TORONTO, March 26 /CNW/ - Today the Ontario Energy Board approved changes
to natural gas commodity and delivery rates charged by Enbridge Gas
Distribution Inc. effective April 1, 2007. The changes are the result of an
Interim Order regarding Enbridge's 2007 rates and an Interim Decision and
Order regarding Enbridge's Quarterly Rate Adjustment Mechanism (QRAM). The
2007 rate order comes first and is immediately superseded by the April 2007
The rate application deals with all aspects of Enbridge's rates,
including delivery charges, cost allocations, storage costs, policy matters,
variance and deferral accounts and other issues. The QRAM application deals
with natural gas commodity price and related adjustments.
Consumers' bills will change depending on the amount of natural gas used,
and type of consumer. Residential system gas consumers using 3,064 cubic
meters (m(3)) a year will see an annual increase of $42 for gas commodity
purchases and $16 for distribution costs for a combined affect of $58 a year.
The Board will continue to review the natural gas commodity rates for system
gas customers every 3 months and make an adjustment to rates, if necessary.
This quarterly rate adjustment to the natural gas commodity price
reflects an increase in the forecast average price of natural gas over the
next 12 months. Natural gas utilities forecast the price of natural gas on a
quarterly basis to determine what they expect to pay for the natural gas they
supply to their customers over a twelve-month period. Supply disruptions
caused by unforeseen events, the price of oil on the world market, and severe
or abnormal weather can impact the market price of natural gas.
The OEB has also approved a change to the gas cost adjustment for system
gas customers for the period of April 1, 2007 to December 31, 2007. A typical
residential customer will now see a refund of 3.8645 cents/m(3). The credit
represents the difference between the actual and forecasted cost of natural
The combined effect of the approved natural gas commodity price and the
gas price adjustment means consumers will pay an effective rate of 28.9954
cents/m3 for the period April 1st to June 30th.
Consumers purchasing their natural gas from a marketer (direct purchase
customers) will see an adjustment on their bill reflecting the changes in the
delivery charge and the monthly customer charge, an increase of about $16
annually to their bill. These rate changes do not have any effect on the price
of the natural gas commodity direct purchase consumers pay as a result of a
contract with a natural gas marketer.
The Ontario Energy Board regulates the province's electricity and natural
gas sectors in the public interest. It envisions a healthy and efficient
energy sector with informed consumers, and works towards this vision through
regulatory processes that are effective, fair and transparent.
For more information on the Board, please visit our web site at
www.oeb.gov.on.ca or contact the Consumer Relations Centre at 416-314-2455 or
toll-free at 1-877-632-2727.
For further information:
For further information: Vanda Wall, Ontario Energy Board, (416)