Union Gas customers can start looking for smaller bills

Ontario Energy Board
News Release

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OEB issues rate adjustment for Union Gas Limited

TORONTO - The Ontario Energy Board (the Board) has approved changes to the rates Union Gas Limited (Union) charges its customers effective October 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 a decrease 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 October 1, 2007.

The adjustment is a credit that represents the difference between the actual and forecast cost of 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 of October to December.

Effective October 1, 2007, the natural gas commodity rates for Union Gas consumers are as follows:

Northern rate zone

- natural gas price cents/m(3): 29.2137

- gas price adjustment cents/m(3): -6.2521

- effective price cents/m(3): 22.9616

Northwestern rate zone

- natural gas price cents/m(3): 28.8494

- gas price adjustment cents/m(3): -6.2521

- effective price cents/m(3): 22.5973

Fort Frances rate zone

- natural gas price cents/m(3): 28.5823

- gas price adjustment cents/m(3): -6.2521

- effective price cents/m(3): 22.3302

Eastern rate zone

- natural gas price cents/m(3): 29.5223

- gas price adjustment cents/m(3): -6.2521

- effective price cents/m(3): 23.2702

Southern rate zone

- natural gas price cents/m(3): 29.5223

- gas price adjustment cents/m(3): -4.5888

- effective price cents/m(3): 24.9335

As a result of the changes, residential system gas consumers using 2,600 cubic meters (m3) a year will see a decrease between $58 and $73 annually on their bill.

Consumers who purchase their gas commodity from a natural gas marketer will see a decrease between $1 and $7 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.

Complete rate schedules are available on the board's website.

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 12-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 three 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 website or contact the Consumer Relations Centre at 416-314-2455 or toll-free at 1-877- 632

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