• 9. Consistent with the Board’s previous findings on Enbridge Gas’s 2019 Application and 2020 Application, and considering that at the time of this submission the OEB has not yet made any determination regarding the Deferred Issues, this Application requests approval to: (i) increase the Federal Carbon Charge and Facility Carbon Charge (both of which are discussed below) to recover costs associated with meeting Enbridge Gas’s obligations under the FCPP on a final basis for all customers, with the exception of Federal Carbon Charges as they apply to First Nations on-reserve customers; and (ii) increase rates on an interim basis for First Nations on-reserve customers and to continue tracking such charges until the OEB makes a determination on the Deferred Issues.8

1.1 THE FEDERAL CARBON PRICING PROGRAM

• 10.The FCPP is composed of two elements:

i) A charge on fossil fuels (the “Federal Carbon Charge”) as a cost per unit of fuel, including natural gas (cubic meters or m3), imposed on distributors, importers and producers applicable from 2019 to 2022 under Part 1 of the GGPPA. This charge applies to fuel delivered by Enbridge Gas to its customers and to Enbridge Gas’s own fuel use within its distribution system (i.e. for distribution buildings, boilers/line heaters and Natural Gas Vehicle (“NGV”) fleet fuel). Exemptions from the Federal Carbon Charge are explained below. The Federal Carbon Charge is equivalent to $40 per tonne of carbon dioxide equivalent (“tCO2e”) or 7.83 ¢/m3 in

8 Enbridge Gas proposes to maintain a reference to the interim nature of the Federal Carbon Charge for

First Nations on-reserve customers in its rate schedules in accordance with the Board’s Decision and

Rate Order on its 2020 Application (EB-2019-0247, OEB Decision and Rate Order, September 3, 2020, p.