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Natural Gas Rate Updates
- Natural Gas Prices at a Glance
- Union Gas Limited
- Enbridge Gas Distribution
- Natural Resource Gas Limited
Natural Gas Prices at a Glance
| October 1, 2009 Natural Gas Prices | |
|---|---|
| Union Gas Limited | 11.33 ¢/m3 |
| Enbridge Gas Distribution Inc. | 12.95 ¢/m3 |
| Natural Resource Gas Limited | 27.25 ¢/m3 |
Union Gas Limited
October 1, 2009 Rate Adjustments:
The Ontario Energy Board has approved changes to the rates Union Gas Limited (Union) charges effective October 1, 2009.
Consumers’ bills will change depending on the type of customer, the location of the customer, and the amount of natural gas used.
In all rate zones, 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 gas price adjustment (the difference between the actual and forecasted price of natural gas).
The changes include a natural gas price adjustment representing the difference between the actual and forecasted cost of natural gas, for the 12-month period starting October 1, 2009.
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 ¢/m3 |
Gas Price Adjustment ¢/m3 |
Effective Price ¢/m3 |
|---|---|---|---|
|
Eastern |
19.9470 |
-11.5784 |
8.3686 |
|
Northwestern |
19.5856 |
-11.5784 |
8.0072 |
|
Northern |
19.7788 |
-11.5784 |
8.2004 |
|
Fort Frances |
19.4377 |
-11.5784 |
7.8593 |
|
Southern |
19.9470 |
-8.6108 |
11.3362 |
In Union’s Eastern, Northwestern, Northern and Fort Frances rate zones there was a decrease to the transportation price adjustment. In the Southern rate zone, there was an increase to the transportation rate.
The Board will continue to review the natural gas commodity rates for system gas customers every 3 months and adjust rates if necessary.
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.
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 of approximately $113 on their bill. The changes include an adjustment to the gas cost adjustment for system gas customers for the period of October 1, 2009 to September 30, 2010.
Consumers purchasing 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 decrease of approximately $5. This does not include the terms of any direct purchase contracts the customer has entered into with a natural gas marketer.
Southern Rate Zone
An average residential system gas customer using 2,600 m3 of natural gas a year in the Southern rate zone will see an overall annual decrease of approximately $95 to their natural gas bill. The change includes an adjustment to the gas cost adjustment for system gas customers for the period of October 1, 2009 to September 30, 2010.
Consumers purchasing their natural gas from a gas marketer (direct purchase customers) will see virtually 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.
Enbridge Gas Distribution Inc.
October 1, 2009 Rate Changes
The Ontario Energy Board has approved changes to the rates Enbridge Gas Distribution Inc. (Enbridge) charges effective October 1, 2009. Consumers’ bills will change depending on the type of 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 delivery charges. The combined effect of these changes is reflected in the attached table.
A residential system gas supply customer using 3,064 m3 per year will see a decrease of approximately $21. Customers who buy their natural gas from a gas marketer (direct purchase customers) will see an annualized decrease of approximately $3 per year.
The Board will continue to review the natural gas commodity rates for system gas customers every three months and adjust rates if necessary. The details of the rate changes are:
Gas Supply Charge
- The Gas Supply Charge has decreased from 20.4349 ¢/m3 to 19.8615 ¢/m3 representing an annual decrease of about $18 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 August 2009, 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, 2009 to March 31, 2009. A typical residential customer would see a refund of 6.9075 ¢/m3 resulting in an annualized decrease of about $161 for a typical residential customer. The refund is due to differences between actual and forecast natural gas costs.
Effective Rate
- The combined effect of the approved natural gas commodity price and the gas price adjustment means consumers will pay an effective rate of 12.954 ¢/m3 for the period October 1st to December 31, 2009.
Delivery Charge
- The total annual bill for the delivery charge will decrease by an unnoticeable amount.
Rates effective October 1, 2009
Natural Resource Gas Limited
October 1, 2009 Rate Changes
The Ontario Energy Board has approved changes to the rates Natural Resource Gas Limited (NRG) charges effective October 1, 2009. Consumers’ bills will change depending on the type of 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. The changes are reflected in the attached table.
A residential system gas customer using 2,009 m3 of natural gas annually will see a decrease of about $56 on their annual bill. Customers who buy their natural gas from a gas marketer (direct purchase customers) will see no change to their bill.
The Board will continue to review the natural gas commodity rates for system gas customers every three months and adjust rates if necessary.
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 details of the rate changes are:
Gas Supply Charge
- The gas supply charge which is based on a mix of forecast costs and contract prices to purchase natural gas has decreased from 30.0730 ¢/m3 to 27.2549 ¢/m3 representing an annual decrease of about $56 on a typical residential customer’s annual bill. NRG’s forecast, prepared in August 2009 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 for residential system gas and direct purchase customers.
Delivery Charge
- There were no changes to the delivery charge.
Rates effective October 1, 2009