TORONTO, ONTARIO--Enbridge Gas Distribution has received approval
from the Ontario Energy Board to adjust its prices effective
January 1, 2004.
The utility's gas supply charge will decrease by approximately 10
per cent. The new residential gas supply price will be 21.21
cents per cubic metre.
The delivery charge will increase due to added costs to transport
gas to Ontario. This represents an increase of about $5.00 a year
for a typical(1) residential customer.
The surcharge that was in place from July 1, 2003 to December 31,
2003 will end. A new gas cost surcharge of 2.2 cents will be
implemented from January 1, 2004 through to September 30, 2004.
This new surcharge will only apply to customers who buy their gas
supply from the utility. The surcharge is to recover the costs of
gas supply purchased and put into storage in the spring when
prices were higher.
Customers will also see a one-time rate adjustment refund on
their January bill. The one-time refund will be approximately
$2.50 for a typical(1) residential customer. This includes a
credit adjustment for the 2003 and 2004 distribution rates
resulting from the Ontario Energy Board's final decision on
outstanding issues related to 2003 rate case.
Change for Residential Customers
The impact of the changes effective January 1, 2004 will vary
based on the amount of gas a customer uses and whether the
customer buys their natural gas from the utility or a natural gas
marketer.
For typical(1) residential customers who buy their gas supply
from Enbridge Gas Distribution, a regulated utility, the gas
supply and delivery charge changes effective January 1, 2004 will
result in a decrease of about $65 dollars on the total annual
bill. The one-time adjustment will be a refund of about $2.50.
The total surcharge from January 1, 2004 to September 30, 2004 is
approximately $48.
For typical(1) residential customers who buy their gas supply
from a natural gas marketer, the delivery charge change will
result in an increase of about $5.00 on the annual bill. The
one-time adjustment will be a refund of about $2.50.
Enbridge Gas Distribution, a regulated utility, does not make a
profit on the gas supply charge. Enbridge Gas Distribution
establishes its natural gas prices for customers based on a
12-month forecast. The forecast is regularly reviewed and, if
necessary, gas supply prices are adjusted quarterly to reflect
the changing 12-month market forecast. If there is a difference
between the forecast prices charged to customers and the actual
amount paid by the Company for the commodity, the difference is
collected from or reimbursed to customers.
Enbridge Gas Distribution delivers gas to about 1.6 million
customers in its franchise area. Of those customers, about 60 per
cent buy their gas supply from the utility. About 40 per cent of
the utility's customers buy their gas supply directly from
marketers and the price they pay for the gas supply charge is
based on the terms of their contracts.
More information about Enbridge Gas Distribution prices can be
found on CCNMatthews' website at:
http://www2.cdn-news.com/database/fax/2000/enbridge_1223.pdf
(1)Based on a typical residential customer who uses 3,064 cubic
metres of natural gas a year for home and water heating.
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