18 million. The details of this volume forecast and associated cost are included at Exhibit B, Tab 3, Schedules 2 to 6. The forecast employs the same methodologies which underpinned forecasts previously approved by the OEB. Enbridge Gas has excluded unregulated non -utility storage volumes and associated costs. Non -utility costs are those associated with Enbridge Gas's unregulated non -utility storage business. 2. Forecast 2025 Customer Volumes and Federal Carbon Charae Cost 4. The Union rate zones total 2025 Customer Volume forecast subject to the Federal Carbon Charge is 6,492,627 103m3 as detailed at Exhibit B, Tab 3, Schedule 2. This results in an associated forecast 2025 Federal Carbon Charge cost of $1,175.81 million as detailed at Exhibit B, Tab 3, Schedule 6. Enbridge Gas has included 'Calculated as: Exhibit B, Tab 3, Schedule 2, Col. 3, Line 16 + Exhibit B, Tab 3, Schedule 3, Col. 1, Line 6. Page119 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 3 Schedule 1 Page 2 of 3 forecast distribution volumes subject to the Federal Carbon Charge for all rate classes within the Union rate zones as detailed at Exhibit B, Tab 3, Schedule 2. The cost estimates are subject to change and are meant to be used for informational purposes only. Customers will be charged the Federal Carbon Charge monthly based on actual billed volumes. 3. Forecast 2025 Facility Volumes and Facility Carbon Charge Cost 5. The Union rate zones total 2025 regulated Facility Volume forecast is 137,708 103m3 as detailed at Exhibit B, Tab 3, Schedule 3. This results in an associated forecast 2025 Facility Carbon Charge cost of $7.36 million as detailed at Exhibit B, Tab 3, Schedule 6. Facility Volumes are composed of: (i) Company Use Volumes including distribution buildings, boilers/line heaters, and NGV fleet volumes (which are subject to the Federal Carbon Charge under Part 1 of the GGPPA); and (ii) EPS Volumes which includes compressor fuel (which is subject to the EPS as Enbridge Gas's storage and transmission system is an EPS Facility under the EPS Regulation). The forecast 2025 regulated Facility Volume and associated forecast Facility Carbon Charge cost estimates are based on the best available information at this time and are subject to change based on actual Facility Volumes. 3.1 Company Use Volumes 6. The regulated Company Use Volume forecast for 2025 including distribution buildings, boilers/line heaters and NGV fleet volumes for the Union rate zones is 9,761 103m3 as detailed at Exhibit B, Tab 3, Schedule 3.2 This results in an associated forecast 2025 Facility Carbon Charge cost of $1.77 million as detailed at Exhibit B, Tab 3, Schedule 6.3 2 Enbridge Gas's buildings, boiler/line heater and NGV fuel volume forecast for the Union rate zones is based on a three-year average of consumption by location. 3 Included in the Company Use Volume forecast for 2025 is 34 103m3 for distribution buildings associated with non -utility unregulated storage activity. Enbridge Gas has not accounted for this amount separately as it is immaterial, resulting in costs of around $6,000. Page120 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 3 Schedule 1 Page 3 of 3 3.2 EPS Volumes 7. The EPS Volume forecast for 2025 for the Union rate zones is 138,852 103m3 as detailed at Exhibit B, Tab 3, Schedule 3.4 The corresponding forecast 2025 EPS obligation of 63,901 tCOze results in a Facility Carbon Charge cost of $6.07 million as detailed at Exhibit B, Tab 3, Schedules 5 and 6. Of the $6.07 million, $5.59 million is attributable to Enbridge Gas's regulated operations in the Union rate zones. 8. The EPS Volume forecast is derived by combining forecasts for regulated utility and unregulated non -utility compression activity into an overall physical activity forecast. Enbridge Gas has excluded unregulated non -utility compression volumes and associated costs in deriving the Facility Carbon Charge cost to be recovered in regulated rates. The EPS Volume forecast for the Union rate zones includes transmission compression, storage compression, and dehydration fuel.5 9. Enbridge Gas's detailed calculations of the 2025 forecast compressor emissions, total annual emissions limit, EPS compliance obligation, and compressor fuel use cost for the Union rate zones can be found at Exhibit B, Tab 3, Schedule 4 to 6. 4 This includes both utility (regulated) and non -utility (unregulated) volumes. 5 The transmission and storage compression forecast is derived by combining forecasts for in -franchise and ex -franchise transmission and storage activity into an overall physical activity forecast. For dehydration fuel, average historical utilization is used to estimate the monthly forecasted usage. Page 121 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 3 Schedule 2 Page 1 of 1 Enbridge Gas Inc. Union Rate Zone 2025 Customer -Related Volumes bV Rate Class (April 2025 to March 2026 (103m) Col. 1 Col. 2 Col. 3 (Col. 1 - Col. 2) EPS Participant & Line Forecast Other Exempt No. Rate Class Volumes' Volumes2 Net Volumes 1 1 1,013,413 269 1,013,143 2 10 318,344 9,212 309,132 3 M1 3,220,995 2,156 3,218,839 4 M2 1,232,396 94,918 1,137,477 5 20 991,428 893,817 97,610 6 25 190,423 178,399 12,024 7 100 927,064 927,064 - 8 M4 585,465 247,538 337,928 9 M5 58,417 12,743 45,674 10 M7 810,074 636,246 173,828 11 M93 98,223 98,223 - 12 M 103 - - - 13 T1 407,282 329,596 77,686 14 T2 5,118,431 5,049,146 69,285 15 T33 255,661 255,661 - Total 16 Customer -Related 15,227,617 8,734,990 6,492,627 Notes: (1) Forecast Volumes after DSM from April 1, 2025 to March 31, 2026. (2) Estimated forecast volumes for mandatory and voluntary participants in the Emissions Performance Standards (EPS), volumes qualifying for exemption for non -covered activities, partial relief (80%) for greenhouse operators, hydrogen volumes and Renewable Natural Gas (RNG) volumes. RNG volumes include the year 5 volumes outlined in the Voluntary RNG Program Application (EB-2020-0066) and have been allocated equally between the EGD and Union rate zones for forecasting purposes. (3) Includes volumes delivered to downstream distributors and landfill gas. Page122 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 3 Schedule 3 Page 1 of 1 Enbridge Gas Inc. Union Rate Zone 2025 Facility -Related Volumes (103m) Col. 1 Col. 2 Col.3 (Col. 1 + Col.2) Non -Utility Forecast Line Utility Forecast Amount No. Particulars Amount (regulated) (unregulated) Total 2025 Forecast 1 Company Use - Buildings 1,941 34 1,975 2 Company Use - Boilers/Line Heaters 7,786 7,786 3 Company Use - NGV Fleet 33 - 33 4 Total Company Use' 9,761 34 9,795 5 Compressor Fue12 127,948 10,904 138,852 6 Total Facility -Related 137,708 10,938 148,647 Notes: (1) Forecast Company -Use volumes for April 1, 2025 to March 31, 2026. (2) Forecast Compressor Fuel for January 1 to December 31, 2025. Page123 Line No. Enbridge Gas Inc. Union Rate Zone Table 1 2025 Forecast Compressor Emissions Col.1 Col.2 Col.3 Col.4 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 3 Schedule 4 Page 1 of 1 Col. 5 Particulars Volumes' CO2 Emissions2 CH4 Emissions3 N20 Emissions4 CO2e Emissions5 (10 m) (Tonnes CO2) (Tonnes CH4) (Tonnes N20) (Tonnes CO2e) 1 Compressor Fuel & Transmission Ancillary Fuel 138,852 273,454 271 7 Notes: (1) Exhibit B, Tab 3, Schedule 3, Col. 3, Line 5. (2) Environment and Climate Change Canada "Canada's Greenhouse Gas Quantification Requirements - December 2023", Equation 2-9. (3) Col. 1 x Table 2, Col. 2, Line 1 x Table 2, Col. 2, Line 2. (4) Col. 1 x Table 2, Col. 3, Line 1 x Table 2, Col. 3, Line 2. (5) Col. 2 + (Col. 3 x Table 3, Col. 1, Line 1) + (Col. 4 x Table 3, Col. 2, Line 1). Table 2 Emission Factors Col.1 Col.2 Col.3 Line No. CO2 Emission CH4 Emission N20 Emission Particulars Units Factor Factor' Factor' 1 Natural Gas Pipelines Tonne/GJ 0.00005 0.0000013 2 Heat Value GJ/103m3 39.08 39.08 39.08 Notes: (1) Environment and Climate Change Canada "Canada's Greenhouse Gas Quantification Requirements - December 2023", Table 2-5. (2) Assumed Budget Heat Value = 39.08 GJ/103m3. In calculating actual emissions, actual heating value will be used. Table 3 Conversion Factors Col. 1 Line No. Particulars Units Methane' 1 Global Warming Potential for Carbon Dioxide Tonnes CO2e 28 Equivalent Notes: (1) Ontario Regulation 390/18: Greenhouse Gas Emissions: Quantification, Reporting and Verification, Schedule 1. 282,921 Col. 2 Nitrous Oxide' 265 Page 124 Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 3 Schedule 5 Page 1 of 1 Enbridge Gas Inc. Union Rate Zone 2025 Forecast EPS Obligation Col.1 Col.2 Col.3 Col.4 Col.5 Col.6 2025 2021 - 2023 Facility Forecast EGI Average 2025 Specific Total Annual EPS Line Compressor Emission Forecast Performance Emissions Compliance No. Emissions' Intensity Production Standard Limit4 Obligations (tCO2e) (tCO2e/MWh) (MWh) (tCO2e/MWh) (tCO2e) (tCO2e) 1 282,921 0.56 506,194 0.43 219,020 63,901 Notes: (1) Exhibit B, Tab 3, Schedule 4, Table 1, Col. 5. (2) Col. 1 / Col. 2. (3) MECP's GHG Emissions Performance Standards and Methodology for the Determination of the Total Annual Emissions Limit — March 2024, Formula 3.1.5-3. (4) Col. 3 x Col. 4. (5) Col. 1 - Col. 5. Page 125 Enbridge Gas Inc. Union Rate Zone 2025 Summary of Customer -Related and Facility -Related Costs Line No. Particulars Filed: 2024-09-26 EB-2024-0251 Exhibit B Tab 3 Schedule 6 Page 1 of 1 2025 Forecast Customer -Related Cost Forecast 1 Customer -related Forecast Volume (103m) (') 6,492,627 2 Federal Carbon Charge ($/m3) (2) 0.1811 3 Total Customer -Related Costs ($) 1,175,814,709 Facility -Related Cost Forecast 4 Company -Use Forecast Volume (103m) (3) 5 Federal Carbon Charge ($/m3) (2) 6 Company Use Costs ($) 7 8 9 10 11 12 EPS Obligation (tCO2e) 141 Excess Emissions Charge ($/tCO2e) (5) 9,761 0.1811 1,767,641 63,901 95.00 Compressor Fuel Use Costs ($) 6,070,553 Compressor Fuel Use Costs - Unregulated ($) (6) (476,719) Compressor Fuel Use Costs - Regulated ($) 5,593,833 Total Facility Related Costs ($) 7,361,475 13 Total Cost Forecast ($) 1,183,176,184 Notes: (1) Exhibit B,Tab 3, Schedule 2. Forecast volumes from April 1, 2025 to March 31, 2026. (2) Exhibit A, Table A-1. (3) Exhibit B, Tab 3, Schedule 3, Column 1, Line 4. Forecast volumes from April 1, 2025 to March 31, 2026. (4) Exhibit B, Tab 3, Schedule 5. Forecast from January 1 to December 31, 2025. (5) EPS Regulation, Section 11.1. (6) Unregulated EPS costs are allocated based on pro-rata regulated/unregulated total compressor volumes per Exhibit B, Tab 3, Schedule 3. Page126 Filed: 2024-09-26 EB-2024-0251 Exhibit C Tab 1 Schedule 1 Page 1 of 13 DEFERRAL AND VARIANCE ACCOUNTS 1. The purpose of this exhibit of evidence is to address deferral and variance account matters associated with Enbridge Gas's Application. As outlined in the Application, Enbridge Gas is seeking disposition of 2023 balances in FCPP-related deferral and variance accounts, excluding the Customer Carbon Charge — Variance Accounts (CCCVAs), for each of the EGD rate zone and Union rate zones. Allocation and disposition of 2023 deferral and variance account balances is discussed in detail at Exhibit D, Tab 1, Schedule 1. 2. This exhibit of evidence is organized as follows: 1. Established FCPP-Related Deferral and Variance Accounts 2. 2023 FCPP-Related Deferral and Variance Account Balances 2.1. 2023 Administration Costs Recorded in the Greenhouse Gas Emissions Administration Deferral Account (GGEADA) 2.2. 2023 Customer -Related Costs Recorded in the Customer Carbon Charge — Variance Account (CCCVA) 2.3. 2023 Facility -Related Costs Recorded in the Facility Carbon Charge — Variance Account (FCCVA) 3. Forecast 2025 Administration Costs (for informational purposes only) 1. Established FCPP-Related Deferral and Variance Accounts 3. In its 2019 Application, to facilitate compliance with the GGPPA in 2019 and beyond and ensure that the costs of compliance with the GGPPA were clearly delineated from those incurred under the Cap -and -Trade Program, Enbridge Gas requested OEB approval to establish five new deferral and variance accounts. The new accounts would record: (i) actual combined administration costs for all rate zones (effective January 1, 2019); (ii) Federal Carbon Charge cost variances between the actual costs incurred and the amount collected through rates related to the volumes delivered by Enbridge Gas for each of the EGD rate zone and Union rate zones (effective April 1, 2019); and (iii) Facility Carbon Charge cost variances between the Page127 Filed: 2024-09-26 EB-2024-0251 Exhibit C Tab 1 Schedule 1 Page 2 of 13 actual costs incurred and the amount collected through rates related to Company Use and Emissions Performance Standards (EPS) volumes associated with Enbridge Gas's own operations for each of the EGD rate zone and the Union rate zones (effective January 1, 2019).1 4. In the OEB's Decision and Order on Enbridge Gas's 2019 Application, the OEB approved the establishment of Enbridge Gas's requested new FCPP-related deferral and variance accounts with a single exception; rather than approving a single deferral account to record the combined administration costs for all rate zones, the OEB directed that Enbridge Gas should establish two GGEADAs, one for each of the EGD rate zone and the Union rate zones.2 5. In its 2022 Application, Enbridge Gas applied to the OEB for approval to amend the wording of the FCPP-related deferral and variance accounting orders to recognize the transition from the federal OBPS to the provincial EPS.3 To reflect this change, Enbridge Gas requested to update the applicable account definitions to include reference to both federal and provincial regulations and update the applicable account names to remove the word "Federal", effective January 1, 2022. In its Decision and Order regarding the 2022 Application, the OEB approved the amendments to the wording of the FCPP deferral and variance accounting orders as filed.4 6. Accordingly, until December 31, 2023, Enbridge Gas's established FCPP-related deferral and variance accounts were: EB-2018-0205, Exhibit D, Tab 1, Schedule 1, pp.2-4. 2 EB-2018-0205, OEB Decision and Order, July 4, 2019, pp.9-10. 3 EB-2021-0209, Exhibit C, p.3. 4 EB-2021-0209, OEB Decision and Order, February 10, 2022, p.10. Page128 Filed: 2024-09-26 EB-2024-0251 Exhibit C Tab 1 Schedule 1 Page 3 of 13 1. GGEADA — EGD Rate Zone;' 2. GGEADA — Union Rate Zones;6 3. CCCVA — EGD Rate Zone;' 4. CCCVA — Union Rate Zones;$ 5. FCCVA — EGD Rate Zone;9 and 6. FCCVA — Union Rate Zones.10 7. In its 2024 Phase 1 Rebasing Application, Enbridge Gas proposed to harmonize the established FCPP-related deferral and variance accounts effective January 1, 2024, due to the Company being an amalgamated entity and no longer requiring separate deferral and variance accounts for the EGD and Union rate zones. I' As part of the Settlement Proposal, parties agreed on harmonizing the FCPP deferral and variance accounts, with one modification; the deferral account would be renamed and the scope would be limited.12 The OEB approved the harmonization and changes to the FCPP deferral and variances accounts in its Decision on the Settlement Proposal to Enbridge Gas's 2024 Phase 1 Rebasing Application.13 8. Accordingly, effective January 1, 2024, Enbridge Gas's harmonized FCPP-related deferral and variances accounts are:14 5 EGD Rate Zone Account No. 179-501, to record the administration costs associated with the impacts of federal and provincial regulations related to greenhouse gas emission requirements for Enbridge Gas within the EGD rate zone effective January 1, 2019. 6 Union Rate Zones Account No. 179-422, to record the administration costs associated with the impacts of federal and provincial regulations related to greenhouse gas emission requirements for Enbridge Gas within the Union rate zones effective January 1, 2019. EGD Rate Zone Account No. 179-502, to record the variances between actual customer carbon costs and customer carbon costs recovered in rates for distribution volumes delivered by Enbridge Gas within the EGD rate zone effective April 1, 2019. Except for exempted customers as explained in Exhibit A. 8 Union Rate Zones Account No. 179-421, to record the variances between actual customer carbon costs and customer carbon costs recovered in rates for distribution volumes delivered by Enbridge Gas within the Union rate zones effective April 1, 2019. Except for exempted customers as explained in Exhibit A. 9 EGD Rate Zone Account No. 179-503, to record the variance between actual facility carbon costs and facility carbon costs recovered in rates within the EGD rate zone effective January 1, 2019. 10 Union Rate Zones Account No. 179-420, to record the variance between actual facility carbon costs and facility carbon costs recovered in rates within the Union rate zones effective January 1, 2019. 11 EB-2022-0200, Exhibit 9, Tab 1, Schedule 1. 12 EB-2022-0200, Partial Settlement Proposal, June 28, 2023, Exhibit 01, Tab 1, Schedule 1, pp. 53-55. 13 EB-2022-0200, Decision on Settlement Proposal, August 17, 2023, p.1. 14 EB-2022-0200, Partial Settlement Proposal, June 28, 2023, Exhibit 01, Tab 1, Schedule 2, pp.29-31. Page129 Filed: 2024-09-26 EB-2024-0251 Exhibit C Tab 1 Schedule 1 Page 4 of 13 1. Carbon Charges Bad Debt Deferral Account (CCBDDA) — Enbridge Gas Inc.;15 2. CCCVA — Enbridge Gas Inc.;16 and 3. FCCVA — Enbridge Gas Inc.17 3. 2023 FCPP-Related Deferral and Variance Account Balances 9. Enbridge Gas is seeking to dispose of: 2023 administration costs of $7.40 million in the GGEADAs and 2023 facility -related costs of ($5.41 million) in the FCCVAs. 3.1 2023 Administration Costs Recorded in the GGEADA 10.As set out in Table 1, Enbridge Gas's 2023 administration costs are $7.40 million. A description of variances to Enbridge Gas's forecast 2023 administration costs follows: 15 Enbridge Gas Inc. Account No. 179-309, to record all of the bad debt related to carbon charges. 16 Enbridge Gas Inc. Account No. 179-308, to record the variance between actual customer carbon costs and the customer carbon costs recovered in rates. 17 Enbridge Gas Inc. Account No. 179-307, to record the variance between actual facility carbon costs and facility carbon costs recovered in rates. Page130 Filed: 2024-09-26 EB-2024-0251 Exhibit C Tab 1 Schedule 1 Page 5 of 13 Table 1 2023 Administration Costs ($millions) 2023 Actual Costs19 2023 EGD Union Line Forecasted Rate Rate No. Cost Element Costs18 Zone Zones Total Variance 1 IT Billing 0.05 0.00 0.05 0.05 (0.00) System 2 Staffing 1.45 0.87 0.53 1.40 (0.05) Resources 3 Consulting and External 0.34 0.00 0.00 0.0020 (0.34) Legal Support 4 GHG Reporting and 0.05 0.01 0.01 0.02 (0.03) Verification 5 Bad Debt 5.16 3.24 2.01 5.26 0.09 6 Other Miscellaneous 0.14 0.02 0.01 0.03 (0.11) Costs 7 Interest21 N/A 0.39 0.24 0.63 0.63 8 Total 7.20 4.54 2.86 7.40 0.20 11. Shared administration costs set out in Table 1, including costs related to: staffing resources, consulting and external legal support, GHG reporting and verification and other miscellaneous costs, have been allocated to the EGD rate zone and Union rate zones in proportion to actual customers' consumption volumes subject to the Federal Carbon Charge from January 1, 2023 to December 31, 2023.22 Unique administration costs set out in Table 1 that are attributable to a particular rate zone, including costs related to IT billing systems and bad debt, have been allocated to that respective rate zone accordingly. Each of the cost categories set out in Table 1 is further discussed below. 18 EB-2022-0194, , Exhibit C, p.10. 19 Composed of actual 2023 costs from January to December 2023. 20 Actual consulting and external legal support costs are less than three thousand dollars. 21 Enbridge Gas did not include a 2023 forecast cost for interest. 22 Approximately 62% of customer consumption volumes were attributable to the EGD rate zone and 38% of customer consumption volumes were attributable to the Union rate zones. Page 131 Filed: 2024-09-26 EB-2024-0251 Exhibit C Tab 1 Schedule 1 Page 6 of 13 12. In the OEB's Decision and Order on Enbridge Gas's 2023 Application, the OEB determined that the 2021 level of administration costs were sufficient, specifically in the areas of staffing resources, consulting and external legal support, and other miscellaneous costs.23 In 2021, the total cost related to these three administrative areas was $1.49 million.24 13. In Enbridge Gas's reply submission in the 2024 Application, in relation to administrative costs, Enbridge Gas noted that the focus should be on total administration costs within the GGEADAs regardless of the number of staffing resources, and that as long as total administration costs adhere to the OEB's direction from the 2023 Application, there should be no requirement to further restrict staffing resources.25 In response, the OEB stated the following within the Decision and Order on Enbridge Gas's 2024 Application: The OEB agrees with Enbridge Gas that, rather than a cap on staffing resources, the focus should be the total administration costs related to its Federal Carbon Pricing Program work. However, the OEB expects Enbridge Gas to continue to contain its total administration costs consistent with direction provided in the OEB's 2023 Federal Carbon Pricing Program Decision that indicated the OEB expected the then current level of administrative costs to be sufficient.26 14. In accordance with the OEB's direction, in 2023, the administration costs in the three stipulated administrative areas totalled $1.46 million,27 reflecting a decrease of $0.03 million below the approved 2021 administration costs included in the OEB's direction in the Decision and Order on the 2023 Application. 23 EB-2022-0194, OEB Decision and Order, February 9, 2023, pp.9-10. 24 EB-2022-0194, Exhibit C, Tab 1, Schedule 1, p.4. GHG Reporting and Verification costs have been included in the $1.49 million as these costs are a category of consulting costs. 25 EB-2023-0196, Reply Submission, January 22, 2024, p.3. 26 EB-2023-0196, OEB Decision and Order, February 8, 2024, pp.7-8. 27 Includes total 2023 costs from Staffing Resources, Consulting and External Legal Support, GHG Reporting and Verification, and Other Miscellaneous Costs from Table 1. Total may differ slightly due to rounding. Page132 Filed: 2024-09-26 EB-2024-0251 Exhibit C Tab 1 Schedule 1 Page 7 of 13 IT Billing System Costs 15. In its 2023 Application, Enbridge Gas forecast IT billing system costs of $0.05 million related to the revenue requirement associated with the additional billing system modification required in 2020 for the Union rate zones to comply with the GGPPA.28 16.The actual IT billing system costs for 2023 were $0.05 million, all of which was related to the revenue requirement for the additional billing system modifications required for the Union rate zones. Staffing Resources 17. In its 2023 Application, Enbridge Gas updated its 2023 staffing resources forecast to be $1.45 million for salaries and wages, which included fully allocated costs for the 6.5 full time equivalents (FTEs) that comprised the Carbon Strategy team at that time, plus one additional FTE.29 18.Actual salaries and wages costs incurred in 2023 were $1.40 million for the 7.5 FTEs comprising the Carbon Strategy team throughout 2023. Actual staffing and wages costs were $0.05 million lower than forecast due to variances between actual individual FTE wages and the average FTE wage used to estimate the forecasted staffing costs. Consulting and External Legal Support 19. In its 2023 Application, Enbridge Gas forecast consulting and external legal support costs of $0.34 million for 2023.30 Actual consulting and external legal support costs incurred in 2023 were less than $3,000. Consulting and external legal support costs were lower than forecast due to Enbridge Gas leveraging internal FTE resources where applicable, rather than engaging external consulting resources, and utilizing 28 EB-2022-0194, Exhibit C, pp.10-11. 29 EB-2022-0194, Exhibit C, pp.11-12. 30 EB-2022-0194, Exhibit C, p.12. Page133 Filed: 2024-09-26 EB-2024-0251 Exhibit C Tab 1 Schedule 1 Page 8 of 13 the credit procurement work completed in 2021 for credit transactions completed in 2023. GHG Reporting and Verification 20. In its 2023 Application, Enbridge Gas forecast costs of $0.05 million for GHG reporting and verification of its 2022 EPS emissions, completed in 2023.31 Actual GHG reporting and verification costs incurred in 2023 were $0.02 million, all of which were related to the verification of its 2022 EPS report by a third -party auditor as required under the EPS Regulations. GHG reporting and verification costs were lower than forecast due to the removal of Ontario from the federal OBPS, resulting in streamlined verification. Additionally, Enbridge Gas changed its third -party auditor in 2023 which resulted in a reduction to the verification costs. Bad Debt 21. In its 2023 FCPP Application, Enbridge Gas forecast bad debt costs to be $5.16 million in 2023.32 Actual bad debt costs incurred in 2023 were $5.26 million. 22.As outlined in EB-2021-0209, Exhibit I.VECC.7, the bad debt forecasting methodology distinguishes FCPP-related bad debt from "regular" bad debt by taking a percentage of the total Company bad debt based on the percentage of the total bill related to FCPP. The contributing factor to the forecast variance is an increase in actual total Company bad debt from what was forecast. 23. The $5.26 million represents total 2023 bad debt related to the Federal Carbon Charge, with no amount removed due to COVID-19 impacts. Since the start of the COVID-19 pandemic in 2020, bad debt has increased for reasons that go beyond COVID-19 impacts; for example, the annual increase in Federal Carbon Charge rate in proportion to the total bill, and the year -over -year increase in total bad debt as a function of historic arrear balances, bankruptcy, gas prices, unemployment, inflation 31 EB-2022-0194, Exhibit C, pp.12-13. 32 EB-2022-0194, Exhibit C, p.13. Page134 Filed: 2024-09-26 EB-2024-0251 Exhibit C Tab 1 Schedule 1 Page 9 of 13 and general economic factors. Due to these factors impacting bad debt by varying degrees, it is not possible to isolate the bad debt increases as a function of a single cause and then translate that into a specific dollar amount of impact, whether that be due to COVID-19 impacts or any other general economic impacts. Therefore, Enbridge Gas is unable to segregate COVID-19 impacts from the regular FCPP- related bad debt allocated to the 2023 GGEADAs. Other Miscellaneous Costs 24. In its 2023 Application, Enbridge Gas forecast 2023 other miscellaneous costs of $0.14 million associated with customer outreach and communications, training, conferences, travel expenses, memberships, and subscriptions associated with the GGPPA, EPS Regulation, or other GHG or carbon pricing programs.33 Actual other miscellaneous costs incurred in 2023 were $0.03 million. Costs related to activities such as travel and conferences were lower due to many internal and external events proceeding virtually, therefore reducing actual miscellaneous costs. Enbridge Gas also leveraged existing customer communication pathways, such as QRAM bill inserts, mass emails, webpages, and social media to communicate to customers regarding the FCPP, thus reducing actual 2023 costs related to customer communications. 3.2 2023 Customer -Related Costs Recorded in the CCCVA 25. Enbridge Gas tracks the difference between the Federal Carbon Charge amount collected through rates and the actual costs incurred in the CCCVAs for each of the EGD rate zone and the Union rate zones. Enbridge Gas's customer -related obligation for January 1, 2023 to December 31, 2023 was $1,777.61 million. 26. In Enbridge Gas's 2024 Application, the Company proposed to defer disposition of the balances within the 2022 CCCVAs due to the inability to generate a unit rate 33 EB-2022-0194, Exhibit C, p.13. Page135 Filed: 2024-09-26 EB-2024-0251 Exhibit C Tab 1 Schedule 1 Page 10 of 13 from the minor balances.34 The cumulative balance of the 2022 and 2023 CCCVAs, including interest, results in a total balance of ($0.03 million); ($26,878) for the EGD rate zone and ($3,356) for the Union rate zones. This reflects a variance between the amount of revenue billed through the Federal Carbon Charge and the subsequent amount Enbridge Gas remitted to the CRA. 27. The variances recorded are due to deliveries of renewable natural gas (RNG) and hydrogen to customers in 2023, through the Company's OptUp progam and Low Carbon Energy Project (LCEP), respectively. Under the GGPPA and Fuel Charge Regulations, RNG and hydrogen are not subject to the Federal Carbon Charge. 28. Due to billing system functionality constraints, Enbridge Gas cannot reduce the Federal Carbon Charge only on the portion of a system supply customer's bill that is RNG or hydrogen. Given the limited quantity of exempt fuels delivered to customers to date, modifying the billing system to implement this functionality would significantly increase administrative complexity and costs, for limited economic benefit to customers. Thus, Enbridge Gas applies the Federal Carbon Charge to all volumes of gas delivered to customers, including on the RNG and hydrogen volumes. As RNG and hydrogen delivered by Enbridge Gas reduces the Company's Federal Carbon Charge obligations and subsequent remittance to the CRA, any variance between the Federal Carbon Charges remitted to the CRA and the amount charged to customers are tracked in the CCCVAs, to be disposed to all customers subject to the Federal Carbon Charge.35 29. The variances are minor due to lower -than -expected participation in the OptUp program, leading to Enbridge Gas only procuring a small amount of RNG in 2023. Additionally, as hydrogen is only being distributed through the LCEP pilot project to a limited amount of customers, the hydrogen volumes eligible for exemption are small. 34 EB-2023-0196, Exhibit C, pp. 9-10. 35 EB-2020-0066, Decision and Order, September 24, 2020, pp.16-17. Page136 Filed: 2024-09-26 EB-2024-0251 Exhibit C Tab 1 Schedule 1 Page 11 of 13 30. The cumulative balance within the CCCVAs for 2022 and 2023 remain minor and, therefore, Enbridge Gas is proposing to defer disposition until the balances become substantial enough to allow for generation of a unit rate that could credit customers. Enbridge Gas will assess the cumulative balances within the CCCVAs next year and, if the balances are significant enough to generate a unit rate, Enbridge Gas will seek approval to dispose of the CCCVAs through the 2026 FCPP Application. 3.3 2023 Facility -Related Costs Recorded in the FCCVA 31. As set out in Exhibit A, Tab 2, Schedule 1, Enbridge Gas's facility -related volumes and associated costs are composed of Company Use Volumes (facilities which are not covered under the EPS) and EPS Volumes from January 1, 2023 to December 31, 2023. Enbridge Gas's 2023 facility -related obligation was $3.99 million ($1.78 million related to Company Use Volumes and $2.21 million related to EPS Volumes), of which $3.74 million is attributable to Enbridge Gas's regulated utility operations. 32. Enbridge Gas has recorded a 2023 facility -related variance of ($5.41 million) in the FCCVAs, including ($0.16 million) for the EGD rate zone and ($5.26 million) for the Union rate zones.36 This reflects a variance between the actual and forecast facility - related costs, and a variance in the amount of revenue billed through the Facility Carbon Charge due to a difference in customer volumes realized. The FCCVAs variance includes $0.03 million in cost savings related to the procurement of EPUs in November 2023, for use towards Enbridge Gas's 2022 EPS compliance obligation, as the 2022 FCCVAs balances were already finalized by the time the EPU transaction was completed.37 Table 2 shows the variance related to the difference 36 This variance reflects consideration of: (i) applying the Federal Carbon Charge Rate for Marketable Natural Gas of 9.79 ¢/m3 from January 1, 2023 — March 31, 2023 and 12.39 ¢/m3 from April 1, 2023 to December 31, 2023 set out in Exhibit A, Tab 2, Schedule 1, Table 1 to actual Company Use Volumes of natural gas consumed in the operation of Enbridge Gas's facilities from January 1, 2023 to December 31, 2023; (ii) Enbridge Gas's 2023 EPS obligation of $1.96 million related to regulated utility operations for the January 1, 2023 to December 31, 2023 period; (iii) actual billed amounts for the January 1, 2023 to December 31, 2023 period; (iv) $0.03 million in cost savings related to EPU procurement for 2022 EPS obligation; and (v) interest of approximately $(0.59) million. 37 EB-2023-0196, Exhibit I.STAFF.2. Page137 Filed: 2024-09-26 EB-2024-0251 Exhibit C Tab 1 Schedule 1 Page 12 of 13 between 2023 forecast regulated facility -related volumes and actual regulated facility -related volumes for 2023. Table 238 2023 Regulated Facility -Related Volumes/Emissions and Costs Updated 2023 Updated 2023 2023 Actual 2023 Actual Forecasted Forecasted Volumes & Costs Variance Volumes & Costs Emissions ($millions) ($millions) Emissions ($millions) Company Use 18,673103m3 2.09 16,020103m3 1.77 0.32 EPS 78,805 tCO2e39 5.12 30,221 tCO2e4O 1.96 3.16 Total - 7.21 - 3.74 3.48 33.The main driver of the ($3.48 million) variance is related to the difference between 2023 forecast regulated EPS emissions and actual regulated EPS emissions. EPS compressor fuel volumes and associated emissions were lower than forecast due to a mild winter and a modification in contracted transportation, which changed the activity along the Dawn to Parkway system, resulting in lower compressor fuel consumption. Additionally, the 2023 emissions intensity (tCO2e/MWh) related to transmission and storage operations was lower than anticipated, resulting in lower EPS emissions and, therefore, a lower compliance obligation. 4. Forecast 2025 Administration Costs 34. In Enbridge Gas's 2024 Phase 1 Rebasing Application, the Company proposed to consolidate the two GGEADAs into one Enbridge Gas account and recover administrative costs associated with current federal and provincial regulations related to GHG emissions requirements through 2024 base rates, except for bad debt.41 38 Only volumes/emissions and associated costs related to regulated utility operations are included. 39 Represents regulated portion of Enbridge Gas's forecasted 2023 EPS compliance obligation. 40 Represents regulated portion of Enbridge Gas's actual 2023 EPS compliance obligation. 41 EB-2022-0200, Exhibit 9, Tab 1, Schedule 2, p.25. Page138 Filed: 2024-09-26 EB-2024-0251 Exhibit C Tab 1 Schedule 1 Page 13 of 13 35.In the Settlement Proposal to Enbridge Gas's 2024 Phase 1 Rebasing Application, parties agreed to consolidating the GGEADAs into a single Enbridge Gas account, on the condition the GGEADA be renamed the CCBDDA and the scope of the account be limited to recording bad debt costs associated with carbon charges.42 The OEB approved these account modifications, effective January 1, 2024, in its Decision on the Settlement Proposal.43 36. Enbridge Gas has provided a forecast for the 2025 bad debt costs for informational purposes only and will seek recovery of its actual 2025 bad debt costs in a future proceeding. Table 3 Forecast 2025 Bad Debt Costs 2025 Total Forecast Costs Cost Element ($millions) Bad Debt 13.05 37. Enbridge Gas estimates that it will incur approximately $13.05 million in incremental bad debt expenses in 2025 based on forecasted costs recoverable from customers as a result of the GGPPA and EPS Regulation, as set out in Exhibit B, Tab 1, Schedule 1. While Enbridge Gas has included total 2025 forecast bad debt costs in Table 3, only actual bad debt related to the GGPPA and EPS Regulation will be recorded in the CCBDDA. 42 EB-2022-0200, Partial Settlement Proposal, June 28, 2023, Exhibit 01, Tab 1, Schedule 1, pp.53-55. 43 EB-2022-0200, Decision on Settlement Proposal, August 17, 2023, p.1. Page139 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 1 Schedule 1 Page 1 of 6 COST RECOVERY 1. The purpose of this exhibit is to support Enbridge Gas's request to update the impacts of the GGPPA and EPS Regulation in rates for the EGD and Union rate zones, effective April 1, 2025, and to address the proposed allocation and disposition of Enbridge Gas's 2023 FCPP-related deferral and variance account balances, as described at Exhibit C, Tab 1, Schedule 1. Accordingly, Enbridge Gas requests approval of: (i) the proposed rate changes on a final basis, effective as early as April 1, 2025; and (ii) the allocation and disposition of the 2023 FCPP- related deferral and variance account balances, excluding the Customer Carbon Charge — Variance Accounts (CCCVAs), to be disposed of in the first available ARAM following an OEB decision as early as April 1, 2025.' 2. This exhibit of evidence is organized as follows: 1. 2025 FCPP-Related Unit Rates 1.1 2025 Federal Carbon Charge 1.2 2025 Facility Carbon Charge 1.3 2025 Administration Costs 1.4 Bill Impacts of Carbon Charges 2. 2023 Deferral and Variance Account Balances 2.1 2023 CCCVA 2.2 2023 FCCVA 2.3 2023 GGEADA 2.4 Proposed Disposition of Deferral and Variance Account Balances 2.5 Bill Impacts of Deferral and Variance Account Disposition Refer to Exhibit C, Tab 1, Schedule 1 for more information on the proposal to defer disposition of the CCCVAs. Page140 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 1 Schedule 1 Page 2 of 6 Supporting schedules and appendices: • Exhibit D, Tab 2, Schedules 1 to 5: Cost Recovery - EGD Rate Zone • Exhibit D, Tab 3, Schedules 1 to 5: Cost Recovery - Union Rate Zones 1. 2025 FCPP-Related Unit Rates 3. Under the GGPPA, Enbridge Gas is required to remit payment of the Federal Carbon Charge to the Government of Canada for volumes delivered to its customers and for Company Use Volumes. Enbridge Gas is also required to remit payment for any excess emissions related to EPS Volumes. These costs will be recovered from customers through the Federal Carbon Charge and Facility Carbon Charge unit rates, respectively. 4. The Federal Carbon Charge and Facility Carbon Charge unit rates are summarized at Exhibit D, Tab 2, Schedule 1, page 3 for the EGD rate zone and at Exhibit D, Tab 3, Schedule 1, page 3 for the Union rate zones. 1.1 2025 Federal Carbon Charge 5. Effective April 1, 2025, Enbridge Gas proposes to increase the Federal Carbon Charge from 15.2500 ¢/m3 (or $80/tCO2e) to 18.1100 ¢/m3 (or $95/tCO2e), as outlined in the GGPPA and set out at Exhibit A, Tab 2, Schedule 1, Table 1.2 6. The Federal Carbon Charge is applicable to distribution customers in all rate zones. Entities that are exempt under Part 1 of the GGPPA will not be charged the Federal Carbon Charge. Further, in accordance with Part 1 of the GGPPA, Enbridge Gas will apply 20% of the Federal Carbon Charge to distribution volumes for eligible commercial greenhouse customers, resulting in 80% greenhouse relief. The Federal Carbon Charge is shown as a separate line item on customers' bills, where applicable. 2 The GGPPA, Schedule 2 and Schedule 4, https://laws-lois.iustice.gc.ca/PDF/G-11.55.pdf. Page 141 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 1 Schedule 1 Page 3 of 6 7. Enbridge Gas will track the difference between the Federal Carbon Charge amount collected through rates and the actual costs incurred in the CCCVA. 8. The Federal Carbon Charge customer -related forecast volumes and costs by rate class for the April 1, 2025 to March 31, 2026 period is set out at Exhibit D, Tab 2, Schedule 1, page 1 for the EGD rate zone and at Exhibit D, Tab 3, Schedule 1, page 1 for the Union rate zones. 1.2 2025 Facility Carbon Charge 9. Enbridge Gas incurs costs of compliance with the GGPPA and EPS Regulation that are associated with its own operations. Enbridge Gas's Facility Carbon Charge costs are incurred in relation to both Company Use Volumes (generated from distribution buildings, boilers/line heaters, and NGV fleet volumes), and EPS Volumes (generated from compressor fuel volumes). The total estimated Facility Carbon Charge cost for the April 1, 2025 to March 31, 2026 time period is $8.94 million: $1.58 million for the EGD rate zone and $7.36 million for the Union rate zones, as detailed at Exhibit B, Tab 2, Schedule 1 and at Exhibit B, Tab 3, Schedule 1, respectively. 10. Enbridge Gas recovers Facility Carbon Charge costs from rate classes based on en- franchise delivery volumes and ex -franchise transportation volumes. All customers in each rate class are responsible for the Facility Carbon Charge costs, regardless of whether the customer is exempt from the Federal Carbon Charge. Enbridge Gas adds the Facility Carbon Charge to the current approved delivery or transportation charges on customers' bills. 11. A common Facility Carbon Charge was approved by the OEB in its Decision and Order for the Company's 2023 Application3, for implementation with Enbridge Gas's 3 EB-2022-0194 Decision and Order, February 9, 2023, pp.7- 8. Page142 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 1 Schedule 1 Page 4 of 6 January 1, 2024 ARAM. Effective as early as April 1, 2025, Enbridge Gas is proposing to increase the common Facility Carbon Charge from 0.0143 ¢/m3 to 0.0172 ¢/m3. When expressed in $/GJ, the Facility Carbon Charge remains unchanged at $0.004/GJ. The derivation of the 2025 Facility Carbon Charge is detailed at Exhibit D, Tab 2, Schedule 1, page 2 and Exhibit D, Tab 3, Schedule 1, page 2. 12. Enbridge Gas will track the difference between the Facility Carbon Charge amount collected through rates and the actual costs incurred in the FCCVA. 1.3 2025 Administration Costs 13.Administration costs incurred in 2025 will be recorded in the CCBDDA and disposed of in a future proceeding, as described at Exhibit A, Tab 2, Schedule 1 and Exhibit C, Tab 1, Schedule 1. 1.4 Bill Impacts of Carbon Charges 14. For the EGD rate zone, the 2025 carbon charges for a typical residential customer with an annual consumption of 2,400 m3 are $435.05 per year, which is an increase of $68.71 per year over 2024. Exhibit D, Tab 2, Schedule 2 details bill impacts for typical customers in the EGD rate zone. 15. For the Union rate zones, the 2025 carbon charges for a typical residential customer with an annual consumption of 2,200 m3 are $398.80 per year, which is an increase of $62.98 per year over 2024. Exhibit D, Tab 3, Schedule 2 details bill impacts for typical customers in the Union rate zones. 2. 2023 Deferral and Variance Account Balances 16. Enbridge Gas is requesting approval of the allocation and disposition of the 2023 final balances in its GGEADA and FCCVA for each of the EGD and Union rate zones. Although there are small balances in the CCCVAs for both the EGD and Page143 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 1 Schedule 1 Page 5 of 6 Union rate zones, Enbridge Gas is proposing to defer disposition of these accounts until the balances are larger. A description of 2023 FCPP-related deferral and variance account balances is provided at Exhibit C, Tab 1, Schedule 1. The deferral and variance account balances are provided at Exhibit D, Tab 2, Schedule 3 for the EGD rate zone and at Exhibit D, Tab 3, Schedule 3 for the Union rate zones. 2.1 2023 CCCVA 17. As per Exhibit C, Tab 1, Schedule 1, Enbridge Gas proposes to defer disposition of the CCCVA balances. 2.2 2023 FCCVA 18. Enbridge Gas proposes to allocate FCCVA balances to rate classes in proportion to actual in -franchise distribution and ex -franchise transportation volumes from January 1, 2023 to December 31, 2023. Unit rates for disposition are derived using actual volumes for the January 1, 2023 to December 31, 2023 time period. The methodology to derive the allocation and disposition unit rates is the same for the EGD and Union rate zones. 2.3 2023 GGEADA 19. Enbridge Gas proposes to allocate GGEADA balances to rate classes in proportion to the number of customers for the EGD rate zone and 2013 OEB-approved administrative and general expenses for the Union rate zones. The proposed allocation methodologies for each rate zone are consistent with the allocations approved in the disposition of Enbridge Gas's 2022 FCPP-related deferral and variance account balance.4 Unit rates for disposition are derived using actual volumes for the January 1, 2023 to December 31, 2023 time period. The methodology to derive the disposition unit rates is the same for the EGD and Union rate zones. 4 EB-2023-0196. Page144 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 1 Schedule 1 Page 6 of 6 2.4 Proposed Disposition of Deferral and Variance Account Balances 20. Enbridge Gas proposes to dispose of the balances with a one-time billing adjustment recovered in one month for all customers in the EGD and the Union rate zones. 21. Enbridge Gas proposes to dispose of the approved 2023 FCPP-related deferral and variance account balances with the first ARAM application following the OEB's approval, as early as April 1, 2025. Unit rates for disposition can be found at Exhibit D, Tab 2, Schedule 4 for the EGD rate zone and at Exhibit D, Tab 3, Schedule 4 for the Union rate zones. 2.5 Bill Impacts of Deferral and Variance Account Disposition 22. For the EGD rate zone, the bill impact of the proposed deferral and variance account balance disposition for a typical residential customer with annual consumption of 2,400 m3 is $2.13. Exhibit D, Tab 2, Schedule 5 details the customer bill impacts for typical customers in the EGD rate zone. 23. For the Union rate zones, the bill impact of the proposed deferral and variance account balance disposition for a typical residential customer with annual consumption of 2,200 m3 is $1.12 for customers in the Union North rate zone and $0.85 for customers in the Union South rate zone. Exhibit D, Tab 3, Schedule 5 details customer bill impacts for typical customers in the Union rate zones. Page145 Line No. Particulars 1 Rate 1 2 Rate 6 3 Rate 100 4 Rate 110 5 Rate 115 6 Rate 125 7 Rate 135 8 Rate 145 9 Rate 170 10 Rate 200 11 Rate 300 12 Rate 332 13 Total EGD Rate Zone Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 2 Schedule 1 Page 1 of 3 ENBRIDGE GAS INC. EGD Rate Zone 2025 Customer -Related Volumes and Derivation of Federal Carbon Charge Unit Rate Effective April 1, 2025 Forecast Less: Customer -Related EPS Participant & Federal Federal Federal Carbon Volumes Transportation Forecast Other Exempt Volumes Net Volumes Carbon Charge Carbon Cost Charge Unit Rate (103m) (1) Volumes (10323) Volumes (103m) (2) (103m) (3) (103m) ($/m3) (4) ($) (cents/m3) (a) (b) (c) _ (a - b) (d) (e) _ (c - d) (f) (g) _ (e * f * 1000) (h) _ (g/(e*1000))*100 5,055,608 - 5,055,608 1,043 5,054,565 0.1811 915,381,787 4,658,867 - 4,658,867 106,475 4,552,392 0.1811 824,438,156 53,972 - 53,972 19,714 34,258 0.1811 6,204,144 1,267,962 - 1,267,962 527,192 740,770 0.1811 134,153,444 365,873 - 365,873 363,834 2,038 0.1811 369,147 1,042,065 - 1,042,065 1,042,065 - 0.1811 - 62,123 - 62,123 4,445 57,678 0.1811 10,445,519 26,147 - 26,147 15,084 11,063 0.1811 2,003,511 251,363 - 251,363 215,084 36,279 0.1811 6,570,145 188,372 - 188,372 188,372 - 0.1811 - - - - - - 0.1811 - 2,254,826 2,254,826 - - - 0.1811 - 15,227,180 2,254,826 12,972,354 4483,310 10,489,044 1,899,565,854 18.1100 Notes: (1) Exhibit B, Tab 2, Schedule 2, Col. 1 + Rate 332 forecast volume. (2) Exhibit B, Tab 2, Schedule 2, Col. 1. (3) Exhibit B, Tab 2, Schedule 2, Col. 2. (4) Exhibit B, Tab 2, Schedule 6, Line 2. Page146 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 2 Schedule 1 Page 2 of 3 ENBRIDGE GAS INC. EGD Rate Zone Derivation of 2025 Facility Carbon Charge Effective April 1, 2025 Line Enbridge Gas No. Particulars Combined (a) 1 Total Facility Carbon Cost ($000's) (1) 8,942 2 2024 Forecast Volumes (103m) (2) 51,856,157 3 Facility Carbon Charge (cents / m3) (line 1 / line 2 * 100) 0.0172 4 Facility Carbon Charge ($/GJ) (line 3 / Heat Value * 10) (3) 0.004 Notes: (1) Exhibit B, Tab 2, Schedule 6, Line 12/1000 + Exhibit B, Tab 3, Schedule 6, Line 12/1000. (2) Exhibit D, Tab 2, Schedule 1, Page 1, Column (a), Line 13 + Exhibit D, Tab 3, Schedule 1, Column (a), Line 24. (3) Per Exhibit D, Tab 1, Schedule 1, the common Facility Carbon Charge is applicable to all customers. Conversion to GJs based on heat value adjustment of 39.09 GJ/103m3. Page147 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 2 Schedule 1 Page 3 of 3 ENBRIDGE GAS INC. EGD Rate Zone 2025 Carbon Charge Unit Rate Summary Effective April 1, 2025 Line No. Particulars Federal Carbon Charge (1) 2 Facility Carbon Charge (2) 3 Total (line 1 + line 2) Unit Rate (cents/m3) (a) 18.1100 0.0172 18.1272 Notes: (1) Exhibit D, Tab 2, Schedule 1, p. 1, line 13, column (h). (2) Exhibit D, Tab 2, Schedule 1, p. 2, line 3, column (a). Page148 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 2 Schedule 2 Page 1 of 3 ENBRIDGE GAS INC. EGD Rate Zone Calculation of Bill I_acts for Tvoical Customers EB-2024-0166 - Current Approved (1) EB-2024-0251 - Proposed Bill Impact Total Bill Including Federal Line Total Bill Unit Rate Total Bill Unit Rate Change Carbon Charge No. Particulars ($) (cents/m') ($) (centslm') ($) (%) (a) (b) (c) (d) (a)=(c-a) (f)=(e/a) Rate 1 - Small Customer Annual Volume 2,400m' 1 Monthly Customer Charge (2) 309 $ 25.72 309 $ 25.72 - 0.0% 2 Delivery Charges (3) 255 10.6324 255 10.6353 0.07 0.0% 3 Gas Supply Transportation 117 4.8806 117 4.8806 - 0.0% 4 Gas Supply Commodity 252 10.4826 252 10.4826 - 0.0% 5 Federal Carbon Charge 366 15.2500 435 18.1100 68.64 18.8% 6 Total Bill - Sales Service 1,299 54.1056 1,367 56.9685 68.71 5.3% 7 Bundled Direct Purchase Impact WTS 1,047 43.6230 1 116 46.4859 68.71 6.6 8 Bundled Direct Purchase Impact DTS 952 39.6824 1.021 42.5453 68.71 7.2% Rate 1 - Larae Customer Annual Volume 5,048m' 9 Monthly Customer Charge (2) 309 $ 25.72 309 $ 25.72 - 0.0% 10 Delivery Charges (3) 525 10.3938 525 10.3967 0.15 0.0% 11 Gas Supply Transportation 246 4.8806 246 4.8806 - 0.0% 12 Gas Supply Commodity 529 10.4826 529 10.4826 - 0.0% 13 Federal Carbon Charge 770 15.2500 914 18.1100 144.37 18.8% 14 Total Bill - Sales Service 2,379 47.1211 2,523 49.9840 144.52 6.1% 15 Bundled Direct Purchase Impact WTS 1.850 36.6385 1 994 39.5014 144.52 7.8 16 Bundled Direct Purchase Impact DTS 1.651 32.6979 1.795 35.5608 144.52 Rate 6 - Small Customer Annual Volume 5,048m' 17 Monthly Customer Charge (2) 956 $ 79.64 956 $ 79.64 - 0.0% 18 Delivery Charges (3) 580 11.4960 580 11.4989 0.15 0.0% 19 Gas Supply Transportation 246 4.8806 246 4.8806 - 0.0% 20 Gas Supply Commodity 530 10,5065 530 10.5065 - 0.0% 21 Federal Carbon Charge 770 15.2500 914 18.1100 144.37 18.8% 22 Total Bill - Sales Service 3.083 61.0649 3,227 63.9278 0.15 0.0% 23 Bundled Direct Purchase Impact WTS 2.552 50.5584 2 697 53.4213 144.52 5.7% 24 Bundled Direct Purchase Impact DTS 2.353 46.6178 2.498 49.4807 144.52 6.1% Rate 6 -Average Customer Annual Volume 22,606m' 25 Monthly Customer Charge (2) 956 $ 79.64 956 $ 79.64 - 0.0% 26 Delivery Charges (3) 2,102 9.3000 2,103 9.3029 1 0.0% 27 Gas Supply Transportation 1,103 4.8806 1,103 4.8806 - 0.0% 28 Gas Supply Commodity 2,375 10.5065 2,375 10.5065 - 0.0% 29 Federal Carbon Charge 3.447 15.2500 4,094 18.1100 647 18.8% 30 Total Bill - Sales Service 9,984 44.1646 10,631 47.0275 1 0.0% 31 Bundled Direct Purchase Impact WTS 7,609 33.6581 8.256 36.5210 647 8.5 32 Bundled Direct Purchase Impact DTS 6.718 29.7175 7.365 32.5804 647 9.6 Rate 6 - Large Customer Annual Volume 339,124m' 33 Monthly Customer Charge (2) 956 $ 79.64 956 $ 79.64 - 0.0% 34 Delivery Charges (3) 22,850 6.7380 22,860 6.7409 10 0.0% 35 Gas Supply Transportation 16,551 4.8806 16,551 4.8806 - 0.0% 36 Gas Supply Commodity 35,630 10.5065 35,630 10.5065 - 0.0% 37 Federal Carbon Charge 51,716 15.2500 61,415 18.1100 9,699 18.8% 38 Total Bill - Sales Service 127,704 37.6569 137,412 40.5198 10 0.0% 39 Bundled Direct Purchase Impact WTS 92.073 27.1504 101.782 30.0133 9.709 10.5% 40 Bundled Direct Purchase Impact DTS 78.710 23.2098 88.419 26.0727 9,709 12.3% Rate 100 - Small Customer Annual Volume 339,188m' 41 Monthly Customer Charge (2) 1,657 $ 138.07 1,657 $ 138.07 - 0.0% 42 Delivery Charges (3) 23,933 7.0560 23,943 7.0589 10 0.0% 43 Gas Supply Transportation 16,554 4.8806 16,554 4.8806 - 0.0% 44 Gas Supply Commodity 35,637 10.5065 35,637 10.5065 - 0.0% 45 Federal Carbon Charge 51,726 15.2500 61,427 18.1100 9,701 18.8% 46 Total Bill - Sales Service 129,507 38.1816 139,218 41.0445 10 0.0% 47 Bundled Direct Purchase Impact WTS 93.871 27.6751 103.581 30.5380 9.711 10.3% 48 Bundled Direct Purchase Impact DTS 80.505 23.7345 90.215 26.5974 9,711 12.1% Rate 100 - Large Customer Annual Volume 1,500,000m3 49 Monthly Customer Charge (2) 1,657 $ 138.07 1,657 $ 138.07 - 0.0% 50 Delivery Charges (3) 187,678 12.5119 187,721 12.5148 44 0.0% 51 Gas Supply Transportation 73,209 4.8806 73,209 4.8806 - 0.0% 52 Gas Supply Commodity 157,598 10.5065 157,598 10.5065 - 0.0% 53 Federal Carbon Charge 228,750 15.2500 271,650 18.1100 42,900 18.8% 54 Total Bill - Sales Service 648,891 43.2594 691,835 46.1223 44 0.0% 55 Bundled Direct Purchase Impact WTS 491.294 32.7529 534.237 35.6158 42,944 8.7% 56 Bundled Direct Purchase Impact DTS 432.185 28.8123 475.128 31.6752 42,944 9.9 Rate 100 -Average Customer Annual Volume 598,567m' 57 Monthly Customer Charge (2) 1,657 $ 138.07 1,657 $ 138.07 - 0.0% 58 Delivery Charges (3) 89,677 14.9819 89,694 14.9848 17 0.0% 59 Gas Supply Transportation 29,214 4.8806 29,214 4.8806 - 0.0% 60 Gas Supply Commodity 62,888 10.5065 62,888 10.5065 - 0.0% 61 Federal Carbon Charge 91.281 15.2500 108,400 1841100 17,119 18.8% 62 Total Bill - Sales Service 274,717 45.8958 291,854 48.7587 17 0.0% 63 Bundled Direct Purchase Impact WTS 211.829 35.3893 228.965 38.2522 17.136 8.1% 64 Bundled Direct Purchase Impact DTS 188,242 31.4487 205.378 34.3116 17,136 9.1% Page149 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 2 Schedule 2 Page 2 of 3 ENBRIDGE GAS INC. EGD Rate Zone Calculation of Bill I_acts for Tvoical Customers EB-2024-0166 - Current Approved (1) EB-2024-0251 - Proposed Bill Impact Total Bill Including Federal Line Total Bill Unit Rate Total Bill Unit Rate Change Carbon Charge No. Particulars ($) (cents/m') ($) (centslm') ($) (%) (a) (b) (c) (d) (a)=(c-a) (a a) Rate 110 - Small Customer Annual Volume 598,568m' 65 Monthly Customer Charge (2) 7,930 $ 660.87 7,930 $ 660.87 - 0.0% 66 Delivery Charges (3) 17,921 2.9939 17,938 2.9968 17 0.1% 67 Gas Supply Transportation 29,214 4.8806 29,214 4.8806 - 0.0% 68 Gas Supply Commodity 62,511 10."35 62,511 10.4435 - 0.0% 69 Federal Carbon Charge 91,282 15.2500 108,401 1841100 17,119 18.8% 70 Total Bill - Sales Service 208,858 3448929 225,994 37.7558 17 0.0% 71 Bundled Direct Purchase Impact WTS 146,346 24.4494 163.483 27.3123 17,136 11.7% 72 Bundled Direct Purchase Impact DTS 122,759 20.5088 139 896 23.3717 17,136 14.0% Rate 110 -Average Customer Annual Volume 9,976,120m3 73 Monthly Customer Charge (2) 7,930 $ 660.87 7,930 $ 660.87 - 0.0% 74 Delivery Charges (3) 240,928 2.4151 241,218 2.4180 289 0.1% 75 Gas Supply Transportation 486,895 4.8806 486,895 4.8806 - 0.0% 76 Gas Supply Commodity 1,041,856 10.4435 1,041,856 10.4435 - 0.0% 77 Federal Carbon Charge 1,521,358 15.2500 1,806,675 1841100 285,317 18.8% 78 Total Bill - Sales Service 3,298,968 33.0686 3,584,574 35.9315 289 0.0% 79 Bundled Direct Purchase Impact WTS 2,257,112 22.6251 2,542.718 25.4880 285,606 12.7% 80 Bundled Direct Purchase Impact DTS 1,863,993 18.6845 2,149.599 21.5474 285,606 15.3% Rate 110 - Large Customer Annual Volume 9,976,121m3 81 Monthly Customer Charge (2) 7,930 $ 660.87 7,930 $ 660.87 - 0.0% 82 Delivery Charges (3) 294,369 2.9507 294,658 2.9536 289 0.1% 83 Gas Supply Transportation 486,895 4.8806 486,895 4.8806 - 0.0% 84 Gas Supply Commodity 1,041,856 10.4435 1,041,856 10.4435 - 0.0% 85 Federal Carbon Charge 1,521,358 15.2500 1,806,676 1841100 285,317 18.8% 86 Total Bill - Sales Service 3,352,409 33.6043 3,638,015 36.4672 289 0.0% 87 Bundled Direct Purchase Impact WTS 2,310,552 23.1608 2,596.159 26.0237 285,606 12.4 % 88 Bundled Direct Purchase Impact DTS 1,917,433 19.2202 2,203.040 22.0831 285,606 14.9% Rate 115 - Small Customer Annual Volume 4,471,609m3 92 Monthly Customer Charge (2) 8,406 $ 700.47 8,406 $ 700.47 - 0.0% 93 Delivery Charges (3) 78,196 1.7487 78,326 1.7516 130 0.2% 94 Gas Supply Transportation 218,241 4.8806 218,241 4.8806 - 0.0% 95 Gas Supply Commodity 466,992 10.4435 466,992 10.4435 - 0.0% 96 Federal Carbon Charge 681,920 15.2500 809,808 18.1100 127,888 18.8% 97 Total Bill - Sales Service 1,453,756 32.5108 1,581,774 35.3737 130 0.0% 98 Bundled Direct Purchase Impact WTS 986,764 22.0673 1,114.781 24.9302 128,018 13.0% 99 Bundled Direct Purchase Impact DTS 810,555 18.1267 938 573 20.9896 128,018 15.8% Rate 115 - Large Customer Annual Volume 69,832,850m3 100 Monthly Customer Charge (2) 8,406 $ 700.47 8,406 $ 700.47 - 0.0% 101 Delivery Charges (3) 1,160,309 1,6616 1,162,335 1.6645 2,025 0.2% 102 Gas Supply Transportation 3408262 4.8806 3,408,262 4.8806 - 0.0% 103 Gas Supply Commodity 7:292:994 10.4435 7,292,994 10.4435 - 0.0% 104 Federal Carbon Charge 10,649,510 1592500 12,646,729 1841100 1,997,220 18.8% 105 Total Bill - Sales Service 22,519,480 322477 24,518,725 35.1106 2.025 0.0% 106 Bundled Direct Purchase Impact WTS 15,226,487 21.8042 17,225.731 24.6671 1,999,245 13.1% 107 Bundled Direct Purchase Impact DTS 12,474,653 17.8636 14,473.898 20.7265 1,999,245 16.0% Rate 125 - Average Customer Annual Volume 206,000,00Om3 108 Monthly Customer Charge (2) 6,753 $ 562.72 6,753 $ 562.72 - 0.0% 109 Delivery Charges (3) 3,236,022 1.5709 3,241,996 1.5738 5.974 0.2% 110 Gas Supply Commodity 21,513,610 10.4435 21,513,610 10.4435 - 0.0% 111 Federal Carbon Charge 31,415,000 15.2500 37,306,600 18.1100 5,891,600 18.8% 112 Total Bill - Sales Service 56, 164,632 2742644 62,062,206 3011273 5,974 0.0% 113 Bundled Direct Purchase 34,651,022 16.8209 40,548.596 19.6838 5,897,574 17.0% Rate 135 -Average Customer Annual Volume 598,567m' 114 Monthly Customer Charge (2) 1,563 $ 130.29 1,563 $ 130.29 - 0.0% 115 Delivery Charges (3) 21,096 3.5245 21,114 3.5274 17 0.1% 116 Gas Supply Transportation (4) 24,163 4.0368 24,163 4.0368 - 0.0% 117 Gas Supply Commodity 62,535 10.4475 62,535 10.4475 - 0.0% 118 Federal Carbon Charge 91,281 15.2500 108,400 1841100 17,119 18.8% 119 Total Bill - Sales Service 200,639 33.5199 217,776 36.3828 17 0.0% 120 Bundled Direct Purchase Impact WTS 138,104 23.0724 155.240 25.9353 17,136 12.4% 121 Bundled Direct Purchase Impact DTS 114,517 19.1318 131 653 21.9947 17,136 15.0% Rate 145 - Small Customer Annual Volume 339,188m' 122 Monthly Customer Charge (2) 1,675 $ 139.56 1,675 $ 139.56 - 0.0% 123 Delivery Charges (3) 13,601 4.0100 13,611 4.0129 10 0.1% 124 Gas Supply Transportation (4) 14,696 4.3327 14,696 4.3327 - 0.0% 125 Gas Supply Commodity 35,437 10.4475 35,437 10.4475 - 0.0% 126 Federal Carbon Charge 51,726 15.2500 61,427 1841100 9,701 18.8% 127 Total Bill - Sales Service 117,135 34.5339 126,846 37.3968 10 0.0% 128 Bundled Direct Purchase Impact WTS 81,698 24.0864 91 409 26.9493 9,711 11.9% 129 Bundled Direct Purchase Impact DTS 68,332 20.1458 78 043 23.0087 9.711 14.2 % Page150 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 2 Schedule 2 Page 3 of 3 ENBRIDGE GAS INC. EGD Rate Zone Calculation of Bill I_acts for Tvoical Customers EB-2024-0166 - Current Approved (1) EB-2024-0251 - Proposed Bill Impact Total Bill Including Federal Line Total Bill Unit Rate Total Bill Unit Rate Change Carbon Charge No. Particulars ($) (cents/m'1 ($) (centslm') ($) (%) (a) (b) (c) (d) (a)=(c-a) (f)=(e/a) Rate 145 - Large Customer Annual Volume 598,567m' 130 Monthly Customer Charge (2) 1,675 $ 139.56 1,675 $ 139.56 - 0.0% 131 Delivery Charges (3) 23,118 3.8623 23,136 3.8652 17 0.1% 132 Gas Supply Transportation (4) 25,934 4.3327 25,934 4.3327 - 0.0% 133 Gas Supply Commodity 62,535 10.4475 62,535 10.4475 - 0.0% 134 Federal Carbon Charge 91,281 15.2500 108,400 1841100 17,119 18.8% 135 Total Bill - Sales Service 204,544 34A722 221,680 3710351 17 0.0% 136 Bundled Direct Purchase Impact WTS 142,008 23.7247 159.145 26.5876 17,136 12.1% 137 Bundled Direct Purchase Impact DTS 118,421 19.7841 135 558 22.6470 17,136 14.5% Rate 170 - Small Customer Annual Volume 9,976,120m3 138 Monthly Customer Charge (2) 3,777 $ 314.79 3,777 $ 314.79 - 0.0% 139 Delivery Charges (3) 85,432 0.8564 85,722 0.8593 289 0.3% 140 Gas Supply Transportation (4) 366,634 3.6751 366,634 3.6751 - 0.0% 141 Gas Supply Commodity 1,041,856 10.4435 1,041,856 10.4435 - 0.0% 142 Federal Carbon Charge 1521,358 15.2500 1,806,675 18.1100 285,317 18.8% 143 Total Bill - Sales Service 3:019,059 30.2629 3,304,665 33.1258 289 0.0% 144 Bundled Direct Purchase Impact WTS 1,977,203 19.8194 2,262,809 22.6823 285,606 14.4% 145 Bundled Direct Purchase Impact DTS 1,584,084 15.8788 1,869,690 18.7417 285,606 18.0% Rate 170 -Average Customer Annual Volume 9,976,121m' 146 Monthly Customer Charge (2) 3,777 $ 314.79 3,777 $ 314.79 - 0.0% 147 Delivery Charges (3) 95,102 0.9533 95,391 0.9562 289 0.3% 148 Gas Supply Transportation (4) 366,634 3.6751 366,634 3.6751 - 0.0% 149 Gas Supply Commodity 1,041,856 10.4435 1,041,856 10.4435 - 0.0% 150 Federal Carbon Charge 1,521,358 15.2500 1,806,676 1801100 285,317 18.8% 151 Total Bill - Sales Service 3,028,729 30.3598 3,314,335 3302227 289 0.0% 152 Bundled Direct Purchase Impact WTS 1,986,872 19.9163 2,272,479 22.7792 285,606 14.4% 153 Bundled Direct Purchase Impact DTS 1,593,753 15.9757 1,879.360 18.8386 285,606 17.9% Rate 170 - Large Customer Annual Volume 69,832,850m' 154 Monthly Customer Charge (2) 3,777 $ 314.79 3,777 $ 314.79 - 0.0% 155 Delivery Charges (3) 598,136 0.8565 600,161 0.8594 2,025 0.3% 156 Gas Supply Transportation (4) 2,566,441 3.6751 2,566,441 3.6751 - 0.0% 157 Gas Supply Commodity 7,292,994 10.4435 7,292,994 10.4435 - 0.0% 158 Federal Carbon Charge 10,649,510 15.2500 12,646,729 18.1100 1,997,220 18.8% 159 Total Bill - Sales Service 21,110,858 30.2306 23,110,103 33.0935 2,025 0.0% 160 Bundled Direct Purchase Impact WTS 13,817,865 19.7871 15,817,109 22.6500 1,999,245 14.5% 161 Bundled Direct Purchase Impact DTS 11,066,031 15.8465 13,065.276 18.7094 1,999,245 18.1% Rate 200 -Average Customer (5) Annual Volume 140,305,600m' 162 Monthly Customer Charge (2) 24,000 $ 2,000.00 24,000 $ 2,000.00 - 0.0% 163 Delivery Charges (3) 6,325,521 4.5084 6,329,590 4.5113 4,069 0.1% 164 Gas Supply Transportation (4) 6,587,243 4.6949 6,587,243 4.6949 - 0.0% 165 Gas Supply Commodity 14,652,675 10.4434 14,652,675 10.4434 - 0.0 % 166 Federal Carbon Charge - 0.0000 - 0.0000 - 0.0% 167 Total Bill - Sales Service 27,589,439 19.6638 27,593,507 19.6667 4,069 0.0% 168 Bundled Direct Purchase Impact WTS 12,936.763 9.2204 12,940.832 9.2233 4,069 0.0% 169 Bundled Direct Purchase Impact DTS 7,407,881 5.2798 7,411,950 5.2827 4,069 0.1% Notes: (1) EB-2024-0166, Exhibit F, Tab 1, Schedule 1, Appendix D. (2) Unit rate is equal to monthly dollar amount. (3) Include: load balancing rate. (4) Includes curtailment credits. (5) Rate 200 customers are not charged the Federal Carbon Charge. Page 151 Line No. Particulars ($000's) 1 Balance 2 Interest 3 Total (1) Notes: (1) Exhibit D, Tab 2, Schedule 3, page 2. Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 2 Schedule 3 Page 1 of 2 ENBRIDGE GAS INC. EGD Rate Zone Summary of 2023 Federal Carbon Deferral and Variance Accounts Greenhouse Gas Customer Carbon Charge Facility Carbon Charge Emissions Administration - Variance Account - Variance Account Deferral Account 179-502 179-503 179-501 Total (a) (b) (c) (d) = (a+b+c) (110) 4,152 4,042 (48) 390 342 - (157) 4,541 4,384 Page 152 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 2 Schedule 3 Page 2 of 2 ENBRIDGE GAS INC. EGD Rate Zone Allocation of 2023 Federal Carbon Deferral and Variance Accounts Allocators Account Balances Jan - Dec 2023 Greenhouse Gas Total 2023 Customer Carbon Charge Facility Carbon Charge Emissions Administration Line Volumes Number of - Variance Account - Variance Account Deferral Account No. Particulars ($000's) 103m3 Customers 19-657 19-676 (1) 19-678 (2) Total (a) (b) (c) (d) (e) (f) _ (c+d+e) In -franchise 1 Rate 1 4,677,347 2,152,304 - (52) 4,206 4,153 2 Rate 6 4,450,159 171,210 - (50) 335 285 4 Rate 100 50,015 19 - (1) 0 (1) 5 Rate 110 1,254,228 466 - (14) 1 (13) 6 Rate 115 355,028 18 - (4) 0 (4) 7 Rate 125 1,106,860 4 - (12) 0 (12) 8 Rate 135 66,869 43 - (1) 0 (1) 9 Rate 145 49,883 17 - (1) 0 (1) 10 Rate 170 243,960 20 - (3) 0 (3) 11 Rate 200 188,441 1 - (2) 0 (2) 12 Rate 300 - 1 - - 0 0 13 Rate 315 - - - - - - 14 Total In -franchise 12,442,790 2,324,103 - (139) 4,541 4,402 Ex -franchise 15 Rate 332 1,633,881 1 - (18) 0 (18) 16 Total Ex -franchise 1,633,881 1 - (18) 0 (18) 17 Total In -franchise & Ex -franchise 14,076,671 2,324,104 - (157) 4,541 4,384 Notes: (1) Allocated in proportion to column (a). (2) Allocated in proportion to column (b). Page 153 Line No. Particulars ENBRIDGE GAS INC. EGD Rate Zone Unit Rates for One -Time Adjustment 2023 Federal Carbon Deferral and Variance Account Disposition Deferral Balance for Disposition ($000's) (1) (a) Volume (103m) (b) Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 2 Schedule 4 Page 1 of 1 Unit Rate (cents/m3) (c) _ (a / b)*100 In -franchise 1 Rate 1 4,153 4,677,347 0.0888 2 Rate 6 285 4,450,159 0.0064 3 Rate 100 (1) 50,015 (0.0010) 4 Rate 110 (13) 1,254,228 (0.0010) 5 Rate 115 (4) 355,028 (0.0011) 6 Rate 125 (12) 1,106,860 (0.0011) 7 Rate 135 (1) 66,869 (0.0010) 8 Rate 145 (1) 49,883 (0.0011) 9 Rate 170 (3) 243,960 (0.0011) 10 Rate 200 (2) 188,441 (0.0011) 11 Rate 300 (2) 0 15,600 0.0125 12 Rate 315 - - - 13 Total In -franchise 4,402 Ex -franchise 14 Rate 332 (18) 1,633,881 (0.0011) 15 Total Ex -franchise (18) Notes: (1) Exhibit D, Tab 2, Schedule 3, page 2, column (f). (2) Rate 300 unit rate based on contracted demand (m3/d). Page 154 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 2 Schedule 5 Page 1 of 1 ENBRIDGE GAS INC. EGD Rate Zone Typical Bill Impacts 2023 Federal Carbon Deferral and Variance Account Disposition Annual Bill Impact for Non-EPS Annual Bill Impact for EPS July 2024 Bill July 2024 Bill Unit Rate July 2024 Including Total Unit Rate July 2024 Including Total Line Annual Volume (1) Total Adjustment Bill (2) Adjustment Bill Impact (1) Total Adjustment Bill (2) Adjustment Bill Impact No. (m) (cents/m3) ($) ($) ($) (%) (cents/m3) ($) ($) ($) (%) (a) (b) (c) _ (a x b) / 100 (d) (e) = (d + c) (f) _ (c / d) (g) (h) _ (a x g) / 100 (i) (j) _ (I + h) (k) _ (h / i) 1 Rate 1 - Small 2,400 0.0888 2.13 1,299 1,301 0.2% 0.0888 2.13 933 935 0.2% 2 Rate 6 - Average 22,606 0.0064 1.45 9,984 9,985 0.0% 0.0064 1.45 6,536 6,538 0.0% 3 Rate 6 - Large 339,124 0.0064 21.70 127,704 127,725 0.0% 0.0064 21.70 75,987 76,009 0.0% 4 Rate 100 - Small 339,188 (0.0010) (3.54) 129,507 129,504 (0.0%) (0.0010) (3.54) 77,781 77,778 (0.0%) 5 Rate 100 - Large 1,500,000 (0.0010) (15.67) 648,891 648,876 (0.0%) (0.0010) (15.67) 420,141 420,126 (0.0%) 6 Rate 110 - Small 598,568 (0.0010) (6.26) 208,858 208,852 (0.0%) (0.0010) (6.26) 117,576 117,570 (0.0%) 7 Rate 110 - Large 9,976,121 (0.0010) (104.37) 3,352,409 3,352,304 (0.0%) (0.0010) (104.37) 1,831,050 1,830,946 (0.0%) 8 Rate 115 - Small 4,471,609 (0.0011) (49.58) 1,453,756 1,453,707 (0.0%) (0.0011) (49.58) 771,836 771,786 (0.0%) 9 Rate 115 - Large 69,832,850 (0.0011) (774.35) 22,519,480 22,518,706 (0.0%) (0.0011) (774.35) 11,869,971 11,869,196 (0.0%) 10 Rate 125 - Average 206,000,000 (0.0010) (2,045.82) 56,164,632 56,162,586 (0.0%) (0.0010) (2,045.82) 24,749,632 24,747,586 (0.0%) 11 Rate 135 - Average 598,567 (0.0010) (5.94) 200,639 200,633 (0.0%) (0.0010) (5.94) 109,358 109,352 (0.0%) 12 Rate 145-Small 339,188 (0.0011) (3.57) 117,135 117,131 (0.0%) (0.0011) (3.57) 65,409 65,405 (0.0%) 13 Rate 145 - Large 598,567 (0.0011) (6.30) 204,544 204,537 (0.0%) (0.0011) (6.30) 113,262 113,256 ° 14 Rate 170-Small 9,976,121 (0.0011) (110.01) 3,019,059 3,018,949 (0.0%) (0.0011) (110.01) 1,497,700 1,497,590 (0.0%) 15 Rate 170 - Large 69,832,850 (0.0011) (770.08) 21,110,858 21,110,088 (0.0%) (0.0011) (770.08) 10,461,349 10,460,579 (0.0%) 16 Rate 200-Average 140,305,600 (0.0011) (0.0011) (1,547.23) 27,589,439 27,587,891 (0.0%) Notes: (1) Unit rates calculated at Exhibit D, Tab 2, Schedule 4. (2) Typical annual bill for a sales service customer at approved July 2024 QRAM rates (EB-2024-0166). Page155 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 3 Schedule 1 Page 1 of 3 ENBRIDGE GAS INC. Union Rate Zones 2025 Customer -Related Volumes and Derivation of Federal Carbon Charge Unit Rate Effective April 1. 2025 Forecast Less: Customer -Related EPS Participant & Federal Federal Federal Carbon Line Volumes Transportation Forecast Other Exempt Volumes Net Volumes Carbon Charge Carbon Cost Charge Unit Rate No. Particulars (103m3) (1) Volumes (103m3) Volumes (103m3) (2) (103m3) (3) (103m) ($/m3) (4) ($) (cents/m3) (a) (b) (c) _ (a - b) (d) (a) _ (c - d) (f) (g) _ (e * f * 1000) (h) _ (g/(e*1000))*100 Union North In -franchise 1 Rate 01 1,013,413 1,013,413 269 1,013,143 0.1811 183,480,256 2 Rate 10 318,344 318,344 9,212 309,132 0.1811 55,983,741 3 Rate 20 991,428 991,428 893,817 97,610 0.1811 17,677,238 4 Rate 25 190,423 190,423 178,399 12,024 0.1811 2,177,592 5 Rate 100 927,064 927,064 927,064 0.1811 6 Total Union North In -franchise 3,440,672 3,440,672 2,008,762 1,431,910 259,318,827 Union South In -franchise 7 Rate M1 3,220,995 3,220,995 2,156 3,218,839 0.1811 582,931,747 8 Rate M2 1,232,396 1,232,396 94,918 1,137,477 0.1811 205,997,114 9 Rate M4 585,465 585,465 247,538 337,928 0.1811 61,198,745 10 Rate M5 58,417 58,417 12,743 45,674 0.1811 8,271,625 11 Rate M7 810,074 810,074 636,246 173,828 0.1811 31,480,251 12 Rate M9 98,223 98,223 98,223 - 0.1811 - 13 Rate T1 407,282 407,282 329,596 77,686 0.1811 14,068,941 14 RateT2 5,118,431 5,118,431 5,049,146 69,285 0.1811 12,547,459 15 Rate T3 255,661 255,661 255,661 0.1811 16 Total Union South In -franchise 11,786,945 11,786,945 6,726,228 5,060,717 916,495,882 17 Total In -franchise 15,227,617 15,227,617 8,734,990 6,492,627 1,175,814,709 Ex -franchise 18 Rate M12 - Firm Transportation 11,038,523 11,038,523 - - - 0.1811 19 Rate M13 176,682 176,682 0.1811 20 Rate M16 278,551 278,551 0.1811 21 Rate M17 28,907 28,907 0.1811 22 Rate C1 - Firm Transportation 9,878,697 9,878,697 0.1811 23 Total Ex -franchise 21,401,360 21,401,360 24 Total In -franchise & Ex -franchise 36,628,977 21,401,360 15,227,617 8,734,990 6,492,627 1,175,814,709 18.1100 Notes: (1) Exhibit B, Tab 3, Schedule 2, Col. 1 + ex -franchise forecast volumes. (2) Exhibit B, Tab 3, Schedule 2, Col. 1. (3) Exhibit B, Tab 3, Schedule 2, Col. 2. (4) Exhibit B, Tab 3, Schedule 6, Line 2. Page156 ENBRIDGE GAS INC. Union Rate Zones Derivation of 2025 Facility Carbon Charge Effective April 1, 2025 Line No. Particulars 1 Total Facility Carbon Cost ($000's) (1) 2 2024 Forecast Volumes (103m) (2) 3 Facility Carbon Charge (cents/m') (line 1 / line 2 ` 100) 4 Facility Carbon Charge ($/GJ) (line 3 / Heat Value ` 10) (3) Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 3 Schedule 1 Page 2 of 3 Enbridge Gas Combined (a) 8,942 51,856,157 0.0172 0.004 Notes: (1) Exhibit B, Tab 2, Schedule 6, Line 12/1000 + Exhibit B, Tab 3, Schedule 6, Line 12/1000. (2) Exhibit D, Tab 2, Schedule 1, Page 1, Column 1, Line 1 + Exhibit D, Tab 3, Schedule 1, Column (a), Line 24. (3) Per Exhibit D, Tab 1, Schedule 1, the common Facility Carbon Charge is applicable to all customers. Conversion to GJs based on heat value adjustment of 39.09 GJ/103m3. Page 157 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 3 Schedule 1 Page 3 of 3 ENBRIDGE GAS INC. Union Rate Zones 2025 Carbon Charge Unit Rate Summary Effective April 1, 2025 Line No. Particulars Unit Rate (cents/m3) (a) Federal Carbon Charge (1) 18.1100 2 Facility Carbon Charge (2) 0.0172 3 Total (line 1 + line 2) 18.1272 Notes: (1) Exhibit D, Tab 3, Schedule 1, p. 1, line 24, column (h). (2) Exhibit D, Tab 3, Schedule 1, p. 2, line 3, column (a). Page 158 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 3 Schedule 2 Page 1 of 3 ENBRIDGE GAS INC. Union North Rate Zone Calculation of Bill Impacts for Typical Customers EB-2024-0166 - Current Approved (1) EB-2024-0251 - Proposed Bill Impact Total Bill Including Federal Line Total Bill Unit Rate Total Bill Unit Rate Change Carbon Charge No. Particulars ($) (cents/m3) ($) (cents/m3) ($) (%) (a) (b) (c) (d) (e) _ (c - a) (f) _ (e / a) Rate 01 - Small Customer 1 Monthly Customer Charge (2) 322 $ 26.85 322 $ 26.85 - 0.0% 2 Delivery Charges 233 10.6128 234 10.6157 0.06 0.0% 3 Gas Supply Transportation 173 7.8681 173 7.8681 - 0.0% 4 Gas Supply Commodity (3) 314 14.2865 314 14.2865 - 0.0% 5 Federal Carbon Charge 336 15.2500 398 18.1100 62.92 18.8% 6 Total Bill - Sales Service 1,379 62.6628 1,442 65.5257 62.98 4.6% 7 Bundled Direct Purchase Impact 1,064 1,127 51.2392 62.98 48.3763 5.9% Rate 01 - Large Customer 8 Monthly Customer Charge (2) 322 $ 26.85 322 $ 26.85 - 0.0% 9 Delivery Charges 3,837 9.5936 3,839 9.5965 1 0.0% 10 Gas Supply Transportation 3,147 7.8681 3,147 7.8681 - 0.0% 11 Gas Supply Commodity (3) 5,715 14.2865 5,715 14.2865 - 0.0% 12 Federal Carbon Charge 6,100 15.2500 7,244 18.1100 1,144 18.8% 13 Total Bill - Sales Service 19,121 47.8037 20,267 50.6666 1,145 6.0% 14 Bundled Direct Purchase Impact 13,407 14,552 36.3801 1,145 33.5172 8.5% Rate 10 - Small Customer 15 Monthly Customer Charge (2) 956 $ 79.65 956 $ 79.65 - 0.0% 16 Delivery Charges 4,921 8.2014 4,923 8.2043 2 0.0% 17 Gas Supply Transportation 3,726 6.2100 3,726 6.2100 - 0.0% 18 Gas Supply Commodity (3) 8,572 14.2865 8,572 14.2865 - 0.0% 19 Federal Carbon Charge 9,150 15.2500 10,866 18.1100 1,716 18.8% 20 Total Bill - Sales Service 27,325 45.5409 29,042 48.4038 1,718 6.3% 21 Bundled Direct Purchase Impact 18,753 20,470 34.1173 1,718 31.2544 9.2% Rate 10 - Large Customer 22 Monthly Customer Charge (2) 956 $ 79.65 956 $ 79.65 - 0.0% 23 Delivery Charges 18,306 7.3222 18,313 7.3251 7 0.0% 24 Gas Supply Transportation 15,525 6.2100 15,525 6.2100 - 0.0% 25 Gas Supply Commodity (3) 35,716 14.2865 35,716 14.2865 - 0.0% 26 Federal Carbon Charge 38,125 15.2500 45,275 18.1100 7,150 18.8% 27 Total Bill - Sales Service 108,628 43.4511 115,785 46.3140 7,157 6.6% 28 Bundled Direct Purchase Impact 72,911 29.1646 80,069 32.0275 7,157 9.8% Rate 10 - Average Customer 29 Monthly Customer Charge (2) 956 $ 79.65 956 $ 79.65 - 0.0% 30 Delivery Charges 7,386 7.9423 7,389 7.9452 3 0.0% 31 Gas Supply Transportation 5,775 6.2100 5,775 6.2100 - 0.0% 32 Gas Supply Commodity (3) 13,286 14.2865 13,286 14.2865 - 0.0% 33 Federal Carbon Charge 14,183 15.2500 16,842 18.1100 2,660 18.8% 34 Total Bill - Sales Service 41,586 44.7166 44,249 47.5795 2,662 6.4% 35 Bundled Direct Purchase Impact 28,300 30.4301 30,962 33.2930 2,662 9.4% Rate 20 - Small Customer 36 Monthly Customer Charge (2) 13,454 $ 1,121.17 13,454 $ 1,121.17 - 0.0% 37 Delivery Charges 81,219 2.7073 81,306 2.7102 87 0.1% 38 Gas Supply Transportation 67,878 2.2626 67,878 2.2626 - 0.0% 39 Gas Supply Commodity (3) 415,635 13.8545 415,635 13.8545 - 0.0% 40 Federal Carbon Charge 457,500 15.2500 543,300 18.1100 85,800 18.8% 41 Total Bill - Sales Service 1,035,685 34.5228 1,121,572 37.3857 85,887 8.3% 42 Bundled Direct Purchase Impact 620,050 705,937 23.5312 85,887 20.6683 13.9% Rate 20 - Large Customer 43 Monthly Customer Charge (2) 13,454 $ 1,121.17 13,454 $ 1,121.17 - 0.0% 44 Delivery Charges 354,140 2.3609 354,575 2.3638 435 0.1% 45 Gas Supply Transportation 290,904 1.9394 290,904 1.9394 - 0.0% 46 Gas Supply Commodity (3) 2,078,175 13.8545 2,078,175 13.8545 - 0.0% 47 Federal Carbon Charge 2,287,500 15.2500 2,716,500 18.1100 429,000 18.8% 48 Total Bill - Sales Service 5,024,174 33.4945 5,453,609 36.3574 429,435 8.5% 49 Bundled Direct Purchase Impact 2,945,999 19.6400 3,375,434 22.5029 429,435 14.6% Rate 25 - Average Customer 50 Monthly Customer Charge (2) 4,542 $ 378.50 4,542 $ 378.50 - 0.0% 51 Delivery Charges 76,166 3.3480 76,232 3.3509 66 0.1% 52 Gas Supply Transportation 26,344 1.1580 26,344 1.1580 - 0.0% 53 Gas Supply Commodity (3) 315,190 13.8545 315,190 13.8545 - 0.0% 54 Federal Carbon Charge 346,938 15.2500 412,003 18.1100 65,065 18.8% 55 Total Bill - Sales Service 769,180 33.8101 834,311 36.6730 65,131 8.5% 56 Bundled Direct Purchase Impact 453,990 519,121 22.8185 65,131 19.9556 14.3% Rate 100 - Small Customer 57 Monthly Customer Charge (2) 19,987 $ 1,665.57 19,987 $ 1,665.57 - 0.0% 58 Delivery Charges 319,490 1.1833 320,273 1.1862 783 0.2% 59 Gas Supply Transportation 1,115,631 4.1320 1,115,631 4.1320 - 0.0% 60 Gas Supply Commodity (3) 3,740,715 13.8545 3,740,715 13.8545 - 0.0% 61 Federal Carbon Charge 4,117,500 15.2500 4,889,700 18.1100 772,200 18.8% 62 Total Bill - Sales Service 9,313,324 34.4938 10,086,307 37.3567 772,983 8.3% 63 Unbundled Direct Purchase Impact 4,456,977 5,229,960 19.3702 772,983 16.5073 18.7% Rate 100 - Large Customer 64 Monthly Customer Charge (2) 19,987 $ 1,665.57 19,987 $ 1,665.57 - 0.0% 65 Delivery Charges 2,747,147 1.1446 2,754,107 1.1475 6,960 0.3% 66 Gas Supply Transportation 9,482,867 3.9512 9,482,867 3.9512 - 0.0% 67 Gas Supply Commodity (3) 33,250,800 13.8545 33,250,800 13.8545 - 0.0% 68 Federal Carbon Charge 36,600,000 15.2500 43,464,000 18.1100 6,864,000 18.8% 69 Total Bill - Sales Service 82,100,801 34.2087 88,971,761 37.0716 6,870,960 8.4% 70 Unbundled Direct Purchase Impact 39,367,134 46,238,094 19.2659 6,870,960 16.4030 17.5% Notes: (1) EB-2024-0166, Exhibit F, Tab 1, Schedule 1, Appendix D. (2) Unit rate is equal to monthly dollar amount. (3) Gas Supply charges based on Union North East Zone. Page159 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 3 Schedule 2 Page 2 of 3 ENBRIDGE GAS INC. Union South Rate Zone Calculation of Bill Impacts for Typical Customers EB-2024-0166 - Current Approved (1) EB-2024-0251 - Proposed Bill Impact Total Bill Including Federal Line Total Bill Unit Rate Total Bill Unit Rate Change Carbon Charge No. Particulars ($) (cents/m3) ($) (cents/m3) ($) (%) (a) (b) (c) (d) (e) _ (c - a) (f) _ (e / a) Rate M1 - Small Customer 1 Monthly Customer Charge (2) 322 $ 26.85 322 $ 26.85 - 0.0% 2 Delivery Charges 143 6.4998 143 6.5027 0.06 0.0% 3 Gas Supply Charges 308 13.9965 308 13.9965 - 0.0% 4 Federal Carbon Charge 336 15.2500 398 18.1100 62.92 18.8% 5 Total Bill - Sales Service 1,109 50.3917 1,172 53.2546 62.98 5.7% 6 Bundled Direct Purchase Impact 801 36.3952 864 39.2581 62.98 7.9% Rate M1 - Large Customer 7 Monthly Customer Charge (2) 322 $ 26.85 322 $ 26.85 - 0.0% 8 Delivery Charges 2,348 5.8704 2,349 5.8733 1 0.0% 9 Gas Supply Charges 5,599 13.9965 5,599 13.9965 - 0.0% 10 Federal Carbon Charge 6,100 15.2500 7,244 18.1100 1,144 18.8% 11 Total Bill - Sales Service 14,369 35.9224 15,514 38.7853 1,145 8.0% 12 Bundled Direct Purchase Impact 8,770 9,916 24.7888 1,145 21.9259 13.1% Rate M2 - Small Customer 13 Monthly Customer Charge (2) 956 $ 79.65 956 $ 79.65 - 0.0% 14 Delivery Charges 3,989 6.6486 3,991 6.6515 2 0.0% 15 Gas Supply Charges 8,398 13.9965 8,398 13.9965 - 0.0% 16 Federal Carbon Charge 9,150 15.2500 10,866 18.1100 1,716 18.8% 17 Total Bill - Sales Service 22,493 37.4881 24,211 40.3510 2 0.0% 18 Bundled Direct Purchase Impact 14,095 15,813 26.3545 1,718 23.4916 12.2% Rate M2 - Large Customer 19 Monthly Customer Charge (2) 956 $ 79.65 956 $ 79.65 - 0.0% 20 Delivery Charges 15,818 6.3272 15,825 6.3301 7 0.0% 21 Gas Supply Charges 34,991 13.9965 34,991 13.9965 - 0.0% 22 Federal Carbon Charge 38,125 15.2500 45,275 18.1100 7,150 18.8% 23 Total Bill - Sales Service 89,890 35.9560 97,047 38.8189 7,157 8.0% 24 Bundled Direct Purchase Impact 54,899 21.9595 62,056 24.8224 7,157 13.0% Rate M2 - Average Customer 25 Monthly Customer Charge (2) 956 $ 79.65 956 $ 79.65 - 0.0% 26 Delivery Charges 4,829 6.6153 4,831 6.6182 2 0.0% 27 Gas Supply Charges 10,217 13.9965 10,217 13.9965 - 0.0% 28 Federal Carbon Charge 11,133 15.2500 13,220 18.1100 2,088 18.8% 29 Total Bill - Sales Service 27,135 37.1712 29,225 40.0341 2,090 7.7% 30 Bundled Direct Purchase Impact 16,917 19,007 26.0376 2,090 23.1747 12.4% Rate M4 - Small Customer 31 Delivery Charges 58,954 6.7376 58,979 6.7405 25 0.0% 32 Gas Supply Charges 122,469 13.9965 122,469 13.9965 - 0.0% 33 Federal Carbon Charge 133,438 15.2500 158,463 18.1100 25,025 18.8% 34 Total Bill - Sales Service 314,861 35.9841 339,911 38.8470 25,050 8.0% 35 Bundled Direct Purchase Impact 192,391 21.9876 217,442 24.8505 25,050 13.0% Rate M4 - Large Customer 36 Delivery Charges 472,901 3.9408 473,249 3.9437 348 0.1% 37 Gas Supply Charges 1,679,580 13.9965 1,679,580 13.9965 - 0.0% 38 Federal Carbon Charge 1,830,000 15.2500 2,173,200 18.1100 343,200 18.8% 39 Total Bill - Sales Service 3,982,481 33.1873 4,326,029 36.0502 343,548 8.6% 40 Bundled Direct Purchase Impact 2,302,901 19.1908 2,646,449 22.0537 343,548 14.9% Rate M5 - Small Customer 41 Monthly Customer Charge (2) 9,327 $ 777.26 9,327 $ 9,327.12 - 0.0% 42 Delivery Charges 29,603 3.5882 29,627 3.5911 24 0.1% 43 Gas Supply Charges 115,471 13.9965 115,471 13.9965 - 0.0% 44 Federal Carbon Charge 125,813 15.2500 149,408 18.1100 23,595 18.8% 45 Total Bill - Sales Service 280,213 33.9653 303,832 36.8282 23,619 8.4% 46 Bundled Direct Purchase Impact 164,742 188,361 22.8317 23,619 19.9688 14.3% Rate M5 - Large Customer 47 Monthly Customer Charge (2) 9,327 $ 777.26 9,327 $ 777.26 - 0.0% 48 Delivery Charges 217,237 3.3421 217,425 3.3450 189 0.1% 49 Gas Supply Charges 909,773 13.9965 909,773 13.9965 - 0.0% 50 Federal Carbon Charge 991,250 15.2500 1,177,150 18.1100 185,900 18.8% 51 Total Bill - Sales Service 2,127,586 32.7321 2,313,675 35.5950 186,089 8.7% 52 Bundled Direct Purchase Impact 1,217,814 1,403,902 21.5985 186,089 18.7356 15.3% Rate M7 - Small Customer 53 Delivery Charges 871,721 2.4214 872,765 2.4243 1,044 0.1% 54 Gas Supply Charges 5,038,740 13.9965 5,038,740 13.9965 - 0.0% 55 Federal Carbon Charge 5,490,000 15.2500 6,519,600 18.1100 1,029,600 18.8% 56 Total Bill - Sales Service 11,400,461 31.6679 12,431,105 34.5308 1,044 0.0% 57 Bundled Direct Purchase Impact 871,721 872,765 2.4243 1,044 2.4214 0.1% Rate M7 - Large Customer 58 Delivery Charges 3,396,434 6.5316 3,397,942 6.5345 1,508 0.0% 59 Gas Supply Charges 7,278,180 13.9965 7,278,180 13.9965 - 0.0% 60 Federal Carbon Charge 7,930,000 15.2500 9,417,200 18.1100 1,487,200 18.8% 61 Total Bill - Sales Service 18,604,614 35.7781 20,093,322 38.6410 1,508 0.0% 62 Bundled Direct Purchase Impact 3,396,434 3,397,942 6.5345 1,508 6.5316 0.0% Page 160 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 3 Schedule 2 Page 3of3 ENBRIDGE GAS INC. Union South Rate Zone Calculation of Bill Impacts for Typical Customers EB-2024-0166 - Current Approved (1) EB-2024-0251 - Proposed Bill Impact Total Total Total Bill Including Federal Line Bill Unit Rate Bill Unit Rate Change Carbon Charge No. Particulars ($) (cents/m3) ($) (cents/m3) ($) (%) (a) (b) (c) (d) (e) _ (c - a) (f) _ (e / a) Rate M9 - Small Customer (3) 63 Delivery Charges 209,336 3.0120 209,538 3.0149 202 0.1% 64 Gas Supply Charges 972,757 13.9965 972,757 13.9965 - 0.0% 65 Federal Carbon Charge - 0.0000 - 0.0000 - 0.0% 66 Total Bill - Sales Service 1,182,093 17.0085 1,182,294 17.0114 202 0.0% 67 Bundled Direct Purchase Impact 209,336 3.0120 209,538 3.0149 202 0.1% Rate M9 - Large Customer (3) 68 Delivery Charges 621,999 3.0826 622,584 3.0855 585 0.1% 69 Gas Supply Charges 2,824,214 13.9965 2,824,214 13.9965 - 0.0% 70 Federal Carbon Charge - 0.0000 - 0.0000 - 0.0% 71 Total Bill - Sales Service 3,446,212 17.0791 3,446,798 17.0820 585 0.0% 72 Bundled Direct Purchase Impact 621,999 3.0826 622,584 3.0855 585 0.1% Rate T1 - Small Customer 73 Monthly Customer Charge (2) 26,577 $ 2,214.74 26,577 $ 2,214.74 - 0.0% 74 Delivery Charges 145,630 1.9322 145,849 1.9351 219 0.2% 75 Gas Supply Charges 1,054,916 13.9965 1,054,916 13.9965 - 0.0% 76 Federal Carbon Charge 1,149,393 15.2500 1,364,951 18.1100 215,558 18.8% 77 Total Bill - Sales Service 2,376,516 31.5313 2,592,292 34.3942 219 0.0% 78 Bundled Direct Purchase Impact 1,321,599 17.5348 1,537,376 20.3977 215,777 16.3% Rate T1 - Average Customer 79 Monthly Customer Charge (2) 26,577 $ 2,214.74 26,577 $ 2,214.74 - 0.0% 80 Delivery Charges 240,612 2.0803 240,947 2.0832 335 0.1% 81 Gas Supply Charges 1,618,827 13.9965 1,618,827 13.9965 - 0.0% 82 Federal Carbon Charge 1,763,806 15.2500 2,094,591 18.1100 330,786 18.8% 83 Total Bill - Sales Service 3,649,821 31.5566 3,980,942 34.4195 335 0.0% 84 Bundled Direct Purchase Impact 2,030,994 17.5601 2,362,115 20.4230 331,121 16.3% Rate T1 - Large Customer 85 Monthly Customer Charge (2) 26,577 $ 2,214.74 26,577 $ 2,214.74 - 0.0% 86 Delivery Charges 574,367 2.2415 575,110 2.2444 743 0.1% 87 Gas Supply Charges 3,586,474 13.9965 3,586,474 13.9965 - 0.0% 88 Federal Carbon Charge 3,907,672 15.2500 4,640,521 18.1100 732,849 18.8% 89 Total Bill - Sales Service 8,095,090 31.5917 8,828,682 34.4546 743 0.0% 90 Bundled Direct Purchase Impact 4,508,616 17.5952 5,242,208 20.4581 733,592 16.3% Rate T2 - Small Customer 91 Monthly Customer Charge (2) 83,859 $ 6,988.28 83,859 $ 6,988.28 - 0.0% 92 Delivery Charges 704,094 1.1882 705,813 1.1911 1,718 0.2% 93 Gas Supply Charges 8,293,766 13.9965 8,293,766 13.9965 - 0.0% 94 Federal Carbon Charge 9,036,540 15.2500 10,731,262 18.1100 1,694,722 18.8% 95 Total Bill - Sales Service 18,118,260 30.5762 19,814,700 33.4391 1,718 0.0% 96 Bundled Direct Purchase Impact 9,824,494 16.5797 11,520,934 19.4426 1,696,440 17.3% Rate T2 - Average Customer 97 Monthly Customer Charge (2) 83,859 $ 6,988.28 83,859 $ 6,988.28 - 0.0% 98 Delivery Charges 1,849,034 0.9348 1,854,770 0.9377 5,736 0.3% 99 Gas Supply Charges 27,683,656 13.9965 27,683,656 13.9965 - 0.0% 100 Federal Carbon Charge 30,162,952 15.2500 35,819,742 18.1100 5,656,790 18.8% 101 Total Bill - Sales Service 59,779,502 30.2237 65,442,028 33.0866 5,736 0.0% 102 Bundled Direct Purchase Impact 32,095,846 16.2272 37,758,371 19.0901 5,662,526 17.6% Rate T2 - Large Customer 103 Monthly Customer Charge (2) 83,859 $ 6,988.28 83,859 $ 6,988.28 - 0.0% 104 Delivery Charges 3,128,493 0.8453 3,139,225 0.8482 10,733 0.3% 105 Gas Supply Charges 51,799,507 13.9965 51,799,507 13.9965 - 0.0% 106 Federal Carbon Charge 56,438,573 15.2500 67,023,118 18.1100 10,584,545 18.8% 107 Total Bill - Sales Service 111,450,431 30.1145 122,045,709 32.9774 10,733 0.0% 108 Bundled Direct Purchase Impact 59,650,924 16.1180 70,246,202 18.9809 10,595,278 17.8% Rate T3 - Large Customer (3) 109 Monthly Customer Charge (2) 279,791 $ 23,315.94 279,791 $ 23,315.94 - 0.0% 110 Delivery Charges 6,359,934 2.3321 6,367,842 2.3350 7,909 0.1% 111 Gas Supply Charges 38,170,135 13.9965 38,170,135 13.9965 - 0.0% 112 Federal Carbon Charge - 0.0000 - 0.0000 - 0.0% 113 Total Bill - Sales Service 44,809,860 16.4312 44,817,769 16.4341 7909 0.0% 114 Bundled Direct Purchase Impact 6,639,725 2.4347 6,647,634 2.4376 7,909 0.1% Notes: (1) EB-2024-0166, Exhibit F, Tab 1, Schedule 1, Appendix D. (2) Unit rate is equal to monthly dollar amount. (3) Rate M9 and Rate T3 customers are not charged the Federal Carbon Charge. Page 161 Line No. Particulars ($000's) 1 Balance 2 Interest 3 Total (1) Notes: (1) Exhibit D, Tab 3, Schedule 3, page 2. ENBRIDGE GAS INC. Union Rate Zones Summary of 2023 Federal Carbon Deferral and Variance Accounts Customer Carbon Charge - Variance Account 179-421 (a) Facility Carbon Charge - Variance Account 179-420 Greenhouse Gas Emissions Administration Deferral Account 179-422 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 3 Schedule 3 Page 1 of 2 Total (b) (c) (d) = (a+b+c) (4,717) 2,615 (2,102) (538) 241 (297) (5,255) 2,856 (2,399) Page162 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 3 Schedule 3 Page 2 of 2 ENBRIDGE GAS INC. Union Rate Zones Allocation of 2023 Federal Carbon Deferral and Variance Accounts Allocators Account Balances Jan - Dec 2023 Greenhouse Gas Total Total Customer Carbon Charge Facility Carbon Charge Emissions Administration Line Volumes 2013 A&G - Variance Account - Variance Account Deferral Account No. Particulars ($000's) 103m3 ($000's) 179-421 179-420 (1) 179-422 (2) Total (a) (b) (c) (d) (e) (f) _ (c+d+e) Union North In -franchise 1 Rate 01 931,782 31,817 - (100) 573 473 2 Rate 10 305,249 2,759 - (33) 50 17 3 Rate 20 1,074,225 2,373 - (115) 43 (72) 4 Rate 25 255,665 2,089 - (27) 38 10 5 Rate 100 942,952 953 - (101) 17 (84) 6 Total North In -franchise 3,509,873 39,992 - (376) 720 344 Union South In -franchise 7 Rate M 1 2,925,618 80,159 - (313) 1,443 1,130 8 Rate M2 1,151,051 7,539 - (123) 136 12 9 Rate M4 564,595 2,801 - (60) 50 (10) 10 Rate M5 58,966 3,131 - (6) 56 50 11 Rate M7 769,537 787 - (82) 14 (68) 12 Rate M9 97,880 108 - (10) 2 (9) 13 Rate T1 397,887 2,036 - (43) 37 (6) 14 Rate T2 5,069,101 5,624 - (543) 101 (442) 15 Rate T3 255,245 627 - (27) 11 (16) 16 Total South In -franchise 11,289,881 102,812 - (1,209) 1,851 642 Ex -franchise 17 Rate M12 20,690,666 14,918 - (2,216) 269 (1,947) 18 Rate M13 47,278 0 - (5) 0 (5) 19 Rate M16 273,664 21 - (29) 0 (29) 20 Rate M17 28,586 - (3) - (3) 21 Rate C1 13,233,295 323 - (1,417) 6 (1,411) 22 Excess Utility Storage Space - 597 - - 11 11 23 Total Ex -franchise 34,273,489 15,859 - (3,670) 285 (3,385) 24 Total In -franchise & Ex -franchise 49,073,243 (2,399) 158,663 - (5,255) 2,856 Notes: (1) Allocated in proportion to column (a). (2) Allocated in proportion to column (b). Page163 Filed: 2024-09-26 EB-2024-0251 Exhibit D Tab 3 Schedule 4 Page 1 of 1 ENBRIDGE GAS INC. Union Rate Zones Unit Rates for One -Time Adjustment 2023 Federal Carbon Deferral and Variance Account Disposition Line No. Particulars Deferral Balance for Disposition Volume Unit Rate ($000's) (1) (103m) (cents/m3) (a) (b) (c) _ (a / b)*100 Union North In -franchise 1 Rate 01 473 931,782 0.0508 2 Rate 10 17 305,249 0.0056 3 Rate 20 (72) 1,074,225 (0.0067) 4 Rate 25 10 255,665 0.0040 5 Rate 100 (84) 942,952 (0.0089) 6 Total North In -franchise 344 Union South In -franchise 7 Rate M1 1,130 2,925,618 0.0386 8 Rate M2 12 1,151,051 0.0011 9 Rate M4 (10) 564,595 (0.0018) 10 Rate M5 50 58,966 0.0849 11 Rate M7 (68) 769,537 (0.0089) 12 Rate M9 (9) 97,880 (0.0087) 13 Rate T1 (6) 397,887 (0.0015) 14 Rate T2 (442) 5,069,101 (0.0087) 15 Rate T3 (16) 255,245 (0.0063) 16 Total South In -franchise 642 Ex -franchise (2) 17 Rate M12 (1,947) 18 Rate M13 (5) 19 Rate M16 (29) 20 Rate M17 (3) 21 Rate C1 (1,411) 22 Total Ex -franchise (3,396) Notes: (1) Exhibit D, Tab 3, Schedule 3, page 2, column (f). (2) Ex -franchise M12, M13, M16, M17 and C1 customer specific amounts determined using approved deferral account allocation methodologies. Page 164 Filed: 2024-09-26 EB-2024-0251 Exhibit D ENBRIDGE GAS INC. Tab 3 Union Rate Zones Schedule 5 Typical Bill Impacts Page 1 of 1 2023 Federal Carbon Deferral and Variance Account Disposition Annual Bill Impact for Non-EPS Annual Bill Impact for EPS July 2U24 billJuly 2U24 Bill Unit Rate July 2024 Including Total Unit Rate July 2024 Including Total Line Annual Volume (1) Total Adjustment Bill (2) Adjustment Bill Impact (1) Total Adjustment Bill (2) Adjustment Bill Impact No. (m) (cents/m3) ($) ($) ($) (%) (cents/m3) (a) (b) (c) _ (a x b) / 100 (d) (e) _ (d + c) (f) = (c / d) (g) (h) _ (a x g) / 100 (i) Q) _ (I + h) (k) = (h / i) Union North In -franchise 1 Rate01 -Small 2,200 0.0508 1.12 1,379 1,380 0.1% 0.0508 1.12 1,043 1,044 0.1% 2 Rate 10 - Small 60,000 0.0056 3.34 27,325 27,328 0.0% 0.0056 3.34 18,175 18,178 0.0% 3 Rate 10 - Large 250,000 0.0056 13.90 108,628 108,642 0.0% 0.0056 13.90 70,503 70,517 0.0% 4 Rate 20 - Small 3,000,000 (0.0067) (202) 1,035,685 1,035,483 (0.0%) (0.0067) (202) 578,185 577,983 (0.0%) 5 Rate 20 - Large 15,000,000 (0.0067) (1,010) 5,024,174 5,023,164 (0.0%) (0.0067) (1,010) 2,736,674 2,735,664 (0.0%) 6 Rate 25 - Average 2,275,000 0.0040 91 769,180 769,271 0.0% 0.0040 91 422,242 422,333 0.0% 7 Rate 100 - Small 27,000,000 (0.0089) (2,400) 9,313,324 9,310,923 (0.0%) (0.0089) (2,400) 5,195,824 5,193,423 (0.0%) 8 Rate 100 - Large 240,000,000 (0.0089) (21,334) 82,100,801 82,079,466 (0.0%) (0.0089) (21,334) 45,500,801 45,479,466 (0.0%) Union South In -franchise 9 Rate M 1 - Small 2,200 0.0386 0.85 1,109 1,109 0.1% 0.0386 0.85 773 774 0.1% 10 Rate M2 - Small 60,000 0.0011 0.65 22,493 22,493 0.0% 0.0011 0.65 13,343 13,343 0.0% 11 Rate M2 - Large 250,000 0.0011 2.70 89,890 89,893 0.0% 0.0011 2.70 51,765 51,768 0.0% 12 Rate M4 - Small 875,000 (0.0018) (16) 314,861 314,845 (0.0%) (0.0018) (16) 181,423 181,407 (0.0%) 13 Rate M4 - Large 12,000,000 (0.0018) (213) 3,982,481 3,982,267 (0.0%) (0.0018) (213) 2,152,481 2,152,267 (0.0%) 14 Rate M5 - Small 825,000 0.0849 700 280,213 280,914 0.2% 0.0849 700 154,401 155,101 0.5% 15 Rate M5 - Large 6,500,000 0.0849 5,516 2,127,586 2,133,102 0.3% 0.0849 5,516 1,136,336 1,141,852 0.5% 16 Rate M7 - Small 36,000,000 (0.0089) (3,192) 11,400,461 11,397,268 (0.0%) (0.0089) (3,192) 5,910,461 5,907,268 (0.1%) 17 Rate M7 - Large 52,000,000 (0.0089) (4,611) 18,604,614 18,600,003 (0.0%) (0.0089) (4,611) 10,674,614 10,670,003 (0.0%) 18 Rate M9 - Small 6,950,000 (0.0087) (606) 1,182,093 1,181,487 (0.1%) 19 Rate M9 - Large 20,178,000 (0.0087) (1,760) 3,446,212 3,444,452 (0.1%) 20 Rate T1 - Small 7,537,000 (0.0015) (113) 2,376,516 2,376,403 (0.0%) (0.0015) (113) 1,227,123 1,227,010 (0.0%) 21 Rate T1 -Average 11,565,938 (0.0015) (173) 3,649,821 3,649,647 (0.0%) (0.0015) (173) 1,886,015 1,885,842 (0.0%) 22 Rate T1 - Large 25,624,080 (0.0015) (384) 8,095,090 8,094,706 (0.0%) (0.0015) (384) 4,187,418 4,187,034 (0.0%) 23 Rate T2 - Small 59,256,000 (0.0087) (5,162) 18,118,260 18,113,097 (0.0%) (0.0087) (5,162) 9,081,720 9,076,557 (0.1%) 24 Rate T2 - Average 197,789,850 (0.0087) (17,231) 59,779,502 59,762,271 (0.0%) (0.0087) (17,231) 29,616,550 29,599,319 (0.1%) 25 Rate T2 - Large 370,089,000 (0.0087) (32,241) 111,450,431 111,418,190 (0.0%) (0.0087) (32,241) 55,011,859 54,979,617 (0.1%) 26 Rate T3 - Large 272,712,000 (0.0063) (17,152) 44,809,860 44,792,708 (0.0%) Notes: (1) Exhibit D, Tab 3, Schedule 4, column (c). (2) Typical annual bill for a sales service customer at approved July 2024 QRAM rates (EB-2024-0166). Page165 ONTARIO ENERGY BOARD NOTICE OF A RATE HEARING Enbridge Gas Inc. has applied to increase its natural gas rates effective April 1, 2025, to recover costs associated with meeting its obligations under the Greenhouse Gas Pollution Pricing Act and the regulations under the Ontario Emissions Performance Standards, as well as to recover other related account balances. If the application is approved as filed, a typical residential customer of Enbridge Gas Inc. would see the following total annual increase: EGD Rate Zone (2,400 m3) $70.84 Union South Rate Zone (2,200 m3) $63.83 Union North Rate Zone (2,200 m3) $64.10 For a typical residential customer, these increases include an annual bill increase arising from the 2025 carbon charges of $68.71 (EGD) and $62.98 (Union South and Union North); plus, a one-time charge of $2.13 (EGD), $0.85 (Union South) and $1.12 (Union North) to recover the balances in the related deferral and variance accounts. Other customers, including businesses, will also be affected. It's important to review the application carefully to determine whether you may be affected by the proposed changes. The federal government's Greenhouse Gas Pollution Pricing Act establishes a carbon pricing program under which a natural gas utility in Ontario, such as Enbridge Gas Inc., is required to pay a carbon charge to the federal government on the volume of natural gas that it delivers to its customers, and on the volume of natural gas used in the operation of Enbridge Gas Inc.'s natural gas distribution system. The federal carbon charge came into effect on April 1, 2019, has increased annually on April 1st between 2020 and 2024 and will increase again on April 1, 2025. The Ontario Emissions Performance Standards program is the Ontario government's carbon pricing system for industrial emitters that came into effect on January 1, 2022, and replaced the federal government's Output -Based Pricing System in Ontario. There are three types of OEB hearings: oral, electronic and written. The applicant has applied for, and the OEB intends to proceed with, a written hearing. If you think a different hearing type is needed, you can write to us to explain why. During this hearing, we will hear questions and arguments from participants about this case. We will also hear questions and arguments from participants that have registered as Intervenors. After the hearing, we will decide whether to approve the application. HAVE YOUR SAY You have the right to information about this application and to participate in the process. Visit www.oeb.ca/notice and use file number EB-2024-0251 to: • Review the application • File a letter with your comments • Apply to become an intervenor IMPORTANT DATES You must engage with the OEB on or before November 12t'', 2024 to: • Provide input on the hearing type (oral, electronic or written) • Apply to be an intervenor If you do not, the hearing will move forward without you, and you will not receive any further notice of the proceeding. PRIVACY If you write a letter of comment, your name and the content of your letter will be put on the public record and the OEB website. If you are a business or if you apply to become an intervenor, all the information you file will be on the OEB website. Ontario Energy Board a /TTY: 1 877-632-2727 4 Monday - Friday: 8:30 AM - 5:00 PM oeb.ca/notice Enbridge Gas Inc. 9 1 877-362-7434 O Monday - Friday: 8:30 AM - 5:00 PM https://www.enbridgegas.com/en/about- enbridge-gas/regulatory This hearing will be held under section 78 of the Ontario Energy Board Act, 1998. Ce document est aussi disponible en frani;ais. Page166 WV% Ontario Energy Zr Board Ontario