Enbridge pitches major discount for homeowners

Enbridge Gas New Brunswick is proposing major distribution discounts to homeowners in its latest rate application, trying to regain its pricing advantage over electric baseboard in the province.

Gilles Volp, the general manager of Enbridge, outlined company plans to create an exclusive residential class and lower distribution rates for homeowners by 51 per cent to $4.85 per gigajoule during hearings on Wednesday. (A gigajoule is equivalent to about 26 litres of heating oil.)

The reduction is meant to offset Enbridge's current price for natural gas, which at $15.72/gj isthe highest in the company's 11-year history in New Brunswick.

The company's combined charges are supposed to stay low enough so that heating with gas is substantially cheaper than oil or electricity.

"This allows for a target annual 20 per cent savings against electricity for the typical residential customer," said Volp of the plan to slash the distribution rate.

However, the reorganization will strand a number of small businesses that used to get residential rates, such as pizza parlours and convenience stores, who now will be forced into a new commercial class with higher rates.

Enbridge seeks changes

Enbridge continues to operate the province's natural gas distribution system but Volp made it clear the company remains unhappy about its treatment in New Brunswick.

Enbridge built the system under a 20-year agreement that expires in 2019, but the project became so expensive the Alward government stepped into to prevent the company from charging customers the full cost of what it constructed.

Enbridge has launched two massive lawsuits against the province for that move, a $650-million claim for breach of contract and a $176-million claim to recover money piled up in a deferral account the province has prevented Enbridge from recovering from customers, as originally agreed to.

Those lawsuits are still active but Volp said he would like to see Premier Brian Gallants government act to undo the Alward government initiatives.

"There's a number of significant changes that were made by the [Alward] government that really put this public utility at risk," Volp told CBC News during a break in the rate hearing on Wednesday

"We hope that the current government, the new government, takes a look at that and for the public good makes some changes."

Liberals took no position on the Enbridge issue in their election platform.

However, Len Hoyt,Enbridge's long-time lead attorney in New Brunswick, was picked by Gallant to head his transition team following September's provincial election.

Hoyt has finished that assignment and was back representing Enbridge at the EUB on Wednesday.