3. If the Board accepts Enbridge Gas's proposal, it would no longer be necessary for Enbridge Gas to seek approval under section 36 of the OEB Act for the SES and TCS on a project specific basis either for projects that meet the criteria for a leave to construct ("LTC") application or for smaller distribution projects. Similarly, Enbridge Gas would be able to use the HAF in accordance with its feasibility policies without obtaining Board approval on a project specific basis.

4. Enbridge Gas is proposing two rate surcharges (SES and TCS) to address two distinct project types:

i. The SES will be applicable to each Community Expansion Project, defined as a natural gas system expansion project for which the profitability index ("PI") is less than 1.0 and which will provide first-time natural gas system access to a minimum of 50 potential small volume general service customers, each of whom consume no more than 50,000 m³ per year ("small volume customers"). Customers who consume more than 50,000 m³ per year will have the option of paying the SES or negotiating another method of contribution to the project; and

ii. The TCS may be applicable to each Small Main Extension or Customer Attachment Project, defined as a natural gas system expansion or extension project for which the PI is less than 1.0 and which will provide distribution access to fewer than 50 potential small volume customers. Customers who consume more than 50,000 m³ per year will have the option of paying the TCS or negotiating another method of contribution to the project. These projects include the extension of mains, the related service attachments and any service lines to individual customers connecting to pre-existing mains.