OEB issues Rate Adjustment for Union Gas Limited

    TORONTO, Sept. 18 /CNW/ - Today the Ontario Energy Board approved changes
to natural gas commodity and delivery rates charged by Union Gas Limited
(Union) effective October 1, 2008.
    This quarterly rate adjustment to the natural gas commodity price
reflects a decrease 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 12-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 October 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 decrease of between $25 and $32 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 three 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 October 1st to December 31st as follows.

    Rate Zone    Natural Gas Price    Gas Price Adjustment    Effective Price
                 cents/m(3)           cents/m(3)              cents/m(3)
    Eastern           33.5079                3.1554               36.6633
    Northwestern      32.8652                3.1554               36.0206
    Northern          33.2064                3.1554               36.3618
    Fort Frances      32.6004                3.1554               35.7558
    Southern          33.5079                1.6012               35.1091

    Consumers in the Eastern, Northwestern, Northern, and Fort Frances rate
zones who purchase their gas commodity from a natural gas marketer will see an
increase of about $5 to their overall annual bill resulting from changes to
the transportation price adjustment. Consumers in the Southern rate zone will
see no change to their bill. 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 website.

    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 website at
www.oeb.gov.on.ca or contact the Consumer Relations Centre at 416-314-2455 or
toll-free at 1-877- 632-2727.

    Ce document est aussi disponible en français.

For further information:

For further information: Paul Crawford, Ontario Energy Board, (416)

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