OEB issues Rate Adjustment for Union Gas Limited

    TORONTO, June 19 /CNW/ - Today the Ontario Energy Board approved changes
to natural gas commodity and delivery rates charged by Union Gas Limited
(Union) effective July 1, 2008.
    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 also approved a natural gas price adjustment for system gas
customers for the 12-month period starting July 1, 2008. The adjustment is a
debit or 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 changes will result in
an annual increase of between $255 and $302 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 July 1st to September 30th as follows.

    Rate Zone     Natural Gas Price   Gas Price Adjustment   Effective Price
                  cents/m(3)          cents/m(3)             cents/m(3)
    Eastern            37.8309              0.2435                38.0744
    Northwestern       37.0290              0.2435                37.2725
    Northern           37.4547              0.2435                37.6982
    Fort Frances       36.7101              0.2435                36.9536
    Southern           37.8309             -1.0660                36.7649

    Consumers in the Eastern, Northwestern, Northern, and Fort Frances rate
zones who purchase their gas commodity from a natural gas marketer will see a
change between an increase of $30 and an increase of $42 to their overall
annual bill resulting from changes to transportation, storage and delivery
charges. Consumers in the Southern rate zone will see an increase of
approximately $1. 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)

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