8-K

ENBRIDGE INC 8-K Report (Jul 1, 2011)

Filed July 1, 2011For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) filed a Form 6-K on July 1, 2011, primarily containing two press releases. The first, dated June 15, 2011, announced that Richard Bird, EVP, CFO & Corporate Development, would present at the BMO Capital Markets 2011 North American Pipelines & Utilities Conference on June 22, 2011. This indicated active engagement with the investment community and provided an opportunity for management to discuss the company's strategy and outlook. The second press release, dated June 22, 2011, from Enbridge Gas Distribution Inc., announced approved rate adjustments from the Ontario Energy Board (OEB) effective July 1, 2011. For typical residential customers buying both supply and transportation from Enbridge Gas Distribution, this would result in an approximate annual increase of $32, largely driven by higher commodity costs. Conversely, customers who purchase their gas supply from a third-party marketer but use Enbridge for transportation would see a decrease of about $7 annually due to lower transportation costs. The company emphasized that it does not earn a profit on the price of natural gas, as these costs are passed through to customers.

Key Highlights

  • 1Enbridge Inc. announced its CFO would present at the BMO Capital Markets 2011 North American Pipelines & Utilities Conference.
  • 2The presentation offered investors an opportunity to hear directly from senior management.
  • 3Enbridge Gas Distribution received OEB approval for new rates effective July 1, 2011.
  • 4Typical residential customers who buy both gas supply and transportation from Enbridge Gas Distribution will see an approximate $32 annual increase.
  • 5The increase in residential bills is primarily attributed to rising commodity costs.
  • 6Residential customers using Enbridge for gas transportation but buying supply from marketers will experience an approximate $7 annual decrease.
  • 7Enbridge Gas Distribution confirmed it does not profit on natural gas commodity prices, passing costs directly to consumers.

Frequently Asked Questions

This 8-K filing served to formally submit two press releases to the SEC. One announced Enbridge's participation in an investor conference, and the other detailed approved natural gas rate adjustments for its distribution subsidiary in Ontario.

For typical residential customers who purchase their natural gas supply and transportation services directly from Enbridge Gas Distribution, the annual cost is expected to increase by approximately $32. This is mainly due to higher commodity costs. Customers who secure their gas supply from other marketers but use Enbridge for transportation services will see an annual decrease of about $7.

No, Enbridge Gas Distribution clarified that it does not earn a profit on the price of natural gas itself. The costs for gas supply are passed directly through to customers without any mark-up. Any variances between forecasted and actual costs are reconciled through a Cost Adjustment mechanism, either collecting from or returning funds to customers.

The presentation by Enbridge's CFO at the BMO conference provided a platform for the company to engage with investors and analysts, discuss its business operations, financial performance, and strategic outlook within the pipelines and utilities sector.