OEB issues Rate Adjustment for Union Gas Limited



    TORONTO, March 13 /CNW/ - Today the Ontario Energy Board (the Board)
approved changes to the rates Union Gas Limited (Union) charges its customers
effective April 1, 2008 arising from Union's April 2008 QRAM application. The
new rates also reflect the Board's March 4, 2008 Decision and Order for
Interim Rates pertaining to the multi-year incentive rate mechanism plan for
Union's regulated natural gas distribution, transmission and storage services.
The rates approved on March 4, 2008 are superseded by the rates approved
today.
    The impact of the March 4, 2008 Decision contributes an annual decrease
of approximately $1 for residential system gas consumers using 2,600 cubic
meters (m(3)) a year in the Fort Frances, Northwestern, Northern, and Eastern
zones, and a decrease of approximately $3.50 for residential system gas
consumers in the Southern rate zone. These effects are included in the overall
QRAM adjustment.
    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 Board also approved a natural gas price adjustment for system gas
customers for the 12-month period starting April 1, 2008. The adjustment is a
credit that represents the difference between the actual and forecasted cost
of natural gas.
    Consumers' bills will change depending on the amount of natural gas used,
type of consumer and the location of the consumer. The combined impact of both
decisions will result in an annual increase of between $120 and $127 for
residential system gas consumers using 2,600 cubic meters (m(3)) a year in the
Fort Frances, Northwestern, Northern, Eastern and Southern rate zones. 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.
    The combined effect of the approved natural gas commodity price and the
gas price adjustment results in the effective rate consumers will pay for the
period January 1st to March 31st as follows.

    
    -------------------------------------------------------------------------
    Rate Zone        Natural Gas Price      Gas Price       Effective Price
                     cents/m(3)             Adjustment      cents/m(3)
                                            cents/m(3)
    -------------------------------------------------------------------------
    Eastern              30.5197             -1.8093            28.7104
    -------------------------------------------------------------------------
    Northwestern         29.8307             -1.8093            28.0214
    -------------------------------------------------------------------------
    Northern             30.1980             -1.8093            28.3887
    -------------------------------------------------------------------------
    Fort Frances         29.5614             -1.8093            27.7521
    -------------------------------------------------------------------------
    Southern             30.5197             -3.0936            27.4261
    -------------------------------------------------------------------------
    

    Consumers who purchase their gas commodity from a natural gas marketer
will see a change between a decrease of $3 and an increase of $5 to their
overall annual bill resulting from changes to transportation, storage and
delivery charges. 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.
    Full rate schedules are available on the Board's web site.

    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)
440-8149


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