TORONTO, ONTARIO--(Marketwire - June 23, 2009) - 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 July 1, 2009 rates. The changes are due to a decrease in North American natural gas prices.
For typical residential customers (1) who buy their gas supply from Enbridge Gas Distribution, the changes will result in a decrease of about $105 annually. There is also a Gas Cost Adjustment Refund of about $147 during the next nine months for typical residential customers who buy their natural gas from Enbridge Gas Distribution.
The Gas Supply Charge has decreased to 20.4 cents per cubic metre ( cents/m3) from 23.5 cents/m3. The Gas Cost Adjustment Refund is 5.72 cents/m3 for the period from July 1, 2009 to March 31, 2010.
Enbridge Gas Distribution does not earn a profit on the price of natural gas. Customers who purchase their gas supply from Enbridge Gas Distribution pay the same price that the Company pays to purchase the natural gas in the North American market. Market price forecasts are usually reviewed every three months and, if they have gone up or down, Enbridge applies to the OEB for an adjustment to its prices. Any difference between forecast costs and actual prices is either collected from or returned to customers through a Gas Cost Adjustment.
Gas supply costs are passed through to customers without any mark-up. Enbridge Gas Distribution earns an OEB-approved regulated rate of return, or profit, on the distribution of natural gas.
Residential customers who purchase their natural gas from a marketer will see their bill decline by approximately $10 annually due to a decrease in commodity-related delivery costs. The Gas Supply Charge for these customers will depend on their contracts with their marketers.
Natural gas remains the most economical choice for home and water heating in Ontario. Over the past five years, natural gas has been on average 41 per cent less expensive than electricity and 39 per cent less expensive than oil. (2)
Customers are encouraged to visit www.enbridgegas.com to look for energy efficiency tips that will help them get the best value for their energy dollar, sign up for eBill, Enbridge's electronic billing service, and register for the Budget Billing Plan which begins in September for the 2009-2010 heating season.
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 about 1.9 million customers in Ontario, New York State, New Brunswick and southwestern Quebec.
Please see the attached backgrounder for more information about Enbridge Gas Distribution's prices.
http://media3.marketwire.com/docs/623enb2.pdf
(1) A typical residential customer uses 3,064 cubic metres of natural gas a year for home and water heating.
(2) Based on a five-year rolling average from August 2004 to July 2009. Natural gas prices based on Enbridge Gas Distribution's July 2009 prices. Electricity prices based on Toronto Hydro rates that went into effect May 2009 and are approved by the Ontario Energy Board. Oil prices are based on rates as of April 2009. The calculations are done on an energy equivalent basis. Estimates do not include taxes or any rental or financing costs.
For more information please contact:
Enbridge Gas Distribution
Media contact:
Lisa McCarney-Warus
(416) 495-5662
Email: lisa.mccarney@enbridge.com