8-K

ENBRIDGE INC 8-K Report (Jan 3, 2017)

Filed January 3, 2017For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

This 8-K filing, specifically a Form 6-K, from Enbridge Inc. (ENB) primarily concerns the approved rate changes for Enbridge Gas Distribution Inc. effective January 1, 2017. The Ontario Energy Board (OEB) has approved new rates that will result in a typical residential customer's bill increasing by approximately 9%, or $77 annually, bringing the total to about $900. The primary driver for this increase is the introduction of Ontario's cap and trade program, which adds an estimated $80 per year to bills due to costs associated with greenhouse gas emissions.

Key Highlights

  • 1Enbridge Gas Distribution received OEB approval for new rates effective January 1, 2017.
  • 2Typical residential customer bills are expected to increase by approximately 9% ($77 annually).
  • 3The main reason for the rate increase is the introduction of Ontario's cap and trade program for greenhouse gas emissions.
  • 4The cap and trade program is estimated to add about $80 per year to residential customer bills.
  • 5Enbridge passes through natural gas commodity costs and cap and trade costs directly to customers without mark-up.
  • 6The company highlighted that natural gas remains an economical heating choice compared to electricity and oil.
  • 7Enbridge offers several programs and resources to help customers manage energy usage and costs, including efficiency programs and financial assistance.

Frequently Asked Questions

The primary impact is an increase in natural gas rates for residential customers in Ontario, effective January 1, 2017. This is due to new charges related to the Ontario government's cap and trade program.

A typical residential customer's total bill is expected to increase by about nine percent, or approximately $77 per year, leading to an annual bill of around $900.

The cap and trade program is an Ontario government initiative to reduce greenhouse gas emissions. Enbridge is required to acquire allowances to cover emissions from natural gas use and delivery, and these costs are passed directly to customers. This program is estimated to add about $80 per year to customer bills.

No, Enbridge passes through the costs of natural gas supply and the cap and trade program directly to customers without any mark-up. Any differences between forecast and actual costs are reconciled through a Cost Adjustment mechanism.