Enbridge Gas Distribution Adjusts Prices
TORONTO, ONTARIO--(Marketwire - March 19, 2008) - Enbridge Gas Distribution (TSX:ENB) (NYSE:ENB), a regulated utility, announced today that it has received approval from the Ontario Energy Board for its April 1, 2008 rates.
For typical residential customers (1) who buy their natural gas supply from Enbridge Gas Distribution, the changes will result in an increase of about $119 annually, excluding the Gas Cost Adjustment refund. This is based on an increase to the Gas Supply Charge and an increase to the Delivery Charge.
For typical residential customers who buy their natural gas from a marketer, the change in the Delivery Charge will result in a $9 annual increase. The price they pay for the Gas Supply Charge is based on their contract with their marketer.
"In large part, the price change reflects an increased demand for natural gas as well as higher prices for other energy sources, such as oil, this winter," said Glenn Beaumont, Vice President, Enbridge Gas Distribution.
Beaumont adds that, despite the price change, natural gas remains the most economical choice for home and water heating. Over the past five years, natural gas has been 40 per cent less expensive than electricity and 31 per cent less expensive than oil.(2)
Effective April 1, 2008 customers will see the following changes to their bill:
Monthly Charges
- The Gas Supply Charge for customers who buy gas from the utility will increase by about $110 annually. The new rate is 30.3 cents per cubic metre ( cents/m3). The previous rate was 26.7 cents/m3.
- An increase in the Delivery Charge for all customers by about $9 annually due to higher costs to transport natural gas to Ontario.
Additional Items
- The Gas Cost Adjustment refund will increase from about 2.3 cents/m3 to about 4 cents/m3 from April 1, 2008 to December 31, 2008. This results in a refund of about $65 during the next nine months for typical residential customers who buy their gas supply from Enbridge Gas Distribution.(1) The Gas Cost Adjustment reflects the difference between the actual natural gas costs incurred by the utility and the amount collected from customers through the Gas Supply Charge.
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 more than 1.8 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: http://media3.marketwire.com/docs/319enb.pdf.
(1) A typical residential customer uses 3,064 cubic metres of natural gas a year for home and water heating.
(2) Natural gas and electricity prices based on Ontario Energy Board approved rates that will be in effect as of April 1, 2008. Electricity rates are based on Toronto Hydro rates. Estimates do not include taxes or any rental or financing costs. The actual effect on a customer's bill will depend on the amount of natural gas used.
David Rosenbloom
(416) 495-5272
Email: david.rosenbloom@enbridge.com
For typical residential customers (1) who buy their natural gas supply from Enbridge Gas Distribution, the changes will result in an increase of about $119 annually, excluding the Gas Cost Adjustment refund. This is based on an increase to the Gas Supply Charge and an increase to the Delivery Charge.
For typical residential customers who buy their natural gas from a marketer, the change in the Delivery Charge will result in a $9 annual increase. The price they pay for the Gas Supply Charge is based on their contract with their marketer.
"In large part, the price change reflects an increased demand for natural gas as well as higher prices for other energy sources, such as oil, this winter," said Glenn Beaumont, Vice President, Enbridge Gas Distribution.
Beaumont adds that, despite the price change, natural gas remains the most economical choice for home and water heating. Over the past five years, natural gas has been 40 per cent less expensive than electricity and 31 per cent less expensive than oil.(2)
Effective April 1, 2008 customers will see the following changes to their bill:
Monthly Charges
- The Gas Supply Charge for customers who buy gas from the utility will increase by about $110 annually. The new rate is 30.3 cents per cubic metre ( cents/m3). The previous rate was 26.7 cents/m3.
- An increase in the Delivery Charge for all customers by about $9 annually due to higher costs to transport natural gas to Ontario.
Additional Items
- The Gas Cost Adjustment refund will increase from about 2.3 cents/m3 to about 4 cents/m3 from April 1, 2008 to December 31, 2008. This results in a refund of about $65 during the next nine months for typical residential customers who buy their gas supply from Enbridge Gas Distribution.(1) The Gas Cost Adjustment reflects the difference between the actual natural gas costs incurred by the utility and the amount collected from customers through the Gas Supply Charge.
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 more than 1.8 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: http://media3.marketwire.com/docs/319enb.pdf.
(1) A typical residential customer uses 3,064 cubic metres of natural gas a year for home and water heating.
(2) Natural gas and electricity prices based on Ontario Energy Board approved rates that will be in effect as of April 1, 2008. Electricity rates are based on Toronto Hydro rates. Estimates do not include taxes or any rental or financing costs. The actual effect on a customer's bill will depend on the amount of natural gas used.
For more information please contact:
Enbridge Gas DistributionDavid Rosenbloom
(416) 495-5272
Email: david.rosenbloom@enbridge.com
