Enbridge Gas Distribution Adjusts Prices
TORONTO, ONTARIO--(Marketwire - Sept. 25, 2008) - Enbridge Gas Distribution, (TSX:ENB) (NYSE:ENB) a regulated utility, announced today that it has received approval from the Ontario Energy Board (OEB) for its October 1, 2008 rates. The changes are due to a decrease in North American natural gas prices and higher tolls to transport natural gas from western Canada to Ontario.
For typical residential customers(1) who buy their gas supply from Enbridge Gas Distribution, the changes will result in a decrease of about $157 annually, excluding the Gas Cost Adjustment Charge.
Residential customers who purchase their natural gas from a marketer will see their bill increase by about $4 annually due to increased transportation costs. The Gas Supply Charge for these customers will depend on their contract with their marketers.
The Gas Supply Charge has decreased to about 33.8 cents per cubic metre ( cents/m3) from 39.0 cents/m3. Enbridge Gas Distribution does not earn a profit on the price of natural gas. Customers who purchase their gas supply from Enbridge Gas Distribution pay the same price that the Company pays to purchase the natural gas in the North American market. Market prices are reviewed every three months and, if prices have gone up or down, Enbridge applies to the OEB for an adjustment to its prices to reflect the changes.
A Gas Cost Adjustment Charge of 1.7 cents/m3 will be in effect from October 1, 2008 to March 31, 2009. This results in a charge of about $39 over the next six months for typical residential customers who buy their natural gas from Enbridge Gas Distribution.
Transportation and gas supply costs are passed through to customers without any mark-up. Enbridge Gas Distribution earns an OEB-approved regulated rate of return, or profit, on the distribution of natural gas.
Customers are encouraged to visit the online Winter Information Centre at www.enbridgegas.com/winterinfo for information on managing their energy costs this fall and winter. Customers can sign up for the Budget Billing Plan; learn about Enbridge's support of low-income households through Winter Warmth and other programs; and find energy tips, coupons and rebates that can help reduce energy use and save money.
Natural gas remains the most economical choice for home and water heating in Ontario. Customers using natural gas for home and water heating still save more than $750 a year compared to using electricity and more than $2,000 compared to using 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. As a distributor of energy, Enbridge owns and operates distribution services in Ontario, which distributes natural gas to about 1.9 million customers in Ontario, New York State, New Brunswick and southwestern Quebec.
Please see the attached backgrounder for more information about Enbridge Gas Distribution prices at: http://media3.marketwire.com/docs/925enb_fact.pdf.
(1) A typical residential customer uses 3,064 cubic metres of natural gas a year for home and water heating.
(2) Natural gas prices based on Enbridge Gas Distribution's October 2008 Rate Adjustment. Electricity prices based on Toronto Hydro rates that went into effect August 2008 and are approved by the Ontario Energy Board. Oil prices are based on rates as of July 2008. The calculations are done on an energy equivalent basis. Estimates do not include taxes or any rental or financing costs.
Lisa McCarney-Warus
(416) 495-5662
Email: lisa.mccarney@enbridge.com
For typical residential customers(1) who buy their gas supply from Enbridge Gas Distribution, the changes will result in a decrease of about $157 annually, excluding the Gas Cost Adjustment Charge.
Residential customers who purchase their natural gas from a marketer will see their bill increase by about $4 annually due to increased transportation costs. The Gas Supply Charge for these customers will depend on their contract with their marketers.
The Gas Supply Charge has decreased to about 33.8 cents per cubic metre ( cents/m3) from 39.0 cents/m3. Enbridge Gas Distribution does not earn a profit on the price of natural gas. Customers who purchase their gas supply from Enbridge Gas Distribution pay the same price that the Company pays to purchase the natural gas in the North American market. Market prices are reviewed every three months and, if prices have gone up or down, Enbridge applies to the OEB for an adjustment to its prices to reflect the changes.
A Gas Cost Adjustment Charge of 1.7 cents/m3 will be in effect from October 1, 2008 to March 31, 2009. This results in a charge of about $39 over the next six months for typical residential customers who buy their natural gas from Enbridge Gas Distribution.
Transportation and gas supply costs are passed through to customers without any mark-up. Enbridge Gas Distribution earns an OEB-approved regulated rate of return, or profit, on the distribution of natural gas.
Customers are encouraged to visit the online Winter Information Centre at www.enbridgegas.com/winterinfo for information on managing their energy costs this fall and winter. Customers can sign up for the Budget Billing Plan; learn about Enbridge's support of low-income households through Winter Warmth and other programs; and find energy tips, coupons and rebates that can help reduce energy use and save money.
Natural gas remains the most economical choice for home and water heating in Ontario. Customers using natural gas for home and water heating still save more than $750 a year compared to using electricity and more than $2,000 compared to using 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. As a distributor of energy, Enbridge owns and operates distribution services in Ontario, which distributes natural gas to about 1.9 million customers in Ontario, New York State, New Brunswick and southwestern Quebec.
Please see the attached backgrounder for more information about Enbridge Gas Distribution prices at: http://media3.marketwire.com/docs/925enb_fact.pdf.
(1) A typical residential customer uses 3,064 cubic metres of natural gas a year for home and water heating.
(2) Natural gas prices based on Enbridge Gas Distribution's October 2008 Rate Adjustment. Electricity prices based on Toronto Hydro rates that went into effect August 2008 and are approved by the Ontario Energy Board. Oil prices are based on rates as of July 2008. 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 DistributionLisa McCarney-Warus
(416) 495-5662
Email: lisa.mccarney@enbridge.com
