OEB approves rate changes for Union Gas Limited

TORONTO, Sept. 17 /CNW/ - Today the Ontario Energy Board approved changes to the natural gas rates Union Gas Limited (Union) will charge its customers effective October 1, 2010. The new rates reflect the Quarterly Rate Adjustment and the Boards decision on Union's Earnings Sharing and deferral account clearance.

The natural gas commodity price consumers will pay for the period of October 1st to December 31st, 2010 are as follows:

    
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                                              Gas Price
                  Natural Gas Price          Adjustment     Effective Price
    Rate Zone             cents/m(3)          cents/m(3)          cents/m(3)
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    Fort Frances            15.2364             -3.3061             11.9303
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    Northwestern            15.3201             -3.3061             12.0140
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    Northern                15.4315             -3.3061             12.1254
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    Eastern                 15.5280             -3.3061             12.2219
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    Southern                15.5280             -2.3403             13.1877
    -------------------------------------------------------------------------
    

As a result of both decisions, residential consumers who purchase natural gas directly from Union and use 2,600 cubic meters (m(3)) a year will pay approximately $4 to $7 more per year depending on which of Union's five rate zones they live in. 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, a lower gas price adjustment for the period of October 1st to December 31st, 2010 and adjustments to other associated charges. The gas price adjustment represents the difference between actual gas commodity prices and the prices that were forecast last quarter.

The rate change also includes the Board's decision on Union's earnings sharing and deferral accounts clearance which, decreases bills for both system gas and direct purchase customers by approximately $18 for the period October 1, 2010 to March 31, 2011.

For more detailed information about this announcement visit our web site at http://www.oeb.gov.on.ca/OEB/Consumers/Natural+Gas/Natural+Gas+Rates.

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 and works toward this vision through regulation that is 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.

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For further information: Media Inquiries: Vanda Wall, Ontario Energy Board, 416-544-5171; Public Inquiries: 416-314-2455 Or 1-877-632-2727