TORONTO, ONTARIO--Enbridge Gas Distribution has received approval
from the Ontario Energy Board to adjust its prices effective
October 1, 2003. The adjustments include a 12 per cent decrease
in natural gas supply prices, a 1.8 per cent increase in the
Company's 2004 distribution rates and a fiscal 2003 year-end
adjustment.
Effective October 1, 2003 the price for the utility's natural gas
supply will decrease by 12 per cent. The new residential gas
supply price will be 23.5 cents per cubic metre.
The Ontario Energy Board has approved a 1.8 per cent or $14
million increase in distribution revenues for Enbridge Gas
Distribution Inc. This increase is 10 per cent less than the
forecast inflation rates in the 2004 Ontario Consumer Price
Index.
"We used an innovative approach to our 2004 rate case, asking
that rates be set based on the 2003 base with an adjustment of
less than the cost of inflation," said Marika Hare, Director,
Regulatory Affairs. "With the co-operation of the Ontario Energy
Board and intervenors, this approach has resulted in the
implementation of rates at the beginning of the fiscal year."
Customers will also see a one-time year-end refund on their
October bills. The adjustment reflects lower than forecast
commodity and transportation charges, as well as lower than
anticipated storage costs during 2003.
The surcharge that was implemented on July 1, 2003 does not
change, remaining in effect until December 31, 2003.
Total Change for Residential Customers
The impact the changes effective October 1, 2003 on individual
customers 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(a) residential customers who buy their gas supply
from Enbridge Gas Distribution, a regulated utility, changes
effective October 1, 2003 will result in a decrease of about $92
dollars per year, or seven per cent of the total annual bill. The
one-time year-end adjustment will be a refund of $13.
For typical(a) residential customers who buy their gas supply
from a natural gas marketer, the changes will result in an
increase of about $4 dollars per year. The year-end adjustment
will be a one-time refund of $5.
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 half
buy their gas supply from the utility. The utility's remaining
customers buy their gas supply directly from marketers. The gas
supply charge for customers who buy their gas supply from natural
gas marketers is based on the terms of their contracts.
Please see the attached backgrounder for more information about
Enbridge Gas Distribution prices:
http://www2.cdn-news.com/database/fax/2000/enb0930.pdf
(a) 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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