TORONTO, ONTARIO--(Marketwire - Dec. 18, 2008) - 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 January 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 $107 annually. There is also a Gas Cost Adjustment Refund.
Residential customers who purchase their natural gas from a marketer will see their bill decrease by about $3.40 annually due to a decrease in delivery costs. The Gas Supply Charge for these customers will depend on their contracts with their marketers.
The Gas Supply Charge has decreased to about 30.4 cents per cubic metre (cents/m3) from 33.8 cents/m3. 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 prices are usually reviewed every three months and, if prices have gone up or down, Enbridge applies to the OEB for an adjustment to its prices to reflect the changes.
There is a Gas Cost Adjustment Refund of 1.2 cents/m3 for the period from January 1, 2009 to December 31, 2009. This results in a refund of about $37 during the next twelve months for typical residential customers who buy their natural gas from Enbridge Gas Distribution.
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.
Customers are encouraged to visit the online Winter Information Centre at www.enbridgegas.com/winterinfo for information about managing energy costs this winter. Customers can sign up for the Budget Billing Plan; learn about Enbridge's support of low-income households through Winter Warmth and other programs; and find energy tips and rebates that can help reduce energy use and save money.
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 40 per cent less expensive than electricity and 38 per cent less expensive than oil (2).
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 prices at: http://media3.marketwire.com/docs/1218enb_fact.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 February 2004 to January 2009. Natural gas prices based on Enbridge Gas Distribution's January 2009 Rate Adjustment. Electricity prices based on Toronto Hydro rates that went into effect November 2008 and are approved by the Ontario Energy Board. Oil prices are based on rates as of October 2008. 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
Lisa McCarney-Warus
Media contact
(416) 495-5662
Email: lisa.mccarney@enbridge.com