|By Marketwired .||
|March 27, 2014 08:44 PM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 03/28/14 -- Enbridge Gas Distribution Inc., a regulated natural gas distribution utility, announced today that it has received approval from the Ontario Energy Board (OEB) for new rates effective April 1, 2014.
In its decision, the OEB approved the recovery of Enbridge Gas Distribution's costs to supply customers this past winter. However, the rate is approved on an interim basis pending the Board's consideration of steps to smooth costs for customers since the full effect of the rate increase is not expected to be felt by most residential customers until next winter.
Enbridge Gas Distribution submits rate adjustment applications every three months and they are reviewed by the OEB as part of an open and transparent regulatory process.
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.
"We respect the decision and the interim order of the Ontario Energy Board and its desire to further review the bill impact on customers following our coldest winter in 25 years," said Malini Giridhar, Vice President, Enbridge Gas Distribution.
Effective April 1, 2014, Enbridge Gas Distribution's Gas Supply Charge will increase from 12.68 cents per cubic metre ( cents/m3) to 17.60 cents/m3. The interim Cost Adjustment includes a charge on Gas Supply of 3.29 cents/m3. Combined, these result in an effective Gas Supply Charge of 20.89 cents/m3.
If spread evenly throughout the year, for typical residential customers(i) who buy their gas supply and transportation from Enbridge Gas Distribution, the changes would result in an overall increase of approximately $33(ii) a month over the next year. Of this $33 a month, approximately $20 per month relates to costs associated with this past cold winter. The other $13 per month relates to the projected forecast natural gas price, both of which will be reviewed again in three months as part of the normal regulatory process.
Based on these residential rates, natural gas is currently the most economical choice for home and water heating in Ontario. Natural gas is about 59 per cent less expensive than electricity and 63 per cent less expensive than oil.(iii)
The total effect of these changes on a customer's bill depends on how much gas a customer uses.
Enbridge Gas Distribution Inc. 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 two million customers in Ontario, Quebec, New York State and New Brunswick. For more information, including information about the Low-Income Energy Assistance Program and energy efficiency tips, visit www.enbridgegas.com.
(i) Calculations are based on the assumption that a typical residential customer uses about 3,064 cubic metres of natural gas a year for home and water heating.
(ii) The actual monthly impact would vary on factors including the amount of natural gas a customer uses and whether or not they participate in the Budget Billing Program.
(iii) Natural gas rates are based on Enbridge Gas Distribution Inc.'s approved residential rates effective April 1, 2014. Electricity rates are based on Toronto Hydro's Ontario Energy Board's approved rates effective November 2013 and do not include the Ontario Clean Energy Benefit. Oil prices are based on publicly posted Statistics Canada historical rates up to and including rates available as of January 2014. 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.
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