TORONTO, ONTARIO--(CCNMatthews - Dec. 20, 2006) - Enbridge Gas Distribution (TSX:ENB) (NYSE:ENB), a regulated utility, announced today that it has received approval from the Ontario Energy Board for its January 1, 2007 rates. The Gas Supply Charge and the Delivery Charge have decreased and there is a new Gas Cost Adjustment refund.
The total annual bill will decrease by about $90 for typical residential customers (1) who buy their gas supply from Enbridge Gas Distribution. This is due to a decrease in the Gas Supply Charge to 31.5 cents/m3 from 34.1 cents/m3 and the decrease in the Delivery Charge due to lower commodity related costs.
A Gas Cost Adjustment refund of 0.9 cents/m3 will go into effect for the period January 1, 2007 through December 31, 2007 for customers who buy their gas supply from Enbridge Gas Distribution. The Gas Cost 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. The Gas Cost Adjustment refund will amount to about $26 during the next 12 months for a typical residential customer.
The total annual bill will decrease by about $11 for typical residential customers who buy their gas supply from marketers. This is from a decrease in the Delivery Charge due to lower commodity related costs.
"High natural gas storage volumes and a quiet hurricane season have helped reduce natural gas prices," said Lino Luison, Vice President, Enbridge Gas Distribution. "Prices are down significantly over this time last year, further enhancing the ongoing value of natural gas."
The majority of customers in Ontario use natural gas for home and water heating because it's convenient, reliable and it would cost them considerably more to use electricity or home heating oil. Over the past five years, natural gas has been on average about 41 per cent less expensive than electricity and 25 per cent less expensive than oil.(2)
The total annual bill for a typical residential customer using 3,064 cubic metres of natural gas for home and water heating is about $1,506. The same customer using electricity for home and water heating would spend approximately $2,886.(2)
Residential customers use about 60 per cent of their annual gas use between December and March. To help manage monthly costs, Enbridge encourages customers to sign up for the Budget Billing Plan to help spread annual gas costs out over 11 months. Customers can register and find energy efficiency tips at the Winter Information Centre at www.enbridge.com/winter.
As a utility regulated by the Ontario Energy Board, Enbridge Gas Distribution earns an approved rate of return on the capital it has invested in the distribution system. This is included in the distribution charges. Enbridge Gas Distribution does not earn a profit on the Gas Supply.
About 60 per cent of customers buy their natural gas from Enbridge Gas Distribution. About 40 per cent of customers buy the natural gas they use directly from natural gas marketers and the price they pay for their Gas Supply Charge is based on their contract with their marketers.
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/1220enb.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, excluding the Gas Cost Adjustment Refund. Natural gas and electricity prices are based on rates in effect as of January 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.