TORONTO, ONTARIO--(Marketwire - June 28, 2010) - 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 July 1, 2010.
For typical residential customers (1) who buy their gas supply and transportation from Enbridge Gas Distribution, the changes will result in a decrease of approximately $148 annually, including the applicable Cost Adjustment Refund. 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 $4 annually, including the applicable Cost Adjustment Charge. This is primarily due to increased costs for transporting natural gas from Western Canada and the United States.
Effective July 1, 2010, Enbridge Gas Distribution's Gas Supply Charge will change from 21.16 cents per cubic metre (cents/m³) to 17.30 cents/m³. The Cost Adjustment includes a refund on Gas Supply of 1.09 cents/m³ effective from July 1, 2010 to June 30, 2011. Combined, these will result in an effective Gas Supply Charge of 16.21 cents/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 remains the most economical choice for home and water heating in Ontario. Over the past five years, natural gas has been on average 45 per cent less expensive than electricity and 44 per cent less expensive than oil. (2)
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.
(1) A typical residential customer uses 3,064 cubic metres of natural gas a year for home and water heating.
(2) Based on a five-year rolling average from August 2005 to July 2010. Natural gas prices are based on Enbridge Gas Distribution's prices up to and including July 2010 rates. Electricity prices are based on Toronto Hydro's Ontario Energy Board approved rates up to and including current rates, approved in May 2010. Oil prices are based on publicly posted Statistics Canada historical rates up to and including rates available as of April 2010. The calculations are done on an energy equivalent basis. Estimates do not include taxes or any rental or financing costs.
For more information please contact:Enbridge Gas Distribution Inc.