TORONTO, June 19 /CNW/ - Today the Ontario Energy Board approved changes
to natural gas commodity and delivery rates charged by Enbridge Gas
Distribution Inc. (Enbridge) effective July 1, 2008. The new rates also
reflect the Board's May 15, 2008 Decision relating to the multi-year incentive
rate mechanism plan for Enbridge's regulated natural gas distribution,
transmission and storage services, also effective July 1, 2008. The rates
approved today supersede rates approved on May 15, 2008.
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 increase of approximately $298 on their bill.
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
quarterly to determine what they expect to pay for the natural gas they supply
to their customers over a twelve-month period. Natural gas utilities do not
make a profit on the sale of natural gas. It is sold to consumers with no
mark-up. 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 July 1, 2008 to December 31, 2008. A
typical residential customer will now see a refund of 0.8578 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
38.1543 cents/m(3) for the period July 1st to September 30, 2008.
Consumers who purchase their gas commodity from a natural gas marketer
will see an increase of about $33 annually to their bill as a result of
increases to the cost to transport natural gas to Ontario. These rate changes
do not have any impact 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 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)