TORONTO, ONTARIO--(Marketwire - June 21, 2012) - Enbridge Gas Distribution Inc. (TSX:ENB.TO - News) (NYSE:ENB - News), a regulated natural gas distribution utility, announced today that it has received approval from the Ontario Energy Board (OEB) for new rates effective July 1, 2012.
For typical residential customers(i) who buy their gas supply and transportation from Enbridge Gas Distribution, the changes will result in an overall increase of about $8 annually. This is primarily due to increased commodity costs.
Typical residential customers, who purchase their gas supply from a marketer and obtain transportation services from Enbridge Gas Distribution, will see a decrease of about $4 annually. This is primarily due to decreased costs for transporting natural gas from Western Canada and the United States to Ontario.
The total effect on a customer's bill depends on how much gas a customer uses.
Effective July 1, 2012, Enbridge Gas Distribution's Gas Supply Charge will increase from 9.42 cents per cubic metre ( cents/m3) to 9.85 cents/m3. The Cost Adjustment includes a refund on Gas Supply of 1.37 cents/m3. Combined, these result in an effective Gas Supply Charge of 8.48 cents/m3.
Enbridge Gas Distribution does not earn a profit on the price of natural gas. Gas supply costs are passed through to customers without any mark-up. Any difference between forecast costs and actual prices is either collected from or returned to customers through a Cost Adjustment.
Based on Enbridge Gas Distribution's approved residential rates, natural gas is currently the most economical choice for home and water heating in Ontario. It is about 72 per cent less expensive than electricity and about 74 per cent less expensive than oil.(ii)
A typical residential customer purchasing their gas supply from Enbridge is paying less today for their total annual natural gas bill than they were five years ago. As of July 2012, the annual bill will be about $900. In July 2007, the annual bill for the same customer was about $1489.(i)
Enbridge Gas Distribution has a more than 160-year history and is Canada's largest natural gas distribution company. It is owned by Enbridge Inc., a Canadian-based leader in energy transportation and distribution and one of the 2012 Global 100 Most Sustainable Corporations. Enbridge Inc. has been selected as one of Canada's Greenest Employers for 2012 and is one of Canada's Top 100 Employers. Enbridge Gas Distribution and its affiliates distribute natural gas to more than 1.9 million customers in Ontario, Quebec, New York State and New Brunswick. For more information visit www.enbridgegas.com.
Please see the attached backgrounder for more information about Enbridge Gas Distribution's prices.
To view the backgrounder, please visit the following link: http://media3.marketwire.com/docs/621enb2.pdf
(i) A typical residential customer uses 3,064 cubic metres of natural gas a year for home and water heating. Historical calculations are based on Enbridge Gas Distribution Inc.'s residential rates from July 2007 and July 2012.
(ii) Natural gas rates are based on Enbridge Gas Distribution Inc.'s approved residential rates effective July 1, 2012. Electricity rates are based on Toronto Hydro's Ontario Energy Board's approved rates effective May 2012. Oil prices are based on publicly posted Statistics Canada historical rates up to and including rates available as of April 2012.Costs have been calculated for the equivalent energy consumed by a typical residential customer and include all service, delivery and energy charges. HST is not included.
Enbridge Gas Distribution Inc.