Natural gas bills going up again

News Release
O.E.B.

TORONTO, Jan. 4 /CNW/ - The Ontario Energy Board on Friday, December 31, 2004 approved increases to both the delivery and gas supply rates Natural Resource Gas Limited (NRG) bills its customers. The changes to delivery charges are retroactive to October 1, 2004 while the changes to gas supply charges are effective January 1, 2005.
The charges for consumers purchasing their natural gas from NRG (system gas customers) will reflect an increase in forecast prices of natural gas over the next 12 months. A typical residential system gas supply customer using 2,000 m(3) per year will see an overall increase of about $44 on their annual bills, reflecting a $38 increase in the gas supply charge and a $6 increase in delivery related charges.
Consumers who buy their natural gas from a natural gas marketer (direct purchase customers) will see an increase of about $6 a year reflecting changes only in the delivery charges. The details of the rate changes are:
Gas Supply Charge Increase
The gas supply charge has increased from 32.5349 cents/m(3) to 34.4410 cents/m(3), representing an increase of about $38 on a typical residential customer’s annual bill. The gas supply charge is based on a forecast of market prices for natural gas. NRG’s forecast, prepared in mid-October 2004 predicted higher prices for the next 12-month period. In Ontario, natural gas distributors must pass through to the customer the actual cost for purchasing the natural gas with no markup.

Delivery Charge Increase
The total annual bill for the delivery charge will increase slightly reflecting the OEB’s final decision regarding 2005 rates. This increase is due, primarily, to the recovery of greater than forecast transportation costs in 2004 and, secondarily, to increases in NRG’s overall costs in 2005.
Fixed NRG Residential Rates (per month) will increase from $9.00 to $9.50.
The market price of natural gas varies depending on supply and demand Natural gas commodity rates are approved by the Board and can change every three months to reflect a forecast of market prices. Adjusting rates on a quarterly basis helps ensure that customers are billed at a rate that more closely reflects the market price of natural gas and reduces the risk of larger rate changes that could result from less frequent adjustments.
The Ontario Energy Board regulates the province’s electricity and natural gas sectors in the public interest. It envisions a healthy and efficient energy sector with informed consumers, and works towards this vision through regulatory processes that are effective, fair and transparent.
For more information on the Board, please visit our web site a twww.oeb.gov.on.ca or contact the Customer Service Centre at 416-314-2455 or toll-free at 1-877-632-2727.