Local Economic Development

We play a significant role in local economic development by providing access to natural gas that supplies vital energy needed for growth. We deliver natural gas to communities in western Canada and in major regions of the United States, while our distribution business serves over 1.3 million customers in more than 400 communities in Ontario. We also contribute to local economic health through the jobs we provide, the goods and services we purchase, and the taxes we pay.

As an employer, we also have a positive impact that flows through the economies where we operate. During 2009, we paid $782 million in employee wages and benefits and in a tough economy we were able to grow our workforce with no layoffs. Our financial impact on local communities has been significant. We paid $870 million in taxes to local, state, provincial and federal governments, and purchased $60 million of goods and services from our diverse suppliers.

We are long-term members of communities where we work and live. For example, Spectra Energy and our predecessors have operated and provided jobs in Northeast British Columbia for more than 50 years. We have several second-generation employees and at least one third-generation employee in Fort Nelson. We expect to be part of the community for the next generation and beyond as the area’s unconventional natural gas reserves are developed. Our multi-phased infrastructure project in Fort Nelson will support increased natural gas production and contribute to continued regional economic growth.

Within its service area, Union Gas provides demand-side management programs that help businesses improve their bottom lines and their ability to compete. The impact in some cases has been significant:

• For Labatt Breweries of Canada, demand-side management helped its London, Ontario, brewery save an estimated 550,000 cubic meters of natural gas in 15 months through low- or no-cost measures, contributing to the brewery’s long-term viability.
• GreenField Ethanol, in Chatham, Ontario, was seeking production efficiencies in the face of tight margins and increased competition. Union Gas helped the operation save almost 24 million cubic meters of natural gas and reduce its operating costs through energy-saving retrofits.
• ArcelorMittal Dofasco, a steel producer in Hamilton, Ontario, used a heat recovery system to reduce the natural gas consumption in their central shipping facility by 44 percent. Union Gas also provided $70,000 in EnerSmart incentives for the project.

When we purchase goods and services, we invite local contractors and suppliers to bid on projects. We place a priority on building relationships with diverse vendors—small, minority, and women-owned enterprises—that provide quality, competitively priced goods and services. In 2009 we purchased $60 million of goods and services from our diverse suppliers. We also work to expand the capacity of such firms through programs such as SAFE2, our contractor safety program that includes analysis of the safety program elements of our service providers. In some cases we provide mentorship to help local vendors meet Spectra Energy contractor qualifications.