Enbridge Gas New Brunswick files an application to the NB Energy and Utilities Board
This morning, Enbridge Gas New Brunswick filed a rate application with the New Brunswick Energy and Utilities Board (EUB) to establish just and reasonable rates setting the public gas utility on a path towards long-term sustainability.
Gilles Volpé, General Manager of Enbridge Gas New Brunswick, explains what this application means for the public gas utility.
“When a public gas utility is able to recover its full revenue requirement (cost of operations), it is able to ensure the safe and reliable delivery of natural gas and invest in growing the system and the number of customers. This provides the opportunity to reduce costs for all customers.” said Volpé.
The proposed rate increase will not affect residential and small commercial customers which accounts for 82% of natural gas customers in New Brunswick. Commercial and industrial customers that received an average of a 32% reduction in distribution costs last fall will receive a 20% increase. This will still result in average savings of 20% over previous rates. Natural gas continues to be a significantly lower cost alternative compared to other fuels such as oil and electricity by as much as 50% for commercial and industrial users.
“Enbridge Gas New Brunswick has analyzed all the options available of how to best move forward to ensure it is recovering its revenue requirement shortfall while keeping the best interest of its customers in mind, therefore, the proposed rates do not provide full recovery of the entire 2013 revenue requirement shortfall.” says Volpé.
The proposed distribution rates have been requested to take effect July 1, 2013 pending approval from the EUB.
Enbridge Gas New Brunswick remains committed to providing clean and economical natural gas in a safe and reliable manner to over 12,000 customers in New Brunswick.