Union Gas rates change. On April Fool's Day

NEWS RELEASE

ONTARIO ENERGY BOARD

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

TORONTO, March 13 - Today the Ontario Energy Board (the board) approved changes to the rates Union Gas Limited (Union) charges its customers effective April 1, 2008 arising from Union's April 2008 QRAM application.

The new rates also reflect the board's March 4, 2008, decision and order for interim rates pertaining to the multi-year incentive rate mechanism plan for Union's regulated natural gas distribution, transmission and storage services.

The rates approved on March 4, 2008, are superseded by the rates approved today.

The impact of the March 4, 2008, decision contributes an annual decrease of approximately $1 for residential system gas consumers using 2,600 cubic meters (m(3)) a year in the Fort Frances, Northwestern, Northern, and Eastern zones, and a decrease of approximately $3.50 for residential system gas consumers in the Southern rate zone.

These effects are included in the overall QRAM adjustment.

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 on a quarterly basis to determine what they expect to pay for the natural gas they supply to their customers over a 12-month period.

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 April 1, 2008.

The adjustment is a credit that represents the difference between the actual and forecast 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 combined impact of both decisions will result in an annual increase of between $120 and $127 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 January 1 to March 31 as follows.

Northern rate zone

- natural gas price cents/m(3): 30.1980

- gas price adjustment cents/m(3): -1.8093

- effective price cents/m(3): 28.3887

Northwestern rate zone

- natural gas price cents/m(3): 29.8307

- gas price adjustment cents/m(3): -1.8093

- effective price cents/m(3): 28.0214

Fort Frances rate zone

- natural gas price cents/m(3): 29.5614

- gas price adjustment cents/m(3): -1.8093

- effective price cents/m(3): 27.7521

Eastern rate zone

- natural gas price cents/m(3): 30.5197

- gas price adjustment cents/m(3): -1,8093

- effective price cents/m(3): 28.7104

Southern rate zone

- natural gas price cents/m(3): 30.5197

- gas price adjustment cents/m(3): -3.0936

- effective price cents/m(3): 27.4261

Consumers who purchase their gas commodity from a natural gas marketer will see a change between a decrease of $3 and an increase of $5 to their overall annual bill resulting from changes to transportation, storage and delivery charges.

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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