CALGARY, Alberta (Reuters) - Enbridge Inc (ENB.TO) said on Wednesday it will take a C$262 million ($265 million) after tax charge on value of its New Brunswick gas-distribution unit after the provincial government cut the rates the company can charge consumers.
Enbridge, Canada’s No. 2 pipeline company and its largest gas distributor, said the rates that came into effect on April 16 cut the value of its C$460 million investment in the province.
New Brunswick’s government moved to limit rates because, it claimed, the province’s consumers are now paying among the highest natural gas rates in North America and have not benefited from decade-low prices for the fuel because prices are tied to alternative fuels like heating oil.
Enbridge shares fell 35 Canadian cents to C$40.94 on the Toronto Stock Exchange on Wednesday
($1 = $0.99 Canadian)
Reporting by Scott Haggett; Editing by Bernard Orr