TORONTO, ONTARIO--
Represents a seven per cent decrease effective January 1, 2002 for
typical residential customers who buy their gas from the utility.
Enbridge Consumers Gas announced today that it has applied to the
Ontario Energy Board to adjust gas prices effective January 1,
2002. For residential customers who buy their gas from the
utility, this would represent a decrease of seven per cent on the
total annual bill for a typical heating and water heating
residential customer, or a total annual savings of $95.
"Based on our forecasts, we anticipate that natural gas prices
will remain lower in the coming months and are adjusting our rates
to reflect that," said Jim Schultz, President, Enbridge Consumers
Gas. "The utility passes through the price that it pays to buy the
commodity to customers. Our gas prices will be adjusted quarterly
to ensure that they reflect any changes in the market direction."
If approved, the cost of the commodity for residential customers
who buy their gas from Enbridge Consumers Gas would be 23.3 cents
per cubic meter. The new rate is based on a commodity charge of
18.1 cents per cubic meter and a temporary gas in storage
surcharge of 5.2 cents per cubic meter that is in place from
September 1, 2001 to March 31, 2002.
The application also includes a slight reduction in the delivery
charge due to lower commodity-related costs. If approved, this
would be a decrease of about $12 per year for a typical home and
water heating residential customer. The decrease in the delivery
charge would apply to both customers who buy gas from gas
marketers and customers who buy gas from the utility. The $12
decrease in delivery charge is included in the $95 total annual
savings for the typical residential customers who buy their gas
from the utility.
Gas in Storage Surcharge
Enbridge Consumers Gas purchases gas during low demand seasons and
stores it for use during peak winter months. The difference
between the price paid to purchase the gas and the current gas
supply price is then distributed to or recovered from customers.
Adjustments for the cost of gas in storage were previously
included in the gas supply charge. Effective September 1, 2001,
the adjustment is shown separately on customers' bills as the gas
in storage surcharge. Breaking it out as a separate charge allows
customers to see the price that Enbridge Consumers Gas anticipates
it will pay to purchase the commodity in the coming year so that
they can make informed decisions when comparing the utility's
commodity price with commodity prices being offered by gas
marketers.
Quarterly Rate Adjustments
With the approval of the Ontario Energy Board, Enbridge Consumers
Gas has moved to a quarterly review of rates in order to ensure
that prices more closely reflect market conditions. Customers who
buy their commodity directly from Enbridge Consumers Gas, a
regulated utility, pay the same price the utility pays to purchase
the gas. Rate notices about price changes, including the gas in
storage surcharge, are sent to customers when the new rates are
approved by the Ontario Energy Board.
Natural gas is a safe, reliable, environmentally friendly and
efficient source of energy for home and water heating needs. More
information about Enbridge Consumers Gas is available on the web
site at www.cgc.enbridge.com.
Enbridge Consumers Gas is a wholly owned subsidiary of Enbridge
Inc. of Calgary. It is Canada's largest natural gas distribution
company and distributes gas to 1.5 million customers in Ontario,
Quebec and New York State; and is developing a gas distribution
system for the province of New Brunswick. Enbridge Inc. is a
leader in energy transportation, distribution and services in
North America and internationally. Enbridge Inc. employs
approximately 6,000 people, primarily in Canada, the U.S. and
South America. Enbridge common shares trade on the Toronto Stock
Exchange in Canada and 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 www.enbridge.com.