TORONTO, ONTARIO--(CCNMatthews - Nov. 1, 2004) - At close of business
today, the Ontario Energy Board (OEB) released a final Decision
regarding Enbridge Gas Distribution's (The Company) Fiscal 2005 Rate
Case. The Decision focused on approval of the remaining issues, not
previously addressed in the partial Decision issued on August 31, 2004.
The decision deals with the five outstanding issues following the
Board's earlier Partial Decision issued on August 31. These five issues
include: transactional services; a new storage contract with Union Gas;
gas supply risk management; recovery of deferred taxes; and change in
year-end.
The OEB approved the Company's proposed changes to the risk management
program; the recovery of $23.9 M, after tax, in deferred taxes; and the
change in year-end reporting to calendar year. The Board denied the
recovery of market-based rates for storage, instead confirming
continuation of cost-based rates for storage services from Union Gas.
Lastly, the Board directed the Company to end its involvement in
commodity arrangements bundled as part of its transactional services
offerings.
There is minimal earnings impact associated with this Decision. The
impact on a typical residential customer is a reduction of approximately
$3 per year (due to the recovery of deferred taxes over three years and
the Union Gas storage contract reverting to cost-based prices).
Further information about the Decision is available at:
www.oeb.gov.on.ca or through the OEB Customer Service Centre at
416-314-2455 or toll-free at 1-877-632-2727.
Enbridge Gas Distribution has a more than 155-year history and is
Canada's largest natural gas distribution company. It delivers safe,
reliable natural gas to about 1.7 million customers in many Ontario
communities. Enbridge Gas Distribution is a leader in promoting energy
efficiency programs. Enbridge Gas Distribution distributes gas in New
York State through St. Lawrence Gas, in New Brunswick through Enbridge
Gas New Brunswick and is affiliated with Gazifere in southwestern
Quebec. Enbridge Gas Distribution is owned by Enbridge Inc., a
Canadian-based leader in energy transportation and distribution.
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