2021) cost associated with OBPS Volumes is $3.96 million: $0.57 million for the EGD rate zone and $3.39 million for the Union rate zones (please see Exhibit B for additional detail on costs associated with OBPS Volumes for the period of January 1, 2021 to December 31, 2021).
2.3 MANAGEMENT OF FACILITY-RELATED EMISSIONS AND COSTS
- 26.Consistent with Enbridge Gas’s commitment “…to provide the OEB with a summary of the preliminary economic assessment (compared to the Federal Carbon Charge) of projects with the potential to reduce Enbridge Gas’s emission intensity under OBPS” this section of evidence contains details on the potential options for reducing Enbridge Gas’s facility-related emissions and associated costs.20 Facility-related emissions and associated costs can be reduced through the reduction of either Company-Use Volumes or OBPS Volumes, or, in the case of OBPS emissions, through the use of lower cost compliance options (as discussed in paragraph 10 above).
Facility-Related Volume Reductions
- 27.As discussed in Enbridge Gas’s responses to interrogatories dealing with its 2020 Application, in 2019, Enbridge Inc. (the parent company of Enbridge Gas) implemented a Carbon and Energy Efficiency Plan (“CEE Plan”) to identify emission reduction opportunities in each of its business units, including at Enbridge Gas.21 At that time, Enbridge Gas stated that it had not yet identified cost-effective opportunities that would result in significant reductions in emissions related to stationary combustion and flaring.22 However, Enbridge Gas has continued its work in this regard, evaluating the feasibility, emission reduction potential and cost of
20 EB-2019-0247, Enbridge Gas Reply Argument, July 16, 2020, p.13. The OEB subsequently found that Enbridge Gas’s proposal was appropriate; EB-2019-0247, OEB Decision and Order, August 13, 2020, pp. 9-10.
21 EB-2019-0247, Exhibit I.STAFF.9 d), June 18, 2020.
22 Cost-effectiveness on a $/tCO2e basis is based on a comparison to the excess emission charge, which is the carbon price in $/tCO2e as outlined in Table A-1. Rates of charge applicable from 2019-2022 are outlined in Schedule 4 of the GGPPA.