TORONTO, ONTARIO--(Marketwire - Sept. 24, 2007) - 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 Final 2007 rates and its quarterly natural gas commodity adjustment.
For typical residential customers(1) who buy their gas supply from Enbridge Gas Distribution, the changes will result in a decrease of about $114 annually, excluding the Gas Cost Adjustment and two Rate Adjustments.
Residential customers who purchase their natural gas from a marketer will see the bill increase by about $2 annually, excluding the Gas Cost Adjustment and the two Rate Adjustments. The Gas Supply Charge for these customers will depend on their contract with their marketer.
"Natural gas prices came down over the summer and are lower now than the same time last year," said Glenn Beaumont, Vice President, Planning & Opportunity Development, Enbridge Gas Distribution. "Natural gas remains the best energy source for our customers. Our residential customers save about $1,400 a year by using natural gas instead of electricity for home and water heating."(2)
Effective October 1, 2007 customers will see the following changes to their bill:
- The Gas Supply Charge will decrease to 29.1 cents/m3 from 32.9 cents/m3 (about $116 annually).
- An increase in the Customer Charge from $11.88 to $11.95 per month (less than $1 per year). The Customer Charge helps cover costs for emergency services, meter reading and customer services which are incurred regardless of the amount of natural gas a customer uses.
- An increase in the Delivery Charge, which includes variable costs such as transporting natural gas to Ontario and additional operating costs not recovered through the Customer Charge, by about $1 annually due to higher transportation and operating costs.
- For customers who buy their natural gas supply from Enbridge Gas Distribution, the Gas Cost Adjustment refund will decrease to 3.1 cents/m3 from 6.6 cents/m3 between October 1, 2007 and March 31, 2008. The refund amounts to about $72 during the next six months. This 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.
- A Rate Adjustment surcharge for the period October 1, 2007 through December 31, 2007. This surcharge substitutes for a one-time back adjustment for the period January 1, 2007 to September 30, 2007 and reflects the OEB's Final Decision on delivery rates for that period. The surcharge will amount to about $5 for the next three months.
- A One-Time Rate Adjustment for natural gas used from January 1, 2006 to December 31, 2006, which is the result of a difference between the actual costs incurred and the amount customers paid over this period. The adjustment will amount to about an $8 surcharge for customers who purchase natural gas from Enbridge Gas Distribution and a $16 credit for customers who purchase natural gas from a marketer. A One-Time Rate Adjustment is typically applied once the previous year's actual results are available. This ensures that the actual costs Enbridge incurs to provide service is the same amount that customers were charged for that period.
Enbridge Gas Distribution delivers natural gas to about 1.8 million customers in Ontario communities including Toronto, Ottawa, Barrie and Niagara Falls. Enbridge Gas Distribution is a leader in delivering energy efficiency programs. For more information visit www.enbridge.com/gas.
Please see the attached backgrounder for more information about Enbridge Gas Distribution prices: http://www.ccnmatthews.com/docs/924ENB_Backgrounder.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 rates in effect as of October 1, 2007. Electricity rates based on Toronto Hydro rates. Costs have been calculated for the equivalent energy consumed and include all service, delivery and energy charges. GST is not included.
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