OEB issues Rate Adjustment for Union Gas Limited

    TORONTO, June 14 /CNW/ - The Ontario Energy Board (the Board) has
approved changes to the rates Union Gas Limited (Union) charges its customers
effective July 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 July 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
July to September.
    Effective July 1st, the natural gas commodity rates for Union Gas
consumers are as follows:

    Rate Zone     Natural Gas Price   Gas Price               Effective Price
                  cents/m(3)          Adjustment cents/m(3)   cents/m(3)
    Eastern          33.2739               -7.5884               25.6855
    Northwestern     32.4613               -7.5884               24.8729
    Northern         32.9042               -7.5884               25.3158
    Fort Frances     32.1338               -7.5884               24.5454
    Southern         33.2739               -5.7728               27.5011

    As a result of the changes, residential system gas consumers using 2,600
cubic meters (m(3)) a year will see an increase between $42 and $75 annually
on their bill.
    Consumers who purchase their gas commodity from a natural gas marketer
will see an increase between $0 and $8 to their overall annual bill resulting
from changes to transporation 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 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)

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