Natural Gas Rate Updates
Natural gas utilities apply for a quarterly rate adjustment to reflect the difference between the forecasted price for natural gas in the next 12 months and how much it actually costs. In Ontario, utilities pass the cost to purchase the gas on to consumers, with no markup.
These quarterly adjustments reduce the risk of large, one-time payments or rebates.
Supply disruptions caused by unforeseen events, such as severe or abnormal weather can impact the market price of natural gas.
Rate adjustments are implemented January 1, April 1, July 1 and October 1, after the Board reviews the utility’s application.
NATURAL GAS RATES AT A GLANCE
| April 1, 2012 Natural Gas Rates | |
|---|---|
| Union Gas Limited | 8.1496 ¢/m3 |
| Enbridge Gas Distribution Inc. | 8.0648 ¢/m3 |
| Natural Resource Gas Limited | 18.1045 ¢/m3 |
OEB'S ROLES IN NATURAL GAS RATES
In natural gas, the OEB sets rates for:
- the distribution, transmission, and storage of natural gas;
- the commodity price for natural gas;
The OEB does not regulate prices charged for competitive services such as:
- contracts offered by natural gas marketers;
- water heater rentals; and
- repair or maintenance services for water heater rentals.
These products and services are available from a number of companies competing for your business.
RATE ADJUSTMENTS
Union Gas Limited
April 1, 2012 Rate Adjustments
Change in Gas Supply Charge (including Gas Commodity Price Adjustment)
|
Rate Zone |
Price ¢/m3 |
|---|---|
|
Fort Frances |
8.1505 |
|
Northwestern |
8.2013 |
|
Northern |
8.2656 |
|
Eastern |
8.3225 |
|
Southern |
8.1496 |
Annual Rate Impact for an Average System Supply Consumer (using 2,600 m3/month)
|
Rate Zone |
Total Annual Increase/Decrease |
|---|---|
|
Fort Frances |
-$90.21 |
|
Northwestern |
-$90.49 |
|
Northern |
-$90.87 |
|
Eastern |
-$91.27 |
|
Southern |
-$77.83 |
The main reason for the rate change is a decrease to the forecast price Union expects to pay for natural gas for the next 12 months.
Note: Natural gas rates are based on a forward looking forecast for the next 12 months. Forecasts are never perfect, so the billed price is normally either higher or lower than the actual market price. The difference is tracked in a special account (called the Purchased Gas Commodity Variance Account or PGCVA) and is adjusted with a credit or a charge in subsequent QRAM applications.
|
Rate Zone |
Natural Gas Price ¢/m3 |
Gas Price Adjustment ¢/m3 |
Effective Price ¢/m3 |
|---|---|---|---|
|
Fort Frances |
9.3029 |
-1.1524 |
8.15 |
|
Northwestern |
9.3537 |
-1.1524 |
8.21 |
|
Northern |
9.4180 |
-1.1524 |
8.27 |
|
Eastern |
9.4749 |
-1.1524 |
8.33 |
|
Southern |
9.4749 |
-1.3253 |
8.15 |
Enbridge Gas Distribution Inc.
April 1, 2012 Natural Gas Rate Changes
Change in Gas Supply Charge (including quarterly adjustment) = 8.0648 ¢/m3
Monthly Rate Impact for an Average Consumer (using 3,064 m3/month) = -$107
The main reason for the rate change is a decrease to the forecast price Enbridge expects to pay for natural gas for the next 12 months.
Note: Natural gas rates are based on a forward looking forecast for the next 12 months. Forecasts are never perfect, so the billed price is normally either higher or lower than the actual market price. The difference is tracked in a special account (called the Purchased Gas Commodity Variance Account or PGCVA) and is adjusted with a credit or a charge in subsequent QRAM applications.
|
Natural Gas Price ¢/m3 |
Gas Cost Adjustment ¢/m3 |
Effective Price ¢/m3 |
|---|---|---|
|
9.4150 |
-1.3502 |
8.0648 |
Natural Resource Gas Limited
April 1, 2012 Rate Changes
Change in Gas Supply Charge (including quarterly adjustment) = 18.1045 ¢/m3
Annual Rate Impact for an Average Consumer (using 2,003 m3/month) = - $36.27
The main reason for the rate change is a decrease to the forecast price NRG expects to pay for natural gas over the next 12 months.
Note: Natural gas rates are based on a forward looking forecast for the next 12 months. Forecasts are never perfect, so the billed price is normally either higher or lower than the actual market price. The difference is tracked in a special account (called the Purchased Gas Commodity Variance Account or PGCVA) and is adjusted with a credit or a charge in subsequent QRAM applications.
Page last updated 2012-03-22
