Natural gas: A positive development for New Brunswick

Enbridge Gas New Brunswick offers reliable, clean and economic natural gas to its customers and is committed to continuing to provide energy that is less expensive than what typical customers would otherwise pay for oil and electricity in New Brunswick.

The development of the natural gas distribution system has required significant investment in the province. Enbridge Gas New Brunswick has invested more than $380 million in the province during the past decade. With this investment has come over 130 direct jobs within Enbridge Gas New Brunswick and more than 400 additional jobs within the industry.

When Enbridge Gas New Brunswick was granted the franchise rights to the province in 1999 it committed to making natural gas available to as many New Brunswickers as feasible and as quickly as possible. Initially, Enbridge Gas New Brunswick made significant investments to install distribution systems to large communities close to the Maritimes & Northeast Pipeline. Since that initial development, Enbridge Gas New Brunswick has carefully considered further expansion of its system to ensure that over the long term such activities will help to reduce overall costs for all customers.

Due to the significant upfront investment required to initially develop the distribution system, Enbridge Gas New Brunswick cannot currently fully recover all of its costs. This led to the use of “market-based rates.” These rates allow Enbridge Gas New Brunswick to provide its customers with a lower cost energy alternative while recovering as much of its operating costs as possible during the distribution system’s development period. Enbridge Gas New Brunswick is confident that it will develop its distribution business to a level that will eventually support the recovery of these revenue shortfalls.

In the coming weeks, the Energy and Utilities Board will hold a hearing to review evidence that has been presented by a number of parties, including the utility, regarding how the end of Enbridge Gas New Brunswick’s development period should be determined. This is the appropriate forum for these matters to be reviewed and ruled upon. As a monopoly, Enbridge Gas New Brunswick’s operations and rates have been reviewed and ruled upon by the regulator since it began operations. As a public process, any interested parties have had, and continue to have, the opportunity to participate in these hearings so that the regulator has all relevant information before deciding what is in the best interest of existing and future New Brunswick natural gas consumers.

Bringing natural gas to New Brunswick has been a positive development for our province’s economy. Today, New Brunswickers who choose to use natural gas pay less for energy than they would if they were using electricity or oil. Enbridge Gas New Brunswick is committed to delivering clean and economic natural gas to its customers and to delivering a model that works in the best long-term interests of the province.

-Dave Charleson, General Manager
Enbridge Gas New Brunswick