Economic Development and Site Selection Service Frequently Asked Questions

• 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 binding reverse open season 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.

• 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.
• As energy transition continues to be a priority for Enbridge Gas and our contract rate customers, 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.

• 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.
• Enbridge Gas may also review and consult with Municipalities on their Municipal & Community Energy Plans to determine if there will be any upcoming changes that would align with a climate change initiative such as changes to building codes that would result in reduced reliance on natural gas / regional insights. Enbridge Gas also reviews provincial and federal policies and regulations, codes and standards with the same intent.
• Because energy transition is a priority, while we work to plan reinforcement projects, we will also formally ensure, that any contract rate customers who wish to reduce their natural gas consumption (known as ‘de-contract’) are accounted for in that planning. This is what a 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 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:
  • 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 binding reverse open season closes, Enbridge Gas acknowledges receipt of the bid forms, and then reviews them.
• Bids submitted in a binding reverse open season represent a legally 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.
• Enbridge Gas prudently focuses on energy transition by avoiding the need to further expand our system while at the same time ensuring all increased demand can be served.

• Integrated Resource Planning ( IRP) is the backbone of why binding reverse open seasons are conducted by Enbridge Gas.
• IRP is a natural gas planning strategy and process where Enbridge Gas forecasts what energy demand will look like, determines whether a traditional pipe expansion project or an alternative will meet the energy need, and then lays out a roadmap for how we will manage it. As part of this process, we gather input and feedback from communities on what matters most.
• 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).
    • Displacing conventional natural gas with carbon neutral renewable natural gas (RNG) and/or hydrogen.
    • Adding supply through upstream deliveries.
• Alternatives can be implemented individually or in combination to meet the system's need, cost effectively and within the required timeframe.
• In the case of a binding reverse open season, Enbridge Gas is seeking to answer the question of whether the increased overall demand identified in an area of the province can be offset by the reduction in natural gas consumption by our largest consumers, contract rate customers – thereby eliminating the need for a pipeline reinforcement project.

Bids are only binding on the condition of a project or projects (if required) being completed by Enbridge to ensure the turnback capacity or conversion of service.