TORONTO, Sept. 24 /CNW/ - Today the Ontario Energy Board approved changes
to natural gas commodity and delivery rates charged by Enbridge Gas
Distribution Inc. (Enbridge) effective October 1, 2007. The changes are the
result of a Final Rate Order regarding Enbridge's 2007 distribution rates and
a Decision and Order regarding Enbridge's Quarterly Rate Adjustment Mechanism
(QRAM). The 2007 rate order comes first and is immediately superseded by the
October 2007 QRAM.
On March 26, 2007 the Board issued an interim rate order pertaining to
Enbridge's 2007 distribution rates, which include delivery charges, cost
allocations, storage costs, policy matters, variance and deferral accounts and
other issues. The rate order issued today sets Enbridge's final 2007
distribution rates. The QRAM application deals with the natural gas commodity
price and related adjustments.
Consumers' bills will change depending on the amount of natural gas used,
and type of consumer. Residential consumers who purchase their natural gas
from their local utility (system gas customers) using 3,064 cubic meters
(m(3)) a year will see an annual decrease of approximately $116 for gas
commodity purchases and an increase of approximately $2 for distribution costs
resulting in a decrease of approximately $114 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 a decrease 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 Board has also approved a change to the gas cost adjustment for
system gas customers for the period of October 1, 2007 to March 31, 2008. A
typical residential customer will now see a refund of 3.0868 cents/m(3). The
credit represents the difference between the actual and forecast cost of
The combined effect of the approved natural gas commodity price and the
gas cost adjustment means consumers will pay an effective rate of 26.0110
cents/m(3) for the period October 1st to December 31st.
Consumers purchasing their natural gas from a marketer (direct purchase
customers) will see an adjustment on their bill that reflects the changes to
the delivery charge and the monthly customer charge, an increase of about $2
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 Board also approved a delivery rate adjustment of 0.5652 cents/m(3)
for residential system gas customers (0.5471 cents/m(3) for residential direct
purchase customers) for the period October 1, 2007 to December 31, 2007 that
reflects a delivery charge increase for the period January 1, 2007 to
September 30, 2007.
A one time rate adjustment was also approved for volumes consumed from
January 1, 2006 to December 31, 2006, to clear 2006 balances for certain
deferral and variance accounts.
The Ontario Energy Board regulates the province's electricity and natural
gas sectors in the public interest. It envisions a viable and efficient energy
sector with informed consumers served by responsive 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)