The construction of a gas distribution system in the province involves the investment in a pipeline system that must be built with the future in mind so that it will meet the current and future demands of New Brunswickers.
In the early years, because of this large upfront capital investment, it meant that we could not charge our customers the real cost of providing the service. Instead, “market based rates" were implemented.
With market based rates, rate classes group customers who on average are paying the similar price for their previous and current energy supply.
"Target annual savings" means that when looking at the expected costs over the next 12 months, a typical customer will realize "X" savings (varies by rate class) compared to their previous fuel source. This was built into the rate formula.
Target Annual Savings by Rate Class:
Once a year, Enbridge Gas New Brunswick may apply to the EUB to increase the maximum delivery charge for any rate class. When the maximum delivery charge is set, we may apply to the EUB to raise or lower the delivery charge within a rate class, but are not able to go over the maximum rate. These adjustments are called Rate Riders and Rate Re-Instatements and may be applied for at any time to maintain an acceptable level of savings over the alternative energy cost, without exceeding the maximum allowable rate. At no time are we allowed to charge more than the maximum approved distribution rate for a class.