Enbridge Gas Distribution — the regulated utility subsidiary of Enbridge Inc. — said Thursday that it has received approval from the Ontario Energy Board to lower its natural gas rates for Ontario customers effective April 1.

The changes include decreases in the gas supply charge and the delivery charge as well as a gas cost adjustment refund and a one-time rate adjustment refund. As of April 1, residential customers who buy the natural gas they use from the utility will pay C23.29 cents per cubic meter for the commodity, based on the combined effect of the gas supply charge decrease and the gas cost adjustment refund.

The utility noted that the impact of the changes will vary based on the amount of gas used and whether customers buy their natural gas from the utility or a natural gas marketer. Enbridge Gas Distribution said the changes will result in a C$116 annual decrease for a typical residential customer who buys natural gas from Enbridge Gas Distribution, excluding the gas cost adjustment refund and the one-time rate adjustment refund. The change will result in a $16 annual decrease for a typical residential customer who buys natural gas from a marketer.

“Our natural gas prices reflect the price of natural gas in the North American market,” said Lino Luison, vice president, Enbridge Gas Distribution. “When natural gas market prices decline, our gas supply prices follow suit. The opposite is also true.”

As a result of a decrease in market prices, the utility’s new residential gas supply charge will be C27.80 cents per cubic meter. The current price is C31.0561 cents per cubic meter. The new gas cost adjustment refund of C4.51 cents per cubic meter will be in place from April 1 to Sept. 30. It replaces the gas cost adjustment refund of C1.28 cents per cubic meter that went into effect on Jan. 1. The refund is a result of the difference between the actual natural gas costs and the amount collected from customers through the gas supply charge. For the typical residential customer who buys their natural gas from the utility, the gas cost adjustment refund will amount to approximately C$33.08.

Customers will also see a one-time rate adjustment refund on their April bill, reflecting an adjustment to the sharing of fiscal 2004 earnings achieved by the company that were above the board-approved rate of return. It will be about C$1.50 for the typical residential customer. In addition, the delivery charge will decrease by approximately C$16 for the typical residential customer. This decrease is due to a reduction in the cost of transporting natural gas from western Canada.

“While we don’t control the price of gas, we do try to minimize volatility for customers through quarterly adjustments and our gas purchasing practices,” added Luison. “We also proactively work with the industry to encourage continued investment in bringing new gas supply to market to help reduce price volatility.”

Enbridge Gas Distribution is Canada’s largest natural gas distribution utility, providing service to 1.7 million residential, commercial and industrial customers in central and eastern Ontario.

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