Customer Notification

On October 28, 2009, Enbridge Gas New Brunswick applied to the New Brunswick Energy and Utilities Board (EUB) for an increase to the maximum allowable delivery rate.

If approved, changes outlined in this application would affect all customer rate classes, with the exception of the Heavy Fuel Oil (HFO) class.

Final approved delivery rates are expected to take effect in the spring of 2010.

• The impact on your annual cost of natural gas will depend on your rate class.
  (Not sure which rate class you are in?)
  
• For residential customers, the changes would result in an increase of approximately $82 - $136 in annual delivery charges, depending on their rate class.
• But with the proposed change in the delivery charge and the changes in market conditions, the overall annual cost of natural gas for a typical residential customer would actually be approximately $151 less compared to what was expected at this time last year.
• Click here to view a table that highlights the Annual Impact on the Total Cost of Natural Gas, including the proposed changes and the changes in market conditions, based on a comparison to this time last year.

How long will these changes be in effect?

• The proposed increase would set the maximum rate for a minimum of one year. However if conditions change, such that rates need to be lower than the maximum allowable rate, we will adjust accordingly, just as we have done in the past. This can be done through an application to the regulator at any time.
  
  

Why is Enbridge Gas New Brunswick proposing to increase delivery rates?

• Enbridge Gas New Brunswick is complying with the rate formula approved by the New Brunswick Energy and Utilities Board.
• Since the commodity price of natural gas has gone down, an increase in the delivery charge helps us to recover as much of our operating costs as possible, while still ensuring that our customers see the target annual savings for their rate class.
• Enbridge Gas New Brunswick is not yet a mature utility and our customer base is not large enough to support the recovery of all of our costs due to the significant investment required to develop the natural gas distribution system in the province. The proposed changes will reduce the difference between Enbridge Gas New Brunswick’s actual costs and the amounts it currently recovers in rates.

Why does natural gas seem to be more expensive in New Brunswick compared to other provinces?

• Provinces such as Ontario and Alberta are mature market and have established distribution systems.  Enbridge Gas New Brunswick is servicing a smaller customer base and have only been installing infrastructure for less than 10 years.
• We are still developing the natural gas distribution system in the province and we are not at the point yet where we are able to recover our costs. Our delivery rates allow us to recuperate some of these costs, while committing to providing energy that is less expensive than what typical customers would otherwise pay for oil and electricity in New Brunswick.

• Enbridge Gas New Brunswick complies with the rate formula approved by the New Brunswick Energy and Utilities Board.
• We deliver natural gas to customers with the goal of providing target annual savings against other energy sources, such as oil and electricity.
• These market-based rates allow Enbridge Gas New Brunswick to provide customers with a lower cost of energy while recovering as much of the operating costs as possible.
• Visit the Rates section for more information on natural gas rates in New Brunswick.