Non-Binding Expression of Interest (EOI) FAQs
- Enbridge Gas’ contract rate customers are some of the largest consumers of natural gas in Ontario. These customers include such sectors as petrochemical, steel, cement, automotive manufacturing, greenhouses, large institutions, and many other sectors.
- It is important for Enbridge Gas to gauge regularly if our contract rate customers continue to need the amount of natural gas they are currently contracted for.
- As such, Enbridge Gas account managers hold regular discussions with contract rate customers to discuss their natural gas needs.
- Enbridge Gas’ contract rate customers are some of the largest consumers of natural gas in Ontario. These customers include such sectors as petrochemical, steel, cement, automotive manufacturing, greenhouses, large institutions, and many other sectors.
- When Enbridge Gas identifies that there is, or will shortly be, an increased demand for natural gas in a specific area of the province (via ongoing discussions our account managers have with contract rate customers or gained via insights from Municipal or Regional official plans), we will plan to rationally expand our system, often through a pipeline reinforcement project.
- When that increased demand is identified, it is important for Enbridge to formally gauge the interest in that defined area of the province and have contract rate customers located in that area indicate their desired increased demand for natural gas. This is what a non-binding expression of interest is.
- A non-binding expression of interest gathers data to generate an informed forecast that identifies the location, timing and size of customer growth. Enbridge then uses this data to design the optimal project to meet demand.
- Enbridge Gas will send a bid form out to all contract rate customers in a defined area of the province we have identified an increased demand for natural gas in.
- This form will be requested to be returned to Enbridge Gas in a defined period, for example, 30 business days.
- In the form, contract rate customers are asked to bid on:
- If they want to add new firm natural gas service. Firm means guaranteed natural gas service.
- If they want to convert any current interruptible natural gas service they have to firm natural gas service. Interruptible customers’ natural gas consumption may be stopped in times of significant need in the province, such as a very cold day. Interruptible customers must have a backup fuel or energy source available for when natural gas is stopped.
- If they want to add any new interruptible natural gas service.
- Once all bid forms are received and the Non-Binding EOI and or Non-Binding ROS closes, Enbridge Gas acknowledges receipt of the bid forms, and then reviews them.
- Enbridge Gas, in its sole discretion, reserves the right to reject any/all bids received.
- Once Enbridge Gas’ review is complete, results of the bid process are communicated to the contract rate customers.
- If there is insufficient customer interest, an expansion project is unlikely to proceed.
- If there is sufficient customer interest, any reinforcement project proposed by Enbridge Gas to meet the identified demand from the non-binding expression of interest may be subject to a leave-to-construct application being approved by the Ontario Energy Board.
Non-Binding Reverse Open Season (ROS) FAQs
- When Enbridge Gas identifies that there is, or will shortly be, an increased demand for natural gas in a specific area of the province (via ongoing discussions our account managers have with contract rate customers or gained via insights from Municipal or Regional official plans), we will plan to rationally expand our system, often through a pipeline reinforcement project.
- As part of our planning, Enbridge Gas will seek to ensure that any contract rate customers who wish to reduce their natural gas consumption (known as ‘de-contracting’) are accounted for in that planning. This is what a non-binding reverse open season is.
- Enbridge Gas will send a bid form out to all contract rate customers in a defined area of the province for which we have identified an increased demand for natural gas.
- This form will be requested to be returned to Enbridge Gas in a defined period, for example, 30 business days.
- In the form, contract rate customers are asked to bid on:
- Firm (guaranteed gas) customers: If they want to turn back (also known as give up) any firm natural gas service, they are receiving; or convert that firm gas service to interruptible service. Interruptible customers’ natural gas consumption may be stopped in times of significant need in the province, such as a very cold day. Interruptible customers must have a backup fuel or energy source available for when natural gas is stopped.
- Interruptible customers: If they want to turn back any interruptible natural gas service.
- Once all bid forms are received and the EOI/ROS closes, Enbridge Gas acknowledges receipt of the bid forms, and then reviews them.
- Bids submitted in a non-binding reverse open season represent a legally non-binding commitment.
- Enbridge Gas, in its sole discretion, reserves the right to reject any/all bids received.
- Once Enbridge Gas’ review is complete, results of the bid process are communicated to the contract rate customers, and their account managers work with them to adjust their consumption accordingly.
- Yes, in some cases the volume of identified increased demand may be accounted for by the ‘de-contracted’ demand from the contract rate customers.
- IRP is a natural gas planning strategy and process where Enbridge Gas evaluates whether traditional pipe alternatives or non-pipeline alternatives can meet the system need.
- Non-pipeline alternatives can include:
- Demand side alternative:
- Lowering or shifting energy use through energy efficiency programs such as enhanced targeted energy efficiency (ETEE) programs or demand response (DR) programs.
- Supply side alternative:
- Delivering more energy without adding new pipeline using compressed natural gas (CNG) or liquified natural gas (LNG).
- Adding supply through upstream deliveries.
- Demand side alternative:
- Non-pipeline alternatives can include:
- Alternatives can be implemented individually or in combination to meet the system need, with consideration for safety, reliability, cost effectiveness, public policy, optimized scoping, and risk management.
- In the case of the mandatory conservation questions, Enbridge Gas is seeking to understand whether energy conservation activities have already been taken into consideration in either the Expression of Interest bid or in the Reverse Open Season to lower the existing contract demand, and whether there would interest to further explore energy conservation opportunities to lower the bid amount and/or existing contract demand. These insights help identify whether existing energy conservation opportunities, or incremental opportunities through providing customers with access to incremental support or incentives as demand-side IRP alternatives, can impact or reduce the firm natural gas service of the customer and ultimately the project scope.
- In the case of the interruptible service questions, Enbridge Gas is seeking to understand whether there would be interest in switching from new or existing firm distribution service to interruptible service if the ability to negotiate lower than posted interruptible rates was available and the delivery rate that would be required. This information will help to inform the potential for interruptible service to meet the customers needs, and at what cost for consideration as a potential demand-side IRP alternative to impact the project scope.
