Gas rates to drop New Year's Day

NEWS RELEASE

ONTARIO ENERGY BOARD

************************* Ontario Energy Board issues rate adjustment for Union Gas Limited

TORONTO - (December 15) - Today the Ontario Energy Board approved changes to natural gas commodity and delivery rates charged by Union Gas Limited (Union) effective January 1, 2009.

Consumers' bills will decrease depending on the amount of natural gas used, type of consumer and the location of the consumer.

The changes will result in an annual decrease between $104 and $89 for consumers using 2,600 cubic meters (m(3)) a year in the Fort Frances, Northwestern, Northern, Eastern and Southern rate zones who purchase their natural gas directly from Union (system gas customers).

The board also approved a natural gas price adjustment for system gas customers for the 12-month period starting January 1, 2009.

The adjustment is a refund that represents the difference between the actual and forecasted cost of natural gas.

When the effect of the gas price adjustment is factored in, the total decrease is between $112 and $149.

The combined effect of the approved natural gas commodity price and the gas price adjustment results in the effective rate consumers will pay for the period January 1 to March 31.

To view this rate, please click here.

Consumers in the Eastern, Northwestern, Northern, and Fort Frances rate zones who purchase their gas commodity from a natural gas marketer (direct purchase customers) will see a decrease of about $1 to their overall annual bill resulting from changes to the transportation price adjustment.

Consumers in the Southern rate zone will see no change to their bill.

These rate changes do not have any impact on the price of the natural gas commodity direct purchase consumers pay as a result of a contract with a natural gas marketer.

Full rate schedules are available on the board's website.

The board will continue to review the natural gas commodity rates for system gas customers every three months and adjust rates if necessary.

This quarterly rate adjustment to the natural gas commodity price reflects a decrease in the forecast average price of natural gas over the next 12 months.

Natural gas utilities forecast the price of natural gas quarterly to determine what they expect to pay for the natural gas they supply to their customers over a 12-month period.

Natural gas utilities do not make a profit on the sale of natural gas.

It is sold to consumers with no mark-up.

Supply disruptions caused by unforeseen events, the price of oil on the world market, and severe or abnormal weather can impact the market price of natural gas.

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 by clicking here, or contact the Consumer Relations Centre at 416-314-2455 or toll-free at 1-877-632-2727.

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