ENBRIDGE GAS PROPOSAL

1. In order to avoid the regulatory burden associated with separate applications to the Ontario Energy Board ("OEB" or the "Board") for project specific System Expansion Surcharge ("SES") or Temporary Connection Surcharge ("TCS") and Hourly Allocation Factor ("HAF") approvals, Enbridge Gas is requesting Board approval to apply the SES or TCS and HAF for future projects in accordance with pre-set criteria consistent across the Enbridge Gas rate zones. The SES and TCS are rate surcharges applicable to general service customers in the project area. The HAF will be used to allocate capital costs to customers for the purposes of conducting economic feasibility analyses for those served by the project. The details related to the proposed SES, TCS and HAF are further described in this evidence and the other exhibits referenced herein.

2. Enbridge Gas is seeking approval under section 36 of the Ontario Energy Board Act, 1998, as amended ("OEB Act"), for application of the SES and TCS as described in this evidence, including proposed amendments to its respective rate schedules as set out in Exhibit C, Tab 1, Schedule 1 and Exhibit C, Tab 1, Schedule 2. Enbridge Gas is also seeking Board approval for use of the HAF, which is a cost allocation mechanism to be used for economic feasibility calculations (not a rate), as described in this evidence and in proposed amendments to the Company's feasibility policies1 as set out in Exhibit C, Tab 2, Schedule 1 and Exhibit C, Tab 2, Schedule 2. The feasibility policies also contain explanations about the SES and TCS.

1 For the Union rate zones, the feasibility policy is entitled the Distribution New Business Guidelines and for the EGD rate zone, the feasibility policy is entitled Economic Procedure and Policy.