Budget Impact of Rising Natural Gas Expenses

The Ontario Energy Board approved dramatically higher rates for Enbridge Gas that were effective July 1^st.

Compared to this time last year:

1. Commodity costs have more than doubled – from 11¢ to 27¢ per cubic meter.
2. Delivery charges have increased 30%.
3. Carbon Taxes have increased by 25%.

The above increases are further compounded when you consider the impact of the HST.

Customers that are on fixed-rate or price-pool agreements are impacted much less by the above increases.

Crossbridge is supporting their clients by:

1. Increasing the Safety Margin from the traditionally conservative 5% to 9% to account for potential further increases in November.
2. Having our energy manager provide a one-pager to our property managers containing:
   1. What systems can be targeted to reduce natural gas in your building.
   2. Data from our benchmarking exercise to provide a quick and no cost indicator on how efficient your building is.
   3. A summary of things that can be done to lower natural gas consumption.