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Natural Gas Rate Updates
Union Gas Limited
October 1, 2008 Rate Adjustments:
The Ontario Energy Board has approved changes to the rates for Union Gas Limited (Union), effective October 1, 2008. Consumers’ bills will change depending on the type of customer, the location of the customer, and the amount of natural gas used.
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, transportation price adjustment, and delivery price adjustment costs of natural gas in Ontario. The combined effect of these changes is reflected in the attached rate zone tables. The annual bill increase shows how much a residential gas consumer using 2,600 cubic metres (m3) of natural gas per year would pay if no other rate changes took place during the next year.
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.
In Union’s Eastern, Northwestern, Northern and Fort Frances rate zones there was an increase to the transportation price adjustment for an overall annual bill decrease. In the Southern rate zone, there was a slight increase to the delivery price adjustment for an overall annual bill decrease.
The following are the changes for Union’s operating areas or rate zones.
Eastern, Northwestern, Northern and Fort Frances Rate Zones
An average residential system gas customer using 2,600 m3 of natural gas, in the Fort Frances, Northwestern, Northern, and Eastern rate zones will see a net annual decrease between $27 and $32 on their bill.
Consumers purchasing their natural gas from a gas marketer (direct purchase customers) will see an adjustment on their bill reflecting only changes to the transportation price adjustment. Direct purchase customers using 2,600 m3 of natural gas, living in Union’s Fort Frances, Northwestern, Northern and Eastern rate zones will see an annual increase of approximately $5. This does not include the terms of any direct purchase contracts the customer has entered into with a natural gas marketer.
Rates effective October 1, 2008
Southern Rate Zone
An average residential system gas customer using 2,600 m3 of natural gas in the Southern rate zone will see an overall annual decrease of $25 on their natural gas bill.
Consumers purchasing their natural gas from a gas marketer (direct purchase customers) will see a minor adjustment on their bill reflecting changes to the delivery price adjustment. Depending on the terms of retail energy marketer contracts, consumers may also be affected by changes to transportation rates. A typical direct purchase customer living in Union’s Southern rate zone will see no change to their overall annual bill. This does not include the terms of any direct purchase contracts the customer has entered into with a natural gas marketer.
Rates effective October 1, 2008
Enbridge Gas Distribution Inc.
October 1, 2008 Rate Changes
The Ontario Energy Board has approved changes to the rates for Enbridge Gas Distribution Inc. (Enbridge), effective October 1, 2008. The changes result from Enbridge’s Quarterly Rate Adjustment Mechanism (QRAM).
A residential system gas supply customer using 3,064 m3 per year will see an overall annualized decrease of about $157 excluding the gas cost adjustment. Customers who buy their natural gas from a gas marketer will experience an annualized increase of about $4 per year. 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 details of the rate changes are:
Gas Supply Charge
- The Gas Supply Charge has decreased from 39.0121 ¢/m3 to 33.7551 ¢/m3 representing an annual decrease of about $161 on a typical residential customer’s annual bill. The Gas Supply Charge is based on a forecast of market prices for natural gas. Enbridge’s forecast, prepared in July 2008, predicted lower prices for the next 12-month period. In Ontario, natural gas distributors must pass through the actual cost to purchase the natural gas to the customer, with no markup.
Gas Cost Adjustment
- The Board has approved a change to the gas cost adjustment for system gas customers for the period of October 1, 2008 to March 31, 2009. A typical residential customer would see a charge of 1.7008 ¢/m3 resulting in an increase of about $39 for a typical residential customer during this period. The surcharge is due to differences between actual and forecast natural gas costs.
Delivery Charge
- The total annual bill for the delivery charge will increase by approximately $4 due to higher costs to deliver natural gas.
Rates effective October 1, 2008
- Enbridge Residential Rates (per month)
Natural Resource Gas Limited
October 1, 2008 Rate Changes
The Ontario Energy Board has approved changes to rates for Natural Resource Gas Limited (NRG), effective October 1, 2008. A residential system gas customer using 2,009 m3 of natural gas annually will see an annualized decrease of about $142 on their annual bill. 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.
Residential customers purchasing their natural gas commodity from a natural gas marketer (direct purchase customers) will see no changes to their gas bills as a result of this rate change.
The gas supply charge which is based on a mix of forecast costs and contract prices to purchase natural gas has decreased from 45.9925 ¢/m3 to 38.9444 ¢/m3. NRG’s forecast, prepared in August 2008 predicted lower commodity prices for the next 12-month period. In Ontario, natural gas distributors must pass through the actual cost to purchase the natural gas, with no mark-up, to the customer.
The following table summarizes the changes to the rates of system gas and direct purchase residential customers.
Rates effective October 1, 2008