OEB Allows Correction Of Error From 2011 Rates Proceeding

On September 21, 2017, the Ontario Energy Board issued a decision in which it ordered Natural Resource Gas Limited (NRG) to correct the reference prices used in NRG's Purchased Gas Transportation Variance Account (PGTVA) for fiscal years 2011 to 2015.

NRG records in the PGTVA, on a monthly and unit basis, the difference between its actual costs for transportation of natural gas to its system and OEB-approved reference prices multiplied by NRG's load forecast sales volume. The load forecast sales volume includes both gas delivered into NRG's system by Union Gas Limited (Union) and purchases of gas by NRG from local production.

When preparing a 2017 rates application to the OEB, NRG realized that an error had been made in its 2011 rates proceeding (EB-2010-0018 application for approval of rates for the 2011 fiscal year commencing October 1, 2010). As a result of the error, the PGTVA reference prices were based on Union's transportation volumes rather than NRG's load