On September 21, 2017, the Ontario Energy Board issued its
public and confidential decisions approving the 2017 Cap and Trade
Compliance Plans filed by the three Gas Utilities subject to
certain minor administrative adjustments. The Board approved the
total estimated cost consequences for rate making purposes, which
totalled $337 million for Enbridge Gas Distribution, $279.5 million
for Union Gas and $867,000 for NRG. The variance between the
amounts recovered in rates and the actual cost of compliance will
be recorded in a variance account which will be subject to
disposition as part of each Gas Utility's 2019 Cap and Trade
Compliance Plan filing.
In the public decision, the Board approved each of
the Gas Utilities' volumetric and GHG emissions forecasts. It
also approved the use of a proxy price for carbon allowances in
2017 equal to the Ontario Auction Reserve (floor price) of
$17.70/tCO2e for Enbridge and Union Gas. In respect of the
longer-term investments,
