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Enbridge Gas New Brunswick
The Company owns 70.8% of, and operates, Enbridge Gas New Brunswick (EGNB), which owns the natural gas distribution franchise in the province of New Brunswick. EGNB is constructing a new distribution system and has approximately 8,200 customers. Approximately 645 kilometres (400 miles) of distribution main has been installed with the capability of attaching approximately 29,000 customers.
Results of Operations
EGNB earnings were $12.1 million for the year ended December 31, 2007 compared with $9.8 million for the year ended December 31, 2006. Earnings were higher in 2007 due to the impact of the increasing ratebase.
EGNB earnings were $9.8 million for the year ended December 31, 2006 compared with $6.1 million for the year ended December 31, 2005. Earnings were higher in 2006 as debt was settled through the issuance of equity during the third and fourth quarters of 2005 resulting in a higher equity base throughout 2006.
EGNB is regulated by the New Brunswick Energy and Utilities Board (EUB). As it is currently in the development period, EGNB's cost of service exceeds its distribution revenues. The EUB has approved the deferral of the difference between distribution revenues and the cost of service during the development period for recovery in future rates. This recovery period is expected to start in 2010 and end no sooner than December 31, 2040. On December 31, 2007, the regulatory deferral asset was $117.7 million (2006 – $101.8 million).