CALGARY, ALBERTA--(CCNMatthews - Apr 23, 2004) - Enbridge Gas
Distribution Inc., a wholly owned subsidiary of Enbridge Inc.,
announced today that the Supreme Court of Canada has released its
decision in the Garland case regarding late payment penalties.
The Supreme Court of Canada has determined that Enbridge Gas
Distribution will be required to repay a portion of amounts paid
to it as late payment penalties from April 1994. The Supreme
Court has directed that a lower court determine the amounts
payable.
Late payment penalty revenues are included in the Company's
estimate of revenues for the year and therefore offset rates
charged to customers. Enbridge does not profit from revenues from
late payment penalties, which accrue to the benefit of all
customers, thereby reducing the cost of providing distribution
services. These estimates and resulting rates were approved by
the Ontario Energy Board ("OEB") each year. For this reason,
Enbridge Gas Distribution intends to apply to the OEB in 2005 for
recovery of any amounts that result from the Garland action and
there is not expected to be any financial impact on the Company.
Mr. Gordon Garland, a customer of Enbridge Gas Distribution
(formerly The Consumers' Gas Company Ltd.), commenced an action
in 1994, asserting that Enbridge Gas Distribution's late payment
penalties were contrary to Canadian federal law and seeking
certification of the action as a class action. In December 2001,
the Ontario Court of Appeal dismissed Mr. Garland's action. In
October 2002 the Supreme Court of Canada granted leave to hear
Mr. Garland's appeal, and the appeal was heard by the Supreme
Court in October 2003.
Late payment penalties were voluntarily adopted in the late 1970s
following review by a task force of Ontario public utilities in
consultation with the then Minister of Energy and were seen as a
means of providing a balanced measure of protection, not only for
the individual customer, but also the broad public interest. They
were designed to ensure that prompt paying customers were not
disadvantaged by customers who do not pay promptly.
On February 1, 2002, Enbridge Gas Distribution changed its late
payment penalty from a one-time five per cent charge to a
one-time two per cent charge on current gas charges. These
charges were made pursuant to rate orders issued by the Ontario
Energy Board.
A copy of the full Supreme Court of Canada decision can be found
When used in this news release, the words "anticipate", "expect",
"project", "believe", "estimate", "forecast" and similar
expressions are intended to identify forward-looking statements,
which include statements relating to pending and proposed
projects. Such statements are subject to certain risks,
uncertainties and assumptions pertaining to operating
performance, regulatory parameters, weather and economic
conditions and, in the case of pending and proposed projects,
risks relating to design and construction, regulatory processes,
obtaining financing and performance of other parties, including
partners, contractors and suppliers.
-30-