Enbridge Gas is set to appear before the Ontario Energy Board regarding a hearing to renew an agreement that would let the company keep building pipelines on public land for free over the next 20 years.
According to an Enbridge Gas representative, such agreements “are in the public interest” and “work for communities, customers and the province as a whole,” as reported by The Narwhal.
This hearing follows Waterloo Region’s pushback against renewing its contract with Enbridge Gas, referred to as a model franchise agreement, last November. Renewing would have meant committing to providing free land to the natural gas company, which primarily uses methane-a powerful greenhouse gas that contributes to climate change. These agreements also relieve Enbridge Gas from having to deal with outdated pipelines, placing that burden on municipalities already facing budget constraints.
The decision by Waterloo Region not to re-sign comes after Guelph made a similar choice in late 2024, which Enbridge Gas plans to challenge in a hearing set for 2026.
“We respect the [Ontario Energy Board’s] jurisdiction and will not comment on the details of the Waterloo Region application,” said Chloe Mills, an Enbridge Gas spokesperson, in an email response sent to The Narwhal on December 24.
Mills added that as a regulated utility, participation is mandatory. “This is a long-standing legislated process that ensures transparency and fairness – it’s not about one party taking another to the [board], but about following statutory requirements,” she explained.
Ontario law requires municipalities to form agreements with natural gas providers. Fossil fuel giant Enbridge Gas holds these agreements with over 340 municipalities; however, two communities are now refusing renewal after being in place for 20 years. Photo: Christopher Katsarov Luna / The Narwhal
Under Ontario law, municipalities must enter into arrangements with natural gas companies so they can build pipelines beneath roads and adjacent lands without charge. Enbridge Gas has established these contracts with more than 340 municipalities; their terms are negotiated through an energy board tasked with upholding provincial regulations.
The Ontario Energy Board has scheduled a comprehensive review of these agreements for spring 2026-the first review since 1999. This will occur alongside Enbridge’s efforts for both Guelph and now Waterloo Region’s contract renewals. The board outlined its request for input regarding the region’s refusal in a letter sent to the company on December 19, which was confirmed by a spokesperson.
“The Ontario Energy Board confirms that Enbridge [Gas] has filed an application for the renewal of a municipal franchise agreement with the Regional Municipality of Waterloo,” Tom Miller from the board stated.
A representative from Waterloo Region mentioned they cannot provide comments on this matter as “the issue is ongoing.”
Elected officials from both Waterloo Region and Guelph have previously expressed concerns about these agreements misaligning with goals aimed at reducing emissions quickly while scientists advocate shifting away from fossil fuels like gas due to their impact on global warming.
In November 2021, photojournalist Amber Bracken was arrested by the RCMP while working on assignment for The Narwhal. Consequently, we initiated legal action defending press freedom. Currently, our five-week trial is underway in Vancouver.
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City councils in Ottawa and Toronto have echoed similar worries towards Ontario’s government. Representatives have voiced that these contracts serve as subsidies benefiting fossil fuel companies unnecessarily.
Enbridge Gas disputes these claims as “simply not true.”
The Narwhal reached out to inquire about these contracts four business days before publishing our article on December 17 concerning Waterloo Region’s decision against renewal. Following publication, Mills responded via email indicating that according to her understanding of what was determined by the Ontario Energy Board regarding agreements “exist to defend the interests of our customers.”
“In the Region of Waterloo alone, we serve over 105,000 customers – including homes, businesses, schools and hospitals that rely on natural gas every day,” Mills noted. “The [agreements] ensure that communities continue to have ready, affordable access to the energy they rely on every day.”
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Ontario law requires municipalities to form agreements with natural gas providers. Fossil fuel giant Enbridge Gas holds these agreements with over 340 municipalities; however, two communities are now refusing renewal after being in place for 20 years. Photo: Christopher Katsarov Luna / The Narwhal
Under Ontario law, municipalities must enter into arrangements with natural gas companies so they can build pipelines beneath roads and adjacent lands without charge. Enbridge Gas has established these contracts with more than 340 municipalities; their terms are negotiated through an energy board tasked with upholding provincial regulations.
The Ontario Energy Board has scheduled a comprehensive review of these agreements for spring 2026-the first review since 1999. This will occur alongside Enbridge’s efforts for both Guelph and now Waterloo Region’s contract renewals. The board outlined its request for input regarding the region’s refusal in a letter sent to the company on December 19, which was confirmed by a spokesperson.
“The Ontario Energy Board confirms that Enbridge [Gas] has filed an application for the renewal of a municipal franchise agreement with the Regional Municipality of Waterloo,” Tom Miller from the board stated.
A representative from Waterloo Region mentioned they cannot provide comments on this matter as “the issue is ongoing.”
Elected officials from both Waterloo Region and Guelph have previously expressed concerns about these agreements misaligning with goals aimed at reducing emissions quickly while scientists advocate shifting away from fossil fuels like gas due to their impact on global warming.
In November 2021, photojournalist Amber Bracken was arrested by the RCMP while working on assignment for The Narwhal. Consequently, we initiated legal action defending press freedom. Currently, our five-week trial is underway in Vancouver.
Learn moreEnbridge Gas Claims Roadway Fees ‘Would Just Be Passed On To Customers’
Mills emphasized in her statement dated December 17 that franchise agreements create consistent standards protecting both customers and municipalities while laying out clear rules around building maintenance and upgrades related infrastructure needs. This structure maintains safety within projects while keeping costs predictable,” she elaborated further. “This standardized approach guarantees all parties adhere consistently preventing unique local deals which could inflate expenses for families or businesses.” However recently many Ontario municipalities began implementing localized strategies geared towards achieving net-zero emissions by 2050; initiatives include adopting green building norms prioritizing electric heating rather than natural gas connections among various cities along with constructing multi-use roadways incorporating bike paths or pedestrian trails respectively elsewhere too! Cities are also aiming towards installing additional fiber optic cabling facilitating fast internet access upgrading stormwater systems capable handling floodwaters effectively burying transmission lines shielding them against extreme weather events improving transit options available overall!Source link
