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NEWS RELEASE

ONTARIO ENERGY BOARD

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OEB approves price changes for Union Gas Limited

TORONTO (March 19, 2012) - Today the Ontario Energy Board approved changes to the prices Union Gas Limited (Union) will charge its customers for natural gas effective April 1, 2012.

Change in Gas Supply Charge (including Gas Commodity Price Adjustment) by rate zone and price ¢/m3:

Northern: 8.2656

Northwestern: 8.2013

Fort Frances: 8.1505

Eastern: 8.3225

Southern: 8.1496

Annual Rate Impact for an Average Consumer (using 2,600 m³/month) by rate zone and tital annual increase/decrease direct purchase:

Northern: -$90.87

Northwestern: -$90.49

Fort Frances: -$90.21

Eastern: -$91.27

Southern: -$77.83

The main reason for the rate change is a decrease to the forecast price Union expects to pay for natural gas for the next 12 months.

Note: Natural gas rates are based on a forward looking forecast for the next 12 months.

Forecasts are never perfect, so the billed price is normally either higher or lower than the actual market price.

The difference is tracked in a special account (called the Purchased Gas Commodity Variance Account or PGCVA) and is adjusted with a credit or a charge in subsequent QRAM applications.

Union Residential Rates Effective April 1, 2012:

Northern rate zone

- Natural gas price cents/m3: 9.4180

- Gas price adjustment cents/m3: -1.1524

- Effective price cents/m3: 8.27

Northwestern rate zone

- Natural gas price cents/m3: 9.3537

- Gas price adjustment cents/m3: -1.1524

- Effective price cents/m3: 8.21

Fort Frances rate zone

- Natural gas price cents/m3: 9.3029

- Gas price adjustment cents/m3: -1.1524

- Effective price cents/m3: 8.15

Eastern rate zone

- Natural gas price cents/m3: 9.4749

- Gas price adjustment cents/m3: -1.1524

- Effective price cents/m3: 8.33

Southern rate zone

- Natural gas price cents/m3: 9.4749

- Gas price adjustment cents/m3: -1.3253

- Effective price cents/m3: 8.15

For more information, visit here.

Historical natural gas price information can be found at this website.

The Ontario Energy Board regulates the province's electricity and natural gas sectors in the public interest.

It envisions a viable and efficient energy sector with informed consumers and works toward this vision through regulation that is effective, fair and transparent.

For more information on the board, please visit our website.

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