OEB issues Rate Adjustment for Union Gas Limited

    TORONTO, Sept. 14 /CNW/ - The Ontario Energy Board (the Board) has
approved changes to the rates Union Gas Limited (Union) charges its customers
effective October 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 a decrease 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 October 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 of
October to December.
    Effective October 1st, 2007 the natural gas commodity rates for Union Gas
consumers are as follows:

                         Natural Gas          Gas Price            Effective
    Rate                    Price             Adjustment             Price
    Zone                  cents/m(3)          cents/m(3)           cents/m(3)
    Eastern                29.5223              -6.2521              23.2702
    Northwestern           28.8494              -6.2521              22.5973
    Northern               29.2137              -6.2521              22.9616
    Fort Frances           28.5823              -6.2521              22.3302
    Southern               29.5223              -4.5888              24.9335

    As a result of the changes, residential system gas consumers using
2,600 cubic meters (m(3)) a year will see a decrease between $58 and $73
annually on their bill.
    Consumers who purchase their gas commodity from a natural gas marketer
will see a decrease between $1 and $7 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.
    Complete 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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