DECISION AND ORDER
eb-2024-0280
ENBRIDGE GAS INC.
Application for Approval of a Franchise Agreement with the County of Simcoe
BEFORE: David Sword, Presiding Commissioner Fred Cass, Commissioner Allison Duff, Commissioner
August 7, 2025
TABLE OF CONTENTS
1.............. OVERVIEW... 1
2.............. CONTEXT AND PROCESS.. 3
3.............. DECISION on the application.. 5
4.............. ORDER.. 12
SCHEDULE A
SCHEDULE B
1 OVERVIEW
OVERVIEW
1This is the Decision and Order of the Ontario Energy Board (OEB) regarding an application filed by Enbridge Gas Inc. (Enbridge Gas) for renewal of the term of its municipal franchise with the County of Simcoe (County). Enbridge Gas has two existing franchise agreements in place with the County that it seeks to replace with a single franchise agreement under section 10 of the Municipal Franchises Act.
2The County is a municipal corporation incorporated under the laws of the Province of Ontario. It is an upper-tier regional municipality comprised of the Township of Adjala-Tosorontio, the Town of Bradford West Gwillimbury, the Town of Collingwood, the Township of Clearview, the Township of Essa, the Town of Innisfil, the Town of Midland, the Town of New Tecumseth, the Township of Oro-Medonte, the Town of Penetanguishene, the Township of Ramara, the Township of Severn, the Township of Springwater, the Township of Tay, the Township of Tiny and the Town of Wasaga Beach. The municipal franchise agreement with the former Enbridge Gas Distribution Inc. was effective August 26, 2003, and expired on August 26, 2023. The municipal franchise agreement with the former Union Gas Limited took effect February 28, 2008 and does not expire until February 28, 2028. Enbridge Gas sought to replace both agreements with a single agreement at the expiry of the earlier agreement based on the terms of the OEB’s approved Model Franchise Agreement (Model Agreement), for a duration of 20 years1.
3The County intervened in the proceeding and opposed the renewal application, submitting that such renewal should not be granted unless paragraphs 11, 12, 12(a) and 15(b) of the Model Agreement were amended.
4The OEB denies the application to replace the two franchise agreements with the County with a single franchise agreement based on the terms and conditions of the Model Franchise Agreement. It also denies the request to renew the expired agreement for a 20-year term. The OEB approves an extension of the expired agreement to February 28, 2028, thereby aligning it with the former Union Gas Limited agreement.
2 CONTEXT AND PROCESS
CONTEXT AND PROCESS
5Enbridge Gas is a corporation incorporated under the laws of the Province of Ontario, with its head office in the City of Toronto. The County is a municipal corporation incorporated under the laws of the Province of Ontario.
6Enbridge Gas filed an application with the OEB on September 24, 2024, initially under sections 9 and 10 of the Municipal Franchises Act for:
- An Order pursuant to s.10 approving the terms and conditions upon which, and the period for which, the County is, by by-law, to grant Enbridge Gas the right to construct and operate works for the distribution, transmission and storage of natural gas and the right to extend and add to the works.
- An Order pursuant to s.9(4) directing and declaring that the assent of the municipal electors of the County is not necessary for the proposed franchise agreement by-law under the circumstances.
7During the proceeding, Enbridge Gas withdrew its request for relief under section 9(4), given that an order of the OEB granted under section 10(2) of the Municipal Franchises Act is deemed to be a valid by-law of the municipality assented to by the municipal electors.2
8Section 10 of the Municipal Franchises Act operates where a franchise agreement reaches the end of its term and the parties to the agreement have been unable to agree on the terms and conditions for renewing or extending it. Subsections 10(1) and 10(2) of the Municipal Franchises Act provide the following pertaining to the OEB’s legislative powers:
10(1) Where the term of a right referred to in clause 6 (1) (a), (b) or (c) that is related to gas or of a right to operate works for the distribution of gas has expired or will expire within one year, either the municipality or the party having the right may apply to the Ontario Energy Board for an order for a renewal of or an extension of the term of the right.
10(2) The Ontario Energy Board has and may exercise jurisdiction and power necessary for the purposes of this section and, if public convenience and necessity appear to require it, may make an order renewing or extending the term of the right for such period of time and upon such terms and conditions as may be prescribed by the Board, or if public convenience and necessity do not appear to require a renewal or extension of the term of the right, may make an order refusing a renewal or extension of the right.
9A Notice of Hearing was issued on October 18, 2024.
10Procedural Order No. 1 was issued on November 27, 2024. The OEB approved the County as an intervenor and set the dates for the steps in the proceeding. OEB staff filed interrogatories on December 18, 2024 and Enbridge Gas filed its responses on January 16, 2025.
11OEB staff and the County filed written submissions on February 6, 2025 and Enbridge Gas filed a reply submission on February 21, 2025.
3 DECISION on the application
DECISION on the application
12Enbridge Gas submitted that it has been providing gas distribution services within the lower-tier municipalities in the County since 1956 and that its franchise should be renewed based on the standard terms in the Model Agreement. Enbridge Gas also