TORONTO, ONTARIO--May 1, 2003 - Enbridge Gas Distribution has
received approval from the Ontario Energy Board to adjust its
prices. The new rates are effective October 1, 2002 and will be
implemented today.
Following are the changes for residential customers.
Delivery Charge Increase
There is an increase in the delivery charge due to an increase in
operating costs. The delivery charge reflects the costs of
providing the safe, reliable delivery of natural gas to all
customers. It includes ongoing maintenance and operation of the
distribution system, responding to inquiries and emergencies and
providing safety information for customers.
The delivery charge varies based on the volume of gas used. For
typical residential customers(1) who use 3,064 cubic metres a
year, this represents an increase of about $16 per year.
One-time Rate Adjustment
A one-time rate adjustment on the May bill includes:
- A charge for the period from October 1, 2002 through to April
30, 2003, which reflects the newly approved rates.
- A refund for the difference between last year's actual costs to
purchase gas for load balancing and the amount recovered in rates
for the period October 1, 2001 to September 30, 2002. For
customers who purchase their gas supply from the utility, the
refund also reflects the difference between the amount recovered
through the gas supply charge and the actual cost for gas used by
customers during that period.
The impact of the adjustment depends on the volume of gas used.
For typical residential customers who purchase their gas supply
from Enbridge Gas Distribution, the rate adjustment will be a
one-time refund of approximately $16 on the May bill. For typical
residential customers who purchase their gas supply from gas
marketers, the rate adjustment will be a one-time charge of
approximately $7.
Gas Supply Charge
For residential customers who buy the natural gas they use from
Enbridge Gas Distribution, there is an increase in the gas supply
charge from 26.60 to 26.65 cents per cubic metre starting May 1,
2003. This is due to increased gas supply operating costs.
The impact of the change depends on the volume of gas used. For
typical residential customers who purchase their gas supply from
Enbridge Gas Distribution, the increase in the gas supply charge
will amount to approximately $2 annually.
As a regulated utility, Enbridge Gas Distribution does not make a
profit on the price of natural gas. Customers pay the same price
as Enbridge Gas Distribution. The difference between actual costs
and those collected through rates for gas purchases are collected
from, or reimbursed to customers.
Customer Charge
For residential customers, there is no change to the customer
charge
Enbridge Gas Distribution delivers gas to about 1.6 million
customers in its franchise area. Of those customers, slightly
more than 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 their contracts.
During the past five years, natural gas has been on average about
46 per cent cheaper than electricity and 20 per cent less
expensive than oil for home and water heating. (2) The attached
fact sheet provides additional information about Enbridge Gas
Distribution gas prices and customer options for purchasing their
gas supply. To view the fact sheet please click on the following
link: http://www2.cdn-news.com/database/fax/2000/0501enb.pdf
Enbridge Inc. is a leader in energy transportation and
distribution in North America and internationally. As a
transporter of energy, Enbridge operates, in Canada and the U.S.,
the world's longest crude oil and liquids pipeline system. The
Company also has international operations and a growing
involvement in the natural gas transmission and midstream
businesses.
(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 the typical residential customer
who buys gas supply from the utility. Updated based on May 1,
2003 rates.
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