ABERFOYLE – Enbridge Gas found a supportive audience at the Puslinch council meeting on Nov. 19 as it explained its plans for natural gas expansion across the province and possibly into the township.
Julie Alexander, senior advisor of municipal and stakeholder engagement with Enbridge, said that in 2019, the province allowed the utility to launch the Natural Gas Expansion Program.
That included six new projects and, in 2021, another 28 projects, where 17,0000 homes and businesses in certain communities were connected to natural gas.
In August, the Ministry of Energy and Mines launched a policy consultation on the future of community natural gas expansion, with many municipalities interested in participating.
“Gas is in 75 per cent of homes” in the province, Alexander said.
Natural gas is transmitted through underground pipelines, so it can only be provided in communities where pipelines exist or are being added.
Natural gas is not available in Puslinch and the municipality expressed an interest in the program and requested the utility to delegate to council.
Alexander said pipelines “tend not to drain municipal resources, and we pay property tax on every kilometre of pipe.”
She added Enbridge is looking at potential expansion into Puslinch but at this time, service is likely only viable around Puslinch Lake, which is near already existing pipelines.
She said Enbridge is anxiously awaiting an announcement from the province to allow a phase 3 series of projects.
The challenge for bringing natural gas to the entire township is economics.
The length of pipe and the density of customers along a pipeline are what makes a project viable or not, she said – the more users, the more economical the project.
Alexander said the terrain in Puslinch is challenging as well, with so many wetlands and woodlands and low density of potential customers along long lengths of road.
For example, Concession 1 in Puslinch would be challenging because of the terrain, she said, while Concession 2 might be an easier route.
Individuals who live along a route would not be required to hook up. Alexander said 65% buy-in makes every project more viable.
Homeowners would have to front some money to connect or pay an ongoing surcharge, so it’s not for everyone.
Mayor James Seeley said Wellington County and the province are pushing heat pumps and electrical heat sources, “but electricity is expensive in rural areas. Natural gas is more affordable,” he said.
Councillor Russel Hurst wondered if getting natural gas to the recently designated employment lands would make those lands more attractive for businesses looking to locate in the area.
“On employment lands, this would be an important filter,” he said.
“That might justify expansion and could bring other residential (customers) online too,” Seeley agreed.
Seeley said he hopes the township and Enbridge could work together because according to him, there is demand for natural gas heating among residents.
There are two funding mechanisms for municipalities: a temporary connection surcharge, where a municipality would provide funding to make the project viable, or a system expansion surcharge.
The latter usually requires funding from other levels of government and homes would pay about $50 a month on top of usage charges.
Each application is assessed on a case-by-case basis.
Individuals can also apply for natural gas. They would require a qualified heating contractor to assess and recommend the right gas connection for their home.
It’s the contractor who files the application.
Seeley floated the idea of the township and Enbridge holding a joint open house for residents, so they could learn about natural gas, the costs of signing up, and the savings of gas over electricity.
He proposed having qualified contractors at the event as well, to help interested homeowners as much as possible.
“If the only thing we can do is provide information, we could at least get it started,” he said.
Council received the delegation’s report for information and directed staff to explore the idea of an open house.
