TORONTO, ONTARIO--(CCNMatthews - Sept. 27, 2004) - Enbridge Gas 
Distribution, a regulated utility, announced today that it has 
received approval from the Ontario Energy Board to adjust its prices 
effective October 1, 2004.

The impact of the changes will vary based on the amount of gas used 
and whether customers buy their natural gas from the utility or a 
natural gas marketer. In total, the changes will result in a $9 
annual decrease for a typical residential customer(1) who buys 
natural gas from Enbridge Gas Distribution and a $25 decrease for a 
customer who buys natural gas from a marketer.

Gas Supply Charge

The utility's Gas Supply Charge represents the actual cost of the 
natural gas and is passed on to customers without mark-up. Customers 
pay the same price that Enbridge Gas Distribution does for the 
natural gas supply on the competitive market. As a result of an 
increase in market prices, the Gas Supply Charge will increase by 
approximately 1.8 per cent.

The utility's new residential gas supply price will be 28.57 cents 
per cubic metre. The current price is 28.06 cents per cubic metre. 
For the typical residential customer this represents a Gas Supply 
Charge increase of $16 on the total annual bill.

The Gas Supply Charge reflects what the Company expects to pay for 
natural gas supply for the next 12 months. This forecast is reviewed 
quarterly and, if necessary, adjusted up or down. If there is a 
difference between the forecast prices charged to customers and the 
actual amount paid by the Company, the difference is collected from 
or reimbursed to customers.

Customers who buy their natural gas from a marketer will continue to 
pay the price specified in their contract with that marketer.

Customer Charge

The Ontario Energy Board approved an increase in the Customer Charge 
with a corresponding reduction in the variable Delivery Charge. The 
Customer Charge will increase from $10 to $11.25 per month.

The increase in the Customer Charge and decrease in the Delivery 
Charge will reflect a more accurate breakdown of charges. The 
Customer Charge comprises fixed costs, such as meters and the call 
centre, which are incurred regardless of the volume of natural gas a 
customer uses. The Delivery Charge includes variable costs such as 
transporting natural gas from Western Canada and other operating 
costs not recovered through the Customer Charge.

This change does not increase the total amount of money that Enbridge 
Gas Distribution collects from its customer base.

Delivery Charge

The total annual Delivery Charge will decrease by approximately $40 
for the typical residential customer. This includes the decrease due 
to the realignment of costs to the Customer Charge and a decrease in 
the unit delivery costs.

Enbridge Gas Distribution previously had a Delivery Charge that 
varied by season. To help reduce customer confusion, Enbridge Gas 
Distribution will implement an annual Delivery Charge instead of the 
existing seasonal charges. The summer/winter seasonal rates will be 
blended into one annual set of rates.

As a regulated utility, Enbridge Gas Distribution earns an approved 
rate of return, or profit, on the capital it has invested in the 
distribution system. This is included in the Delivery Charge and has 
not changed.

Fair and reasonable rates

"Enbridge does not make a profit on the price of natural gas. Neither 
Enbridge nor our customers are pleased when gas supply prices go up," 
said Arunas Pleckaitis, Vice President, Enbridge Gas Distribution. 
"We don't control the price of natural gas. However, we continue to 
work with the natural gas industry to help ensure a positive 
environment for continued investment that will bring natural gas from 
traditional and non-traditional sources to market to help meet 
growing demand while addressing price volatility."

Natural gas continues to be the best choice for Ontario consumers. 
Over the past five years, natural gas has been on average about 43 
per cent cheaper than electricity.(2)

Enbridge Gas Distribution delivers gas to about 1.7 million customers 
in its franchise area. Of those customers, about 60 per cent buy 
their gas supply from the utility. About 40 per cent of the utility's 
customers buy their gas supply directly from marketers.

Please see the attached backgrounder for more information about 
Enbridge Gas Distribution prices.

http://www2.cdn-news.com/database/fax/2000/927enb.pdf

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

(2) Based on the annual bill for a typical residential customer who 
buys their natural gas from the utility. Updated based on annualized 
rates effective October 1, 2004.

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For more information please contact:

Enbridge Gas Distribution
Lisa McCarney
Manager, Media and External Relations
(416) 495-5662
Email: lisa.mccarney@enbridge.com
Website: www.enbridge.com