TORONTO, ONTARIO--(Marketwire - Dec. 21, 2011) - Enbridge Gas Distribution Inc. (TSX:ENB) (NYSE:ENB), a regulated natural gas distribution utility, announced today that it has received approval from the Ontario Energy Board (OEB) for new rates effective January 1, 2012.
For typical residential customers* who buy their gas supply and transportation from Enbridge Gas Distribution, the changes will result in an overall decrease of approximately $7 annually. This is primarily due to decreased commodity costs.
Typical residential customers, who purchase their gas supply from a marketer and obtain transportation services from Enbridge Gas Distribution, will see an increase of about $26 annually. This is primarily due to increased costs for transporting natural gas from Western Canada and the United States to Ontario.
The total effect on a customer's bill depends on how much gas a customer uses.
Effective January 1, 2012, Enbridge Gas Distribution's Gas Supply Charge will decrease from 13.69 cents per cubic metre (¢/m3) to 11.85 ¢/m3. The Cost Adjustment includes a refund on Gas Supply of 0.70 ¢/m3. Combined, these result in an effective Gas Supply Charge of 11.15 ¢/m3.
Enbridge Gas Distribution does not earn a profit on the price of natural gas. Gas supply costs are passed through to customers without any mark-up. Any difference between forecast costs and actual prices is either collected from or returned to customers through a Cost Adjustment.
Natural gas is the most economical choice for home and water heating in Ontario. Over the past five years, natural gas has been on average about 53 per cent less expensive than electricity and about 55 per cent less expensive than oil.**
Enbridge Gas Distribution has a 160-year history and is Canada's largest natural gas distribution company. Enbridge Gas Distribution is owned by Enbridge Inc., a Canadian-based leader in energy transportation and distribution, and a Top 100 Canadian Employer for 2010. Enbridge Gas Distribution and its affiliates distribute natural gas to about 1.9 million customers in Ontario, New York State, New Brunswick and southwestern Quebec. For more information, go to www.enbridgegas.com.
Please see the attached backgrounder for more information about Enbridge Gas Distribution's prices.
* A typical residential customer uses 3,064 cubic metres of natural gas a year for home and water heating.
** Based on a five-year rolling average from February 2007 to January 2012. Natural gas prices are based on Enbridge Gas Distribution's prices up to and including January 2012 rates. Electricity prices are based on Toronto Hydro's Ontario Energy Board approved rates up to and including current rates, approved in November 2011. Oil prices are based on publicly posted Statistics Canada historical rates up to and including rates available as of November 2011. The calculations are done on an energy equivalent basis. Estimates do not include taxes, appliances or any rental or financing costs.
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