For the transportation service, the rate increase primarily reflects the shortfall observed at the end of the 2019–2020 fiscal year, the recovery of which is included in the 2021–2022 rate case. This shortfall was due to a difference between:
This situation resulted in the determination of a debit for transportation, rather than a credit as anticipated in the rate case, and a DEA, which will be recovered from customers.
- Supply prices at the purchase points set out in the 2019–2020 rate case
- Actual supply prices at the purchase points observed during that year (Reminder: All purchases are functionalized at Dawn.)
It’s important to understand that the scope of the increase for the transportation service was also influenced by the previous 2020–2021 rate, which was very low as it included the remittance of an overpayment from 2018–2019. Given the transition from a rate that includes an overpayment to a rate that includes a shortfall, the increase is even steeper.
It should be noted that a portion of the rate increase for the transportation service stems from a rate increase for TransCanada PipeLines Limited (TCPL) as of January 1, 2021, the impact of which will extend over all 12 months of 2021–2022, whereas its impact lasted only nine months in 2020–2021. It’s important to remember that rate for Énergir’s transportation service benefited from significant reductions in fiscal 2018–2019 and 2019–2020 due to the remittance of overpayments via TCPL rates.