Enbridge Gas New Brunswick Receives Approval to Adjust Distribution Rates
Enbridge Gas New Brunswick received approval from the New Brunswick Energy and Utilities Board to adjust distribution rates and charges for all customer rate classes, effective January 1st, 2017. The adjustments result in a decrease in the total cost of natural gas for all commercial customers and a small increase in the total cost of natural gas for residential customers.
For homeowners, the adjustment is based on a target 20% annual savings compared to the NB Power residential electricity rate and the lower forecasted cost of natural gas supply. The adjustments for commercial customers are based on the cost of providing distribution service to each rate class.
The total cost of natural gas has remained stable for homeowners over the last number of years despite annual adjustments in distribution costs and monthly adjustments to commodity rates.
“In 2015, the total annual cost of natural gas for residential customers went down by 8% compared to the previous year. In 2016, it went up by only 1%. And the total annual cost of natural gas is forecasted to go up by only 0.7% in 2017,” said Enbridge’s general manager Gilles Volpé.[1]
The actual impact on customers’ total annual costs will depend on how much natural gas is consumed and what the actual cost of natural gas supply will be in 2017. For example: a typical residential customer who buys their gas supply from Enbridge (Enbridge Utility Gas) and uses 81 GJ per year for heat and hot water may see a total annual bill increase of less than 1% compared to what was forecasted in 2016. That is approximately $20 over the course of the year.[2] It is based on the approved 2017 distribution rate, and is offset by the lower forecasted average price of Enbridge Utility Gas.
Homeowners can still expect to see 20% savings compared to electricity and even more if the cost of natural gas supply is lower than expected. “If electricity was measured in GJs, the total price of residential electricity in January 2017 would be $29.44/GJ, compared to $17.90/GJ for natural gas including commodity and delivery.” said Volpé, “That’s significant savings.”[3]
Large and industrial sized commercial customers can expect a decrease in the total cost of natural gas compared to 2016 as a result of adjustments to the distribution rates and the lower forecasted price of natural gas supply for 2017. Depending on their rate class, typical commercial customers may see decreases in their total annual bills of 3-14%.
“Natural gas continues to be a significantly lower cost energy alternative,” explains Gilles Volpé, Enbridge Gas New Brunswick’s General Manager, “large commercial customers will save as much as 39% savings compared to oil.”
The approved distribution rates and charges will be in place for at least one year.
All adjustments to distribution rates and charges for all rate classes are reviewed and approved by the New Brunswick Energy and Utilities Board an annual basis through an open and transparent regulatory process.
| Rate Class | Min Consumption (Monthly Demand Peak) | Max Consumption (Monthly Demand Peak) | Customer Charge ($ / month) | Demand Charge ($ / GJ) | Delivery Rates ($ / GJ) |
|---|---|---|---|---|---|
| Small General Service | - | - | 18.00 | N/A | 9.4450 |
| Mid-General Service | - | < 250 GJ | For customers with maximum consumption < 60 GJ per month: 20.00 For customers with maximum consumption > 60 GJ per month: 50.00 |
N/A |
For the first 100 GJ delivered per month: 11.8805 For volumes delivered in excess of 100 GJ per month: 8.0820 |
| Large General Service | 250 GJ | - |
For customers with maximum consumption < 650 GJ per month: 275.00 For Customers with maximum consumption > 650 GJs per month: 375.00 |
N/A |
For the first 250 GJs delivered per month: 8.9005 - between September 1 and April 30: 6.6526 - between May 1 and Aug 30: 2.5037 |
| Contract General Service | 1,000 GJ | < 10,000 GJ | N/A | 19.00 |
For volumes delivered - between September 1 and April 30: 6.0235 |
| Industrial Contract General Service | 10,000 GJ | - | 3,300.00 | 25.56 |
For volumes delivered - between September 1 and April 30: 1.7298 - between May 1 and Aug 30: 0.9375 |
| Off-Peak Service | N/A | N/A | 50.00 | N/A |
6.0207 |
For more information about the 2017 distribution rates & charges for all rate classes, please see Billing & Pricing.
Note: Enbridge does not earn a profit on the sale of natural gas supply (Enbridge Utility Gas). Customers have a choice when it comes to purchasing their natural gas supply. Please visit www.nbeub.ca for more information.
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[1] Based on the average annual forecast of Enbridge Utility Gas price at the time of filing and the NBEUB approved distribution rates for typical residential customer profile.
[2] Based on the average annual forecast of Enbridge Utility Gas price of $8.8206/GJ for 2017 at the time of filing.
[3] Based on the forecast of Enbridge Utility Gas price of $8.45/GJ for January, the NB Power residential electricity rate and the conversion from kWh to GJ.