The Enbridge Gas Phase 1 Decision: The OEB, the Minister of Energy, the Natural Gas System and the Energy Transition | Power Advisory LLC

A commentary by some colleagues and myself that examines a recently issued Decision by the Ontario Energy Board as part of Enbridge Gas Inc.’s 2024-2028 Rates Proceeding. A primary focus of the proceeding was the energy transition and its implications both for Enbridge’s capital spending plans and the future of the province’s natural gas distribution system, generating significant examination of stranded asset risks. The decision was followed quickly by an announcement from Ontario’s Minister of Energy that he would use his authorities to pause the decision, and introduce legislation to reverse it. The series of events reveals how the energy transition is posing complex challenges for Ontario’s energy sector, policy makers and regulators to navigate as they attempt to manage and align on competing and conflicting priorities, including energy affordability, stranded asset risks, emissions reductions, and broader policy objectives, such as housing and economic development.