Ontario Energy Board Approves Enbridge Gas Distribution's Multi-Year Incentive Rate Setting Plan
TORONTO, ONTARIO--(Marketwire - Feb. 11, 2008) - The Ontario Energy Board (OEB) today approved a settlement agreement reached between Enbridge Gas Distribution Inc. (Enbridge Gas Distribution or the Company) (TSX:ENB) (NYSE:ENB) and ratepayer representatives in connection with the Company's application for an incentive regulation rate setting mechanism.
The agreement provides the methodology for establishing distribution rates for a five- year period (2008-2012 inclusive) by means of a formula. As a result, extensive annual public hearings to establish rates will not be required.
In giving its approval, the OEB recognized that the agreement will put downward pressure on rates by encouraging new levels of efficiency within the utility. The plan is designed to share the benefits of new efficiencies with customers. The agreement also provides the regulatory stability needed for anticipated investment in Enbridge Gas Distribution's Ontario natural gas distribution system.
Revenues to be recovered through rates will be determined each year by a formula that takes into account a portion of the rate of inflation and the total number of customers served.
The agreement provides an envelope of revenue growth of about three per cent for each of the next five years and rate increases for residential customers of two per cent. However, for 2008 only, revenue growth will be offset by certain one-time adjustments and annual bills are estimated to increase this year by less than half of one per cent for a typical residential customer, excluding the cost of natural gas. Other features include changes to the fixed charge component of rates and a provision for the sharing of earnings with customers if earnings exceed a defined threshold.
A copy of the decision is available at the OEB's website (www.oeb.gov.on.ca).
Enbridge Gas Distribution has been in business for 160 years and is Canada's largest natural gas distribution company. Enbridge Gas Distribution is a wholly-owned subsidiary of Enbridge Inc., a Canadian-based leader in energy transportation and distribution. As a distributor of energy, Enbridge owns and operates distribution utilities that distribute natural gas to more than 1.8 million customers in Ontario, New Brunswick, southwestern Quebec and upper New York State.
Debbie Boukydis
Media
(416) 495-5682
Email: debbie.boukydis@enbridge.com
Website: www.enbridge.com
or
Enbridge Inc.
Anu Phatak
Investment Community
(403) 231-5942
Email: anu.phatak@enbridge.com
Website: www.enbridge.com
The agreement provides the methodology for establishing distribution rates for a five- year period (2008-2012 inclusive) by means of a formula. As a result, extensive annual public hearings to establish rates will not be required.
In giving its approval, the OEB recognized that the agreement will put downward pressure on rates by encouraging new levels of efficiency within the utility. The plan is designed to share the benefits of new efficiencies with customers. The agreement also provides the regulatory stability needed for anticipated investment in Enbridge Gas Distribution's Ontario natural gas distribution system.
Revenues to be recovered through rates will be determined each year by a formula that takes into account a portion of the rate of inflation and the total number of customers served.
The agreement provides an envelope of revenue growth of about three per cent for each of the next five years and rate increases for residential customers of two per cent. However, for 2008 only, revenue growth will be offset by certain one-time adjustments and annual bills are estimated to increase this year by less than half of one per cent for a typical residential customer, excluding the cost of natural gas. Other features include changes to the fixed charge component of rates and a provision for the sharing of earnings with customers if earnings exceed a defined threshold.
A copy of the decision is available at the OEB's website (www.oeb.gov.on.ca).
Enbridge Gas Distribution has been in business for 160 years and is Canada's largest natural gas distribution company. Enbridge Gas Distribution is a wholly-owned subsidiary of Enbridge Inc., a Canadian-based leader in energy transportation and distribution. As a distributor of energy, Enbridge owns and operates distribution utilities that distribute natural gas to more than 1.8 million customers in Ontario, New Brunswick, southwestern Quebec and upper New York State.
For more information please contact:
Enbridge Gas Distribution Inc.Debbie Boukydis
Media
(416) 495-5682
Email: debbie.boukydis@enbridge.com
Website: www.enbridge.com
or
Enbridge Inc.
Anu Phatak
Investment Community
(403) 231-5942
Email: anu.phatak@enbridge.com
Website: www.enbridge.com
