CHATHAM, ON, Nov. 27, 2012 /PRNewswire/ - Spectra Energy Corp (NYSE: SE) today
announced that its subsidiary, Union Gas, has received a decision from
the Ontario Energy Board (OEB) that certain revenues realized from the
optimization of upstream transportation contracts must be reclassified
as gas supply costs, with 90% of those revenues refunded to customers.
This highly irregular decision will result in a charge of approximately
$30 million to Spectra Energy's earnings before interest and taxes in
the fourth quarter of 2012, related to 2011 and 2012.
"We are very disappointed in the OEB's unexpected retroactive change to
the incentive regulation framework which was approved in 2007 and under
which customers have benefited from no delivery rate increase for five
years," said Steve Baker, president, Union Gas. "Retroactive rate
making creates regulatory uncertainty and an environment that is
neither predictable nor supportive of economic development, and can
have far-reaching effects on the province's ability to attract capital
About Union Gas
Union Gas Limited is a major Canadian natural gas storage, transmission
and distribution company based in Ontario with over 100 years of
experience and service to customers. The distribution business serves
about 1.4 million residential, commercial and industrial customers in
more than 400 communities across northern, southwestern and eastern
Ontario. Union Gas' storage and transmission business offers a variety
of storage and transportation services to customers at the Dawn Hub,
the largest underground storage facility in Canada and one of the
largest in North America. It offers customers an important link in the
movement of natural gas from Western Canadian and U.S. supply basins to
markets in central Canada and the northeast U.S. Union Gas, one of
Canada's Top 100 Employers for 2011, 2012 and 2013, and one of Canada's
Greenest Employers for 2012, is a Spectra Energy (NYSE: SE) company with assets of $5.8 billion and approximately 2,200 employees.
For more information, visit uniongas.com.
SOURCE Union Gas Limited