8-K

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

Filed July 3, 2017For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

This SEC filing by Enbridge Inc. (ENB) primarily consists of two press releases. The first, dated June 2, 2017, announced an upcoming mid-year investor update meeting to discuss the strategic positioning and integration progress following the acquisition of Spectra Energy. This event aimed to provide the investment community with insights into the combined entity's competitive advantages and operational advancements. The second press release, dated June 27, 2017, detailed an approved increase in natural gas distribution rates for Enbridge Gas Distribution Inc. in Ontario, effective July 1, 2017. The company informed customers that typical residential bills would rise by approximately 4%, or $36 annually, due to higher North American natural gas prices and an increase in the Cost Adjustment. Enbridge emphasized that it does not profit on gas supply costs and that the increase is a pass-through of market prices and historical cost variances, while also highlighting programs to help customers manage energy costs.

Key Highlights

  • 1Enbridge Inc. held a mid-year investor update meeting on June 8-9, 2017, to discuss the strategic outlook and integration progress post-Spectra Energy acquisition.
  • 2The investor update focused on the competitive positioning of the combined businesses and the ongoing integration efforts.
  • 3Enbridge Gas Distribution Inc. received approval from the Ontario Energy Board (OEB) for new natural gas rates effective July 1, 2017.
  • 4Typical residential customers in Ontario will see an approximate 4% increase in their annual natural gas bills, amounting to about $36.
  • 5The rate increase is attributed to higher North American natural gas prices and an adjustment for past cost variances.
  • 6Enbridge reiterated that it does not earn a profit on the price of natural gas; costs are passed through to customers.
  • 7The company provided information on energy efficiency programs and financial assistance for customers facing difficulties in managing their energy bills.

Frequently Asked Questions

The main purpose of the mid-year investor update meeting was to provide the investment community with a strategic update on Enbridge following its acquisition of Spectra Energy. Executives discussed the competitive positioning of the combined businesses and the progress of their integration.

The natural gas distribution rates for Enbridge Gas Distribution Inc. in Ontario are increasing primarily due to higher natural gas prices in North America. Additionally, an increase in the Cost Adjustment, which reflects the difference between forecast and actual costs from the past twelve months, also contributed to the rise.

No, Enbridge stated that it does not earn a profit on the price of natural gas. The gas supply costs are passed through directly to customers without any mark-up. Any difference between forecasted and actual costs is either collected from or returned to customers via the Cost Adjustment.

Enbridge offers several options for customers facing difficulties. These include setting up payment arrangements by calling Enbridge directly, participating in the Low-Income Energy Assistance Program (LEAP) for emergency financial assistance, and utilizing the Home Winterproofing Program for free energy efficiency improvements for qualifying customers.