TORONTO, ONTARIO--Enbridge Gas Distribution, a regulated utility,
has received approval from the Ontario Energy Board to adjust its
gas prices effective January 1, 2003. The gas supply charge has
increased to 21.254 cents per cubic metre from 19.095 cents per
cubic metre. There is also a slight increase in the delivery
charge due to costs that are directly linked to the price of the
commodity.
Enbridge Gas Distribution delivers gas to about 1.6 million
customers in its franchise area. Of those customers, slightly
more than half choose to buy their gas supply from the utility.
The utility's remaining customers buy their gas supply directly
from marketers. For customers who buy gas from a marketer, the
price they pay for gas supply is based on their contracts.
For a typical residential customer who buys natural gas from the
utility, the change represents an increase of six per cent or
approximately $68 on the total annual bill. For a typical
residential customer who buys natural gas from a marketer, the
increase to the delivery charge will amount to approximately $2
annually.
Enbridge Gas Distribution does not make a profit on the gas
supply price. Enbridge Gas Distribution establishes its gas
prices for customers based on a 12-month forecast. Four times a
year gas supply prices are reviewed and, if necessary, adjusted
to ensure that they are consistent with the changing 12-month
forecast. If actual costs for purchasing gas are more or less
than forecast, the utility collects or reimburses the difference
from customers.
"The price of natural gas is determined on an open market and
fluctuates," said Jim Schultz, President, Enbridge Gas
Distribution. "Our prices are changed to reflect that. However,
natural gas has been and continues to be less expensive than
other options for heating and water heating."
During the past five years, natural gas has been on average more
than 50 per cent cheaper than electricity and 25 per cent less
expensive than oil for home and water heating. At today's prices,
natural gas is approximately 49 per cent cheaper than electricity
and 17 per cent less expensive than oil for home and water
heating.*
To view the fact sheet that provides additional information about
gas prices, an explanation of certain Enbridge Gas Distribution
charges and customer options for purchasing their gas supply,
please click on the following link:
http://www2.cdn-news.com/database/fax/2000/1230enb.pdf
*Based on the annual bill for the typical residential customer
who uses 3,064 cubic metres of natural gas for home and water
heating.
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 on the Company's web site at
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