Natural gas prices set to go down April 1st

Today the Ontario Energy Board approved changes to the natural gas rates Union Gas Limited (Union) will charge its customers effective April 1, 2011.
The natural gas commodity price consumers will pay for the period of April 1st to June 30th, 2011 are as follows:
Natural Gas Gas Price Effective
Price Adjustment Price
Rate Zone cents/m(3) cents/m(3) cents/m(3)
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Fort Frances 13.8259 -2.6375 11.1884
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Northwestern 13.8995 -2.6375 11.2620
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Northern 13.9965 -2.6375 11.3590
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Eastern 14.0797 -2.6375 11.4422
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Southern 14.0797 -0.7597 13.3200
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See Gas page nine

The change reflects a decrease in what Union forecasts it will have to pay for the natural gas it supplies its customers over the next 12 months, as well as changes to the gas price adjustment, and other related adjustments for the period of April 1, 2011 to June 30, 2011. The gas price adjustment represents the difference between actual gas commodity prices and the prices that were forecast last quarter.

While natural gas commodity prices are decreasing, transportation charges to deliver gas to Union have increased. The transportation charges are set by the National Energy Board and passed on to consumers. As a result, residential consumers who purchase natural gas directly from Union and use 2,600 cubic meters (m(3)) a year will see an overall increase ranging from $28 to $62 per year on their bills.