8-K

ENBRIDGE INC 8-K Report (Jan 2, 2014)

Filed January 2, 2014For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

This Form 6-K filing by Enbridge Inc. on January 2, 2014, primarily contains a press release from its subsidiary, Enbridge Gas Distribution Inc., dated December 20, 2013. The press release announces approved new natural gas rates from the Ontario Energy Board (OEB) effective January 1, 2014. For typical residential customers who buy both gas supply and transportation from Enbridge Gas Distribution, the annual cost will increase by approximately $17 due to higher commodity and transportation costs. Customers who purchase gas supply from a third-party marketer but use Enbridge for transportation will see an increase of about $9 annually. Notably, Enbridge Gas Distribution does not profit from the price of natural gas, passing these costs directly to consumers. Despite these adjustments, natural gas remains the most economical heating choice in Ontario.

Key Highlights

  • 1Enbridge Gas Distribution receives OEB approval for new rates effective January 1, 2014.
  • 2Typical residential customers (supply and transportation from Enbridge) will see an approximate annual increase of $17.
  • 3Residential customers using Enbridge for transportation only will see an approximate annual increase of $9.
  • 4Increases are primarily attributed to higher commodity and transportation costs.
  • 5Enbridge Gas Distribution does not earn a profit on the price of natural gas; costs are passed through directly to customers.
  • 6Natural gas remains the most economical choice for home and water heating in Ontario compared to electricity and oil.
  • 7The annual bill for a typical residential customer purchasing gas from Enbridge is projected to be approximately $980 in January 2014, a significant decrease from five years prior.

Frequently Asked Questions

The main purpose of this filing is to report a press release from Enbridge's subsidiary, Enbridge Gas Distribution Inc., which announces new natural gas rates approved by the Ontario Energy Board (OEB) effective January 1, 2014.

For typical residential customers who purchase both their gas supply and transportation services from Enbridge Gas Distribution, the annual cost is expected to increase by approximately $17. Customers who use Enbridge solely for gas transportation will see an increase of about $9 annually.

The rate increases are primarily due to higher commodity and transportation costs for natural gas.

No, Enbridge Gas Distribution explicitly states that it does not earn a profit on the price of natural gas. These costs are passed through directly to customers without any mark-up. Any variances between forecasted and actual prices are adjusted with customers.

Yes, based on the approved rates, natural gas is presented as the most economical choice for home and water heating in Ontario, being significantly less expensive than electricity and oil.