TORONTO, ONTARIO--(Marketwire - May 18, 2010) - Enbridge Gas Distribution Inc. (TSX:ENB) ("EGD") today received the Ontario Energy Board's (the "Board's") decision in connection with an outstanding issue from its 2010 rate case. Today's Board decision affects the return on equity applicable to the calculation of earnings sharing with customers during the term of EGD's incentive regulation plan.
In 2009, the Board established a new benchmark return on equity and revised the annual adjustment formula for establishing the return on equity for all Ontario utilities. In today's decision, the Board determined that EGD will not be permitted to apply the Board's new benchmark return on equity to the calculation of earnings sharing with customers during the term of its current incentive regulation plan.
Earnings sharing will continue to be determined on the basis of the Board-approved return on equity formula that existed at the time the current incentive regulation agreement with customers was reached in 2008. During the current incentive regulation plan, if EGD earns more than 100 basis points above the Board-approved return on equity formula in any year, half of those earnings are returned to customers.
For the purposes of rate setting, EGD's return on equity remains fixed during the term of the incentive regulation plan and is not affected by today's board decision.
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.
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Enbridge believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, weather, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in our Canadian securities filings and American SEC filings. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
For more information please contact:Enbridge Gas Distribution Inc.
Enbridge Gas Distribution Inc.