Union Gas bills going up. Happy Canada Day

NEWS RELEASE

ONTARIO ENERGY BOARD

************************* OEB issues rate adjustment for Union Gas Limited

TORONTO, June 19 - Today the Ontario Energy Board approved changes to natural gas commodity and delivery rates charged by Union Gas Limited (Union) effective July 1, 2008.

This quarterly rate adjustment to the natural gas commodity price reflects an increase 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 board also approved a natural gas price adjustment for system gas customers for the 12-month period starting July 1, 2008.

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

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

The changes will result in an annual increase of between $255 and $302 for residential system gas consumers using 2,600 cubic meters (m(3)) a year in the Fort Frances, Northwestern, Northern, Eastern and Southern rate zones.

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

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 April 1 to June 30 as follows:

Northern rate zone

- Natural gas price cents/m(3): 37.4547

- Gas price adjustment cents/m(3): 0.2435

- Effective price cents/m(3): 37.2112

Northwestern rate zone

- Natural gas price cents/m(3): 37.0290

- Gas price adjustment cents/m(3): 0.2435

- Effective price cents/m(3): 37.2725

Fort Frances rate zone

- Natural gas price cents/m(3): 36.7101

- Gas price adjustment cents/m(3): 0.2435

- Effective price cents/m(3): 36.4666

Eastern rate zone

- Natural gas price cents/m(3): 37.8309

- Gas price adjustment cents/m(3): 0.2435

- Effective price cents/m(3): 38.0744

Southern rate zone

- Natural gas price cents/m(3): 37.8309

- Gas price adjustment cents/m(3): -1.0660

- Effective price cents/m(3): 36.7649

Consumers in the Eastern, Northwestern, Northern, and Fort Frances rate zones who purchase their gas commodity from a natural gas marketer will see a change between an increase of $30 and an increase of $42 to their overall annual bill resulting from changes to transportation, storage and delivery charges.

Consumers in the Southern rate zone will see an increase of approximately $1.

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 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 served by responsive regulatory processes that are effective, fair and transparent.

For more information on the board, please visit our website or contact the Consumer Relations Centre at 416-314-2455 or toll-free at 1-877-632-2727.

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