OEB issues Rate Adjustment for Union Gas Limited

    TORONTO, March 12 /CNW/ - The Ontario Energy Board (the Board) has
approved changes to the rates Union Gas Limited (Union) charges its customers
effective April 1, 2007. Consumers' bills will change depending on the amount
of natural gas used, type of consumer and the location of the consumer.
    Rate changes were made to reflect an increase in the forecast average
price of natural gas over the next 12 months, and to capture associated
adjustments to the transportation, storage and delivery costs of natural gas
in Ontario.
    The OEB has also approved a natural gas price adjustment for system gas
customers for the 12-month period starting April 1, 2007. The adjustment is a
credit that represents the difference between the actual and forecasted cost
of natural gas.
    The combined effect of the approved natural gas rate and the gas price
adjustment results in the effective rate consumers will pay for the period
April to June.
    Effective April 1st, the natural gas commodity rates for Union Gas
consumers are as follows:

                         Natural Gas           Gas Price           Effective
                            Price             Adjustment             Price
    Rate Zone             cents/m(3)           cents/m(3)          cents/m(3)
    Eastern                32.9687              -9.8875             23.0812
    Northwestern           32.1383              -9.8875             22.2508
    Northern               32.5935              -9.8875             22.7060
    Fort Frances           31.7996              -9.8875             21.9121
    Southern               32.9687              -7.0866             25.8821

    As a result of the changes, residential system gas consumers using 2,600
cubic meters (m(3)) a year will see an increase between $33 and $35 annually
on their bill.
    Consumers who purchase their gas commodity from a natural gas marketer
will see an increase of approximately $7 to their overall annual bill
resulting from changes to transporation and delivery charges. This does not
include the terms of any direct purchase contracts that the consumer has
entered into with a natural gas marketer. 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.
    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 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 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)

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