Significant Win for the Propane Industry

The Canadian Propane Association applauds the Ontario Energy Board’s (OEB) decision to ensure that new customers – and not existing ones – pay the cost of natural gas expansion through a rate structure that reflects that cost.

The CPA participated in the OEB’s process that began in December 2015 to establish principles to guide the recovery of costs associated with expanding natural gas services.

The OEB decision, released Thursday, November 17, ensures that the true cost of the energy supply is reflected in pricing. It furthermore helps to ensure that propane businesses can continue to employ local workers across Ontario’s communities. Propane businesses could have been severely impacted if subsidies were provided to trucked LNG.

The CPA had argued that if propane delivery trucks can operate without a subsidy, then LNG delivery trucks should also be able to operate without a subsidy. The OEB agreed with the CPA, stating in its decision: "The assessment of the economics of the use of natural gas in a community should include the discrete upstream costs incurred to provide for the delivery of the gas. This holds true whether the costs pertain to pipes, trucks or liquefaction processes." 

In its news release regarding the decision, the CPA encouraged Ontario energy consumers, municipalities and First Nation communities who are paying high electricity costs to contact their local propane retailer to discuss ways they can help reduce their energy costs.

The CPA works hard on members’ behalf to represent the interests of the propane industry. This OEB decision is a significant win for CPA members. For more information, please visit the OEB website.