Investment Portfolio PI to be greater than 1.0 (1.0 plus a safety margin)7. It is the Company's view that this E.B.O. 188 requirement implicitly recognizes that some projects will be more profitable than others and that over the discounted cash flow period over which the project PIs are calculated, more profitable projects will result in investment Portfolio PI greater than 1.0 and declining rates for all customers over time, all else equal.

13. After the term of the SES is set, there may be customers who attach to the Community Expansion Project after it has been placed into service. Customers attaching after the in-service date will also be required to pay the SES for the remainder of the SES term for that project. Similarly, the ongoing obligation for payment of the SES will attach to the property (not the owner) for the balance of the original term.

14. Enbridge Gas's proposal for the SES has been set out such that it meets the criteria as defined in the Generic Proceeding, EB-2016-0004. Enbridge Gas's proposal is also consistent with the E.B.O. 188 Guidelines. By adhering to both, Enbridge Gas will be maintaining the principle of avoiding long term cross-subsidization by existing customers of new customers.

15. Enbridge Gas recognizes that the initial evaluation of a Community Expansion Project and the SES term are determined based on estimated capital costs and a forecast of customer attachments, revenue rates, and natural gas consumption. Following the end of a project's Rate Stabilization Period ("RSP"), Enbridge Gas will use the actual project revenues including actual SES revenues for ratemaking purposes subject to OEB review and approval. In other words, Enbridge Gas will not

7 E.B.O. 188, Final Report of the Board relating to Natural Gas System Expansion, page 11