application that the SES, as detailed below, be approved for use for future Community Expansion Projects in all rate zones.

10. Under this proposal, provided that the area to be served by an Expansion Project includes 50 or more existing potential customers, the SES will apply to all small volume customers located in the project area. As noted above, customers will be charged the applicable Enbridge Gas regulated distribution rate, as well as the SES. The SES will appear as a separate line item on each customer's monthly Enbridge Gas bill. Potential customers will be informed of the details of the SES charge as each Community Expansion Project is developed, as well as at the time they make their application to Enbridge Gas for service.

11. The SES will apply for a period of up to 40 years. The term of the SES for each project will be set such that the project will achieve a PI of at least 1.0. Enbridge Gas notes that there is a difference in approach between the EGD and Union rate zones with respect to updating the project's PI and its impact on the duration of the SES. In this application, Enbridge Gas is proposing to adopt the SES on the same basis as it has for previously approved projects in the Union rate zones (e.g.,EB2015-0179). As such, the Company is not proposing to periodically update the project's PI for the duration of the SES term.

12. In the OEB's recent EB-2019-0188 Decision concerning the extension of gas service to the Northshore and Peninsula Roads area in the City of North Bay the Board noted that under the same proposal as that outlined above the increased profitability of a project would be captured in the Company's base rates resulting in reduced rates for all customers. This treatment is consistent with the portfolio concept that underpins the Board's E.B.O. 188 Guidelines that requires the Company's