Content
Gas Distribution & Services
Gas Distribution and Services consists of gas utility operations which serve residential, commercial, industrial and transportation customers, primarily in central and eastern Ontario, the most significant being EGD. It also includes natural gas distribution activities in Quebec, New Brunswick and New York State, the Company's investment in Aux Sable, a natural gas fractionation and extraction business, and the Company's commodity marketing businesses.
|
Earnings (millions of dollars) |
2007 |
2006 |
2005 |
|---|---|---|---|
Enbridge Gas Distribution |
128.8 |
61.8 |
111.9 |
Noverco |
18.6 |
22.7 |
28.3 |
Enbridge Gas New Brunswick |
12.1 |
9.8 |
6.1 |
Other Gas Distribution |
7.3 |
6.5 |
6.7 |
Energy Services1 |
3.6 |
10.1 |
5.0 |
Aux Sable |
(17.5) |
25.8 |
5.3 |
Other1 |
3.5 |
12.6 |
15.5 |
Impact of tax changes |
27.7 |
28.9 |
- |
|
184.1 |
178.2 |
178.8 |
- Tidal Energy's results have been reclassified from Other to Energy Services for all periods presented. Other now includes earnings from CustomerWorks.
Earnings were $184.1 million for the year ended December 31, 2007 compared with $178.2 million for the year ended December 31, 2006. Increased earnings were due to colder than normal weather in 2007 compared with significantly warmer than normal weather in 2006 as well as customer growth in 2007. These increases were partially offset by derivative losses at Aux Sable and lower contributions from the Energy Services businesses.
Earnings were $178.2 million for the year ended December 31, 2006 compared with $178.8 million for the year ended December 31, 2005. Earnings were comparable with 2005, reflecting a number of offsetting factors including higher earnings from Aux Sable due to upside sharing of positive fractionation margins and lower earnings from EGD resulting from both warmer than normal weather and a lower allowed rate of return on common equity.
Revenues for the year ended December 31, 2007 were $10,227.1 million compared with $8,981.6 million for the year ended December 31, 2006. The increase in revenues was a result of a significant increase in volumes transacted by Tidal Energy and, to a lesser extent, an increase in commodity prices for those transactions.
Revenues for the year ended December 31, 2006 were $8,981.6 million compared with $6,947.1 million for the year ended December 31, 2005. The factors contributing to this increase were Tidal Energy commencing U.S. operations in December 2005, resulting in a full year of revenues in 2006, as well as Tidal Energy earning higher revenues due to a higher average price of crude oil in 2006 and EGD's revenues increasing over 2005 as gas prices were high in Q1 of 2006 when the greatest sales volumes were generated.
Gas Distribution and Services Earnings
(millions of dollars)
Gas Distribution and Services earnings in 2007 reflected colder than normal weather in 2007 compared with significantly warmer than normal weather in 2006 as well as customer growth in 2007. These increases were partially offset by derivative losses in Aux Sable and lower contributions from the Energy Services businesses.