Natural Gas rates adjusted for the season

News Release
OEB

TORONTO, June 14 /CNW/ - The Ontario Energy Board (the Board) has approved changes to the rates Union Gas Limited (Union) charges its customers effective July 1, 2007. Consumers’ bills will change depending on the amount of natural gas used, type of consumer and the location of the consumer.
Rate changes were made to reflect an increase in the forecast average price of natural gas over the next 12 months, and to capture associated adjustments to the transportation, storage and delivery costs of natural gas in Ontario.
The OEB has also approved a natural gas price adjustment for system gas customers for the 12-month period starting July 1, 2007. The adjustment is a credit that represents the difference between the actual and forecasted costof natural gas.
The combined effect of the approved natural gas rate and the gas price adjustment results in the effective rate consumers will pay for the period July to September.
Effective July 1st, the natural gas commodity rates for Union Gas consumers are as follows:
Eastern 33.2739 -7.5884 25.6855
Northwestern 32.4613 -7.5884 24.8729
Northern 32.9042 -7.5884 25.3158
Fort Frances 32.1338 -7.5884 24.5454
Southern 33.2739 -5.7728 27.5011
As a result of the changes, residential system gas consumers using 2,600 cubic meters (m(3)) a year will see an increase between $42 and $75 annually on their bill.
Consumers who purchase their gas commodity from a natural gas marketer will see an increase between $0 and $8 to their overall annual bill resulting from changes to transportation charges. This does not include the terms of any direct purchase contracts that the consumer has entered into with a natural gas marketer. These rate changes do not have any impact on the price of the natural gas commodity direct purchase consumers pay as a result of a contract with a natural gas marketer.
Full rate schedules are available on the Board’s web site.
Natural gas utilities forecast the price of natural gas on a quarterly basis to determine what they expect to pay for the natural gas they supply to their customers over a twelve-month period. 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 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.
The Ontario Energy Board regulates the province’s electricity and natural gas sectors in the public interest. It envisions a viable and efficient energy sector with informed consumers served by responsive regulatory processes that are effective, fair and transparent.
For more information on the Board, please visit our web site at www.oeb.gov.on.ca or contact the Consumer Relations Centre at 416-314-2455 or toll-free at 1-877-632-2727.