Toronto: A review of the natural gas market and related regulatory issues is now underway in Ontario. The Ontario Energy Board announced plans for the review in September, commissioned expert reports, and engaged stakeholders during the fall.
The Board noted that significant changes are affecting the Ontario natural gas sector including increasing North American shale gas production, rising power sector demand for natural gas and changing inter-regional pipeline flows. Generators were invited to become involved as the Board may consider issues that would affect future decisions affecting service to gas-fired power generators. The Board notes that “insights gained through the Review will assist the Board to:
• identify the potential need for modifications to the Board’s regulatory framework/policies; and
• review utility applications that affect the rates and quality of service to customers.”
The Board hosted a stakeholder conference on December 2 and 3.
APPrO’s comments filed for the stakeholder conference covered a range of generator concerns but a few highlights were the following:
Status of gas-fired generation in Ontario
• Over 9,600 MW of existing GFG power plants
• Over 1,200 MW of new GFG power plants under development (including Napanee and St. Clair Township as well as 14 MW CHP)
• GFG power production is essential to:
» Meet Ontario’s power needs in a post coal environment
» Backstop the variability from renewable energy production
APPrO noted that:
• Under the LTEP, the percentage of installed capacity of GFG is expected to remain constant at about 25%
• New plants and higher capacity factors will result in the GFG load being the fastest growing natural gas sector in Ontario (0.32 TCF by 2020)
• The existing utility services do not fully meet the needs of generators
• APPrO proposes that all dispatchable generators be eligible for UDCQ
• APPrO proposes to continue to work with Union to seek out reasonable solutions re Union North Service obligation to switch to a medium volume when dispatchable.
• APPrO believes that the OEB should ensure that there are sufficient upstream resources to ensure security of supply and to minimize price volatility.
For more information on the proceeding or APPrO’s submission to it, please see the OEB website (EB-2014-0289) or contact APPrO.