TORONTO, ONTARIO--Enbridge Gas Distribution has received approval 
from the Ontario Energy Board to implement a new surcharge for 
all customers effective July 1, 2003. The amount of the surcharge 
will vary depending on whether customers buy their natural gas 
from the utility or a marketer/broker. 

For residential customers who buy their gas supply from a natural 
gas marketer or broker, the surcharge will be 5.0897 cents per 
cubic metre from July 1 to December 31, 2003. For the typical 
residential customer*, the surcharge will amount to a total of 
$58 during this period. The surcharge reflects the difference 
between this past winter's actual costs and the amount recovered 
through the delivery charge for ensuring there was enough supply 
of natural gas in the pipes to meet customers' needs, even on the 
coldest days of the year. 

For residential customers who buy their gas supply from Enbridge 
Gas Distribution, a regulated utility, the surcharge introduced 
in April will be adjusted to 6.7942 cents per cubic metre. It 
will be in place from July 1 to December 31, 2003. For the 
typical residential customer(1), the surcharge will amount to a 
total of $77 during this period. The surcharge includes: 

- the difference between the forecast price and the actual costs 
for natural gas. The cost to purchase gas supply this winter was 
higher than anticipated due to cold weather. This portion only 
applies to customers who buy their natural gas supply from 
Enbridge Gas Distribution; 

- the difference between this past winter's actual costs and the 
amount recovered through the delivery charge for ensuring there 
was enough supply of natural gas in the pipes to meet customers' 
needs, even on the coldest days of the year. 

Managing the volume of natural gas in the distribution system, or 
load balancing, is a service provided by Enbridge Gas 
Distribution. The forecast cost for this service is included as 
part of the delivery charge. If Enbridge Gas Distribution is 
under or over in its forecasts, it collects from or reimburses 
the difference to customers. Enbridge Gas Distribution does not 
earn a profit on this component of the delivery charge. 

The gas supply charge, delivery charge and the customer charge 
have not changed. The current Enbridge Gas Distribution gas 
supply charge is 26.65 cents per cubic metre. 

Natural gas continues to be the most efficient choice for home 
and water heating. Natural gas has been 46 per cent less 
expensive than electricity over the past five years.(2) 

Enbridge Gas Distribution delivers gas to about 1.6 million 
customers in its franchise area. Of those customers, slightly 
more than half buy their gas supply from the utility. The 
utility's remaining customers buy their gas supply directly from 
marketers. The gas supply charge for customers who buy their gas 
supply from natural gas marketers is based on their contracts. 

Please see the attached backgrounder for information about 
Enbridge Gas Distribution charges and gas supply options: 
http://www2.cdn-news.com/database/fax/2000/0630enb.pdf 

(1) Based on a typical residential customer who uses 3,064 cubic 
metres of natural gas a year for home and water heating. 

(2) Based on the annual bill for the typical residential customer 
who buys gas supply from the utility. Updated based on July 1, 
2003 rates. 

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For more information please contact: