Company: ENBSF
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000895728-25-000006
Chunk: 191

Company: ENBRIDGE INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 1
Chunk 191
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 the distribution system or directly into our distribution systems, or, alternatively, they may choose a system supply option, whereby customers purchase natural gas from our supply portfolio. A significant portion of our customers in Ohio participate in the Energy Choice program, under which residential customers are encouraged to purchase gas directly from retail suppliers or through a community aggregation program and have it delivered by us. Customers in our other franchise areas predominantly purchase gas from our diversified natural gas supply portfolio, which we maintain by acquiring supplies on a delivered basis, as well as acquiring supply from multiple supply basins across North America. Certain of our US Gas Utilities have a revenue decoupling mechanism whereby non-gas revenues are decoupled from the temperature-adjusted usage per customer, which allows for the collection of an allowed monthly revenue per customer and to promote energy conservation. 

Transportation

Our gas utility franchises also offer transportation services to move gas through the areas we operate in to key markets throughout North America. Enbridge Gas Ontario contracts for firm transportation service, primarily with TransCanada Pipelines Limited, Vector and NEXUS, to meet its annual natural gas supply requirements. The transportation service contracts are not directly linked with any particular source of natural gas supply. Separating transportation contracts from natural gas supply provides flexibility in obtaining its own natural gas supply and accommodating the requests of its direct purchase customers for assignment of pipeline capacity.

In addition to contracting for transportation service, Enbridge Gas Ontario offers firm and interruptible transportation services on its own Dawn-Parkway pipeline system. Enbridge Gas Ontario’s transmission system also links an extensive network of underground storage pools at the Tecumseh Gas Storage facility and Dawn Hub (collectively, Dawn) to major Canadian and US markets, and forms an important link in moving natural gas from western Canada and US supply basins to central Canadian and northeastern US markets.

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As the supply of natural gas in areas close to Ontario has continued to grow, there has been increased demand to access these diverse supplies at Dawn and transport them along the Dawn-Parkway pipeline system to markets in Ontario, eastern Canada and the northeastern US. A substantial amount of Enbridge Gas Ontario’s transportation revenue is generated by fixed annual demand charges.

Enbridge Gas Ohio system expansion projects over the last decade have provided the opportunity to offer transportation services as an attractive outlet for shale production, by virtue of its proximity to the Utica and Marcellus shale basins while enhancing on-system operational flexibility.

Storage

Our gas distribution business is highly seasonal as daily market demand for natural gas fluctuates with changes in