• 3. On August 30, 2018, in the MAADs Decision1, the Board approved a rate setting mechanism (Price Cap IR) for Enbridge Gas, which sets out a multi-year incentive rate-setting mechanism (“IRM”) for the calendar year term of 2019 to 2023 (the “five year term” or the “deferred rebasing period”). The MAADs Decision confirmed that during the five year term, distribution rates will be set separately for the EGD and Union rate zones. The MAADs Decision also approved the specific treatment of various elements in the IRM including the availability of an ICM during the five year term.

• 4. The 2021 Rate Application (EB-2020-0095) is the third annual rate adjustment application under the IRM approved in the MAADs Decision. In its 2021 Rate Application, Enbridge Gas proposed to continue with a bifurcated approach, similar to the 2020 Rate Application, where distribution rates relating to the IRM adjustments would be processed and adjudicated first (as “Phase 1”) and matters related to ICM funding would be addressed in “Phase 2” of the EB-2020-0095 proceeding.

• 5. On June 30, 2020, Enbridge Gas filed supporting evidence for “Phase 1” of its 2021 Rate Application (EB-2020-0095) to address the IRM related elements which included the annual rate escalation, pass-through costs, capital pass-through adjustment and Parkway Delivery Obligation rate adjustment. On October 8, 2020, Enbridge Gas and all interested parties filed a Settlement Proposal that resolved all matters in “Phase 1” of the 2021 Rate Application, and includes draft Interim Rate Orders for updated 2021 rates to be effective January 1, 2021.

• 6. In its letter dated July 14, 2020 in EB-2020-0095, the OEB determined that it will process the “Phase 1” and “Phase 2” filings for the 2021 Rate Application as

 

 

1 EB-2017-0306/0307.Consolidated Council Agenda - November 9, 2020