BELWOOD – Centre Wellington is looking to expand utility options for residents in Belwood through Ontario’s Natural Gas Expansion Support Program.
A report by CAO Andy Goldie recommends council formally support an application by Enbridge Gas Inc. for a grant to expand the township’s natural gas system.
The report says a majority of properties in Belwood are serviced by propane or electricity. Natural gas access can provide residents who have higher-emitting fuels with a lower carbon energy source that help reduce greenhouse gas emissions. Based off Enbridge's analysis, the amount of properties in Belwood can support a financial business case to meet the criteria for government funding.
The natural gas distributor, in this case Enbridge, must be the applicant for funding and the township must support the application through a resolution and financial support.
Municipalities can contribute through granting back of incremental increase on taxes for a minimum period of 10 years.
The report says Enbridge would pay the yearly taxes and the township would grant back $10,000 per year for 10 years. The project is revenue neutral to the township for 10 years but after that period, the township will get the revenue from the incremental tax increase.
If the project is approved, residents who sign up for the project will have a system expansion surcharge added to their bills for a defined term of 40 years. Switching to natural gas will also result in savings for residents even with the surcharge.
The report shows those who use electricity for space and water heating will save 37 per cent and those on propane save 25 per cent annually.
If the funding application is approved by the province, Enbridge and the township would further refine project details through an agreement outlining the project conditions, funding and timing.
The report says work on this project could start as early as 2021 or 2022.
