3. Enbridge Gas's proposal addresses several distinct distribution system expansion project types:

(i) Community Expansion Project – system expansion project for which the profitability index ("PI") is less than 1.0 and which provides firsttime natural gas service to a minimum of 50 potential small volume general service customers, each of whom consume 50,000 m3 per year ("small volume customers"). The SES would be set at the same fixed volumetric rate of $0.23/m3 as the current SES approved for the EGD and Union rate zones. It would apply to small volume customers served by these projects and larger volume customers would have the option to pay the SES or negotiate another method of contribution to the capital costs for the project;

(ii) Small Main Extension or Customer Attachment Projects – other forms of distribution expansion or extension projects for which the PI is less than 1.0 and which provide natural gas access to fewer than 50 potential small volume customers. The TCS would be set at the same fixed volumetric rate of $0.23/m3 as the SES. Enbridge Gas may apply the TCS to small volume customers served by these projects and larger volume customers would have the option to pay the TCS or negotiate another method of contribution to the capital costs of the project; and

(iii) Development Projects – system expansion project that will expand capacity over a certain area to serve increasing demands from existing and/or new customers. It may include a mix of large and small volume customers. The Company may use the HAF to allocate the capital costs of the project amongst the existing and future customers of those facilities within the project area.