St. Laurent North Denied

The Ontario Energy Board (OEB) denied Enbridge Gas's $123.7-million St. Laurent North pipeline project, citing Ottawa's community electrification plan and reduced future gas demand. This decision highlights a tension between traditional utility business models—which reward infrastructure ownership—and the shift toward net-zero emissions. The case underscores the need for integrated resource planning (IRP) and raises concerns about the risk of stranded assets being passed on to ratepayers as Ontario transitions away from fossil fuels.

• On May 3, 2022, the Ontario Energy Board (OEB) rejected Enbridge Gas's $123.7-million application for the St. Laurent North pipeline replacement project, a move described as nearly unprecedented in the regulator's 62-year history.
• The OEB's denial was influenced by the City of Ottawa's 'Energy Evolution' community electrification plan and the federal government's conversion of the Cliff Street heating and cooling plant to lower-emitting technologies, both of which suggested a reduction in future natural gas demand that Enbridge had not factored into its forecasts.
• The OEB indicated that Enbridge failed to prove the urgency of the replacement and suggested the utility should adopt integrated resource planning (IRP) and collaborate with stakeholders like the City of Ottawa for future projects.
• There is a systemic risk that the current regulatory model, where gas companies' returns are based on the length of pipe owned rather than gas volume, encourages network expansion regardless of demand, potentially leaving ratepayers to pay for stranded assets.
• Enbridge's broader 10-year, $15.3-billion capital plan continues to schedule the St. Laurent North project for 2024-25 and relies on a Guidehouse study that advocates for a 'diversified' scenario where gas heating remains a key role complemented by heat pumps and low-carbon gases.
• The Guidehouse study claims a diversified energy scenario could save ratepayers $181 billion by 2050 by reducing the need for electricity infrastructure to handle peak demand, though this finding is contested by some stakeholders.

APA

Canadian Climate Institute (2023). St. Laurent North Denied. https://climateinstitute.ca/publications/st-laurent-north-denied/

Chicago

Canadian Climate Institute. St. Laurent North Denied. 2023. https://climateinstitute.ca/publications/st-laurent-north-denied/.

Wikipedia

{{cite report |author=Canadian Climate Institute |title=St. Laurent North Denied |date=14 April 2023 |url=https://climateinstitute.ca/publications/st-laurent-north-denied/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{canadianclimateinstitute2023laurent, author = {{Canadian Climate Institute}}, title = {{St. Laurent North Denied}}, institution = {Canadian Climate Institute}, year = {2023}, month = apr, url = {https://climateinstitute.ca/publications/st-laurent-north-denied/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }