TORONTO, ONTARIO--(Marketwire - June 19, 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 July 1 rates. The changes are primarily due to an increase in North American natural gas prices and higher tolls to transport natural gas from Western Canada to Ontario. These costs are passed through to customers without any mark-up.
For typical residential customers(1) who buy their gas supply from Enbridge Gas Distribution, the changes will result in an increase of about $300 annually.
Residential customers who purchase their natural gas from a marketer will see the bill increase by about $33 annually. The Gas Supply Charge for these customers will depend on their contract with their marketers.
The Gas Supply Charge has increased to 39.0 cents per cubic metre (cents/m3) from 30.4 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.
The cost of transporting natural gas from western Canada to Ontario has increased. Transportation costs are passed through without a mark-up to customers as part of the Delivery Charge.
Enbridge Gas Distribution earns an OEB-approved regulated rate of return, or profit, on the distribution of natural gas. This is included in the Delivery Charge. The July 1, 2008 rate adjustment does not include any changes to our rate of return.
While prices are going up during the summer when customers use less natural gas, steps taken now can help customers manage their costs this fall and winter. Customers are encouraged to visit www.enbridge.com/gas to: 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 $800 a year compared to using electricity and more than $1,350 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 backgrounder at http://media3.marketwire.com/docs/619enb.pdf for more information about Enbridge Gas Distribution prices.
(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 July 1, 2008 Rate Adjustment. Electricity prices based on Toronto Hydro rates that went into effect May 1, 2008 and are approved by the Ontario Energy Board. Oil prices are based on rates as of May 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 Distribution