8-K

ENBRIDGE INC 8-K Report (Mar 29, 2013)

Filed March 29, 2013For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

This Form 6-K filing from Enbridge Inc. (ENB) primarily serves to attach a press release from its subsidiary, Enbridge Gas Distribution Inc. The press release announces adjustments to natural gas rates approved by the Ontario Energy Board (OEB), effective April 1, 2013. For most residential customers who purchase gas supply and transportation from Enbridge Gas Distribution, the net effect is a decrease of approximately $10 annually, largely driven by lower commodity costs. However, customers who obtain their gas supply from a third-party marketer and only use Enbridge for transportation services will see a modest annual increase of around $4 due to higher transportation costs. While the immediate impact on some customers is an increase, the filing highlights that natural gas remains a significantly more economical heating choice in Ontario compared to electricity and oil. Enbridge Gas Distribution also notes a substantial saving for typical residential customers over the past five years, with annual bills approximately $400 lower than they were in 2008. The company emphasizes that it does not profit from the price of natural gas itself, as these costs are passed through directly to consumers with any variances reconciled through a cost adjustment mechanism.

Key Highlights

  • 1Enbridge Gas Distribution received OEB approval for new natural gas rates effective April 1, 2013.
  • 2Typical residential customers buying both gas supply and transportation from Enbridge Gas Distribution will see an average annual decrease of ~$10.
  • 3This decrease is primarily attributed to lower commodity costs.
  • 4Residential customers using Enbridge solely for transportation and purchasing gas supply elsewhere will experience an average annual increase of ~$4.
  • 5This increase for transportation-only customers is due to higher transportation costs.
  • 6Natural gas remains the most economical heating option in Ontario, significantly cheaper than electricity and oil.
  • 7Enbridge Gas Distribution does not earn a profit on the commodity price of natural gas; costs are passed through to customers.

Frequently Asked Questions

This filing is primarily to submit a press release announcing changes to Enbridge Gas Distribution's natural gas rates, which were approved by the Ontario Energy Board and effective April 1, 2013.

For typical residential customers who buy both gas supply and transportation from Enbridge Gas Distribution, the overall annual cost is expected to decrease by approximately $10. However, if you purchase your gas from a marketer and only use Enbridge for transportation, your annual cost is expected to increase by about $4.

No, Enbridge Gas Distribution does not earn a profit on the price of natural gas. The commodity costs are passed directly to customers without any mark-up. Any differences between the forecasted costs and actual prices are either collected from or returned to customers through a cost adjustment mechanism.

Yes, according to the filing, natural gas is presented as the most economical choice for home and water heating in Ontario. It is estimated to be about 70% less expensive than electricity and 73% less expensive than oil based on typical usage and approved rates.