TORONTO, ONTARIO--Enbridge Gas Distribution has received approval from the Ontario Energy Board to adjust its gas prices effective April 1, 2003.
The gas supply charge will increase to 26.6 cents per cubic metre from 21.25 cents per cubic metre. A gas cost surcharge of 3.7 cents a cubic metre from April 1, 2003 to September 30, 2003 will also be in place for customers who buy their gas supply from the utility. The gas cost surcharge represents the difference between the utility's forecast gas supply prices and the amount paid by the utility for gas supply up to February 2003.
For a typical residential customer* who buys natural gas from the utility, the change in gas supply price represents an increase of approximately $164 on their total annual bill. The surcharge will amount to about $27 between April 1 and September 30, 2003. These changes only affect those customers who buy their gas supply from the utility.
Enbridge Gas Distribution also received approval for an increase in the delivery charge. This charge applies to all Enbridge Gas Distribution customers, whether they buy their gas supply from the utility or from a marketer. For a typical residential customer, the increase to the delivery charge is approximately $9 annually. This is due to an increase in the cost of transporting gas from suppliers to the utility's distribution system and an increase in costs that are directly linked, through a formula, to the gas supply charge.
"Increased demand due to the cold weather across North America and less drilling activity have contributed to an increase in natural gas prices, " said Jim Schultz, President, Enbridge Gas Distribution. "Although prices have increased, natural gas continues to be less expensive than other options for home and water heating."
Enbridge Gas Distribution, a regulated utility, does not mak 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 every three months to ensure that they are consistent with the changing 12-month market forecast. If actual costs for purchasing gas are more or less than forecast, the utility collects from, or reimburses customers.
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 price for a customer who buys gas from a marketer is based on their contract.
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.** To view the fact sheet which provides additional information about Enbridge Gas Distribution gas prices and customer options for purchasing their gas supply, please go to the following link...
http://www2.cdn-news.com/database/fax/2000/ENB0328.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. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, which provides distribution services in the provinces of Ontario and Quebec and in New York State; and is developing a gas distribution system for the Province of New Brunswick. The Company employs approximately 4,000 people, primarily in Canada, the U.S. and South America. Enbridge common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the U.S. under the symbol ENB. Information about Enbridge is available at www.enbridge.com.
*The typical residential customers uses 3,064 cubic metres of natural gas for home and water heating.
**Based on the annual bill for the typical residential customer who buys gas supply from the utility. Updated based on April 1, 2003 rates.
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