Diversified business

With close to $7 billion in assets, Gaz Métro is a major energy distributor. It is the largest natural gas distribution company in Québec, where its network of over 10,000 km of underground pipelines serves some 300 municipalities and more than 200,000 customers. Gaz Métro is also present in Vermont, where it has more than 310,000 customers. The company is actively involved in developing and operating innovative, promising energy projects, including natural gas as fuel, liquefied natural gas as a replacement for higher emission-producing energies, wind and solar power, and biomethane. It is a major energy sector player that takes the lead in meeting the needs of its customers, regions and municipalities, local organizations, and communities while also satisfying the expectations of its partners (GMi and Valener) and employees.
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Our energy distribution activities encompass natural gas distribution in Québec and Vermont, as well as electricity distribution in Vermont.
Natural gas distribution
Gaz Métro
Gaz Métro distributes approximately 97% of the natural gas consumed in Québec. In order to supply its customers, the company relies on a varied portfolio of transportation and storage tools. Gaz Métro has transportation capacity on the TCPL and Union Gas systems that it uses to deliver natural gas to its exclusive service area, either from Western Canada or Dawn, in Ontario. The storage capacities contracted or owned by Gaz Métro enable it to manage fluctuations in its customers’ consumption. Gaz Métro has contracted storage capacity in Québec and at Dawn. Gaz Métro buys the natural gas required to supply its customers or receives natural gas from customers who have opted to secure their own supply of natural gas. On an annual basis, Gaz Métro submits its supply plan to the Régie de l’énergie for approval.

Gaz Métro is regulated by the Régie de l’énergie, which annually sets the transportation, load-balancing and distribution rates , as well as the supply, cap-and-trade-system (CATS) and compression rates on a monthly basis. The Régie also oversees Gaz Métro’s operating, network-development and natural gas distribution activities.

Vermont Gas Systems

Vermont Gas Systems (VGS), a subsidiary of Gaz Métro, owns and operates a natural gas transportation and distribution network of over 1,300 km in Vermont, United States. VGS is the sole gas distributor in Vermont, serving close to 50,000 mainly residential and commercial customers. VGS procures its natural gas from Western Canada and Dawn, in Ontario. The natural gas is transported and delivered via the TCPL network to its main pipeline, located on the Canada-Vermont border. VGS is regulated by the Vermont Public Service Board (VPSB), which annually approves its base rates while supply rates are adjusted each quarter using the current rate adjustment mechanism.

Electricity distribution

Green Mountain Power
Green Mountain Power (GMP), a subsidiary of Gaz Métro, is the largest electricity distributor in Vermont, serving over 70% of the market and more than 260,000 customers. GMP’s core business includes the distribution, transportation, generation, purchase and sale of electricity in Vermont and, to a minor degree, electricity transportation in New Hampshire and electricity generation in the states of New York, Maine and Connecticut. The GMP network comprises over 1,500 km of overhead transmission lines, 18,000 km of overhead distribution lines and 1,600 km of underground distribution lines, located mainly in Vermont but also extending to New Hampshire and New York. Although it produces a portion of the electricity it distributes, most of the electricity is purchased from various producers.

Its supply portfolio consists of multiple generation sources, the main one being hydroelectricity, and to a lesser extent, nuclear, wind and solar power. GMP also owns 32 hydroelectric generating stations in Vermont, which account for approximately 8% of its supply portfolio. Moreover, as the only electric utility in Vermont that owns and operates commercial-scale wind farms (through its KCW wind farm with an installed capacity of 63 megawatts located in Lowell and the Searsburg facility with an installed capacity of 6 megawatts) and given its installed capacity of 7.9 megawatts of solar power generation, GMP is the largest wind and solar power producer in the state. GMP is also actively developing other renewable energy projects, such as Cow Power, which converts manure from dairy cows into clean electric energy.

Like VGS, GMP is regulated by the VPSB. Every year, VPSB sets the electricity rates using a cost-of-service method. However, a quarterly adjustment mechanism is in place to ensure that any additional electricity supply and transmission costs or savings not anticipated during the rate-setting process, are recovered from or returned to customers.

Velco and Transco

GMP owns a significant interest in Transco and in Velco. Transco’s main activities are planning, building, operating and maintaining an electricity transmission system in Vermont. Transco owns and operates a high-voltage electricity transmission system, enabling it to offer electricity transmission services to over 17 electricity distributors in Vermont and two in New Hampshire. It also supplies electricity to New England through ISO-NE, which manages power generation and transmission operations in that region. Velco operates a transmission line used to transmit the electricity that New England electricity distributors purchase from Hydro-Québec. Velco also acts as manager of Transco, giving it the power to manage, at its discretion, Transco’s day-to-day operations. Velco and Transco are regulated by the FERC for rate-setting and financing and by other Vermont regulatory agencies for such matters as the construction of electricity transmission-related assets.
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Gaz Métro owns significant financial interests in three natural gas transportation companies: Trans Québec & Maritimes (TQM) Pipeline, Champion Pipeline and Portland Natural Gas Transmission System (PNGTS).
Trans Québec & Maritimes (TQM) Pipeline
The Company holds a 50% interest in TQM Pipeline, which operates a gas pipeline in Québec that connects upstream with that of TCPL and downstream with that of PNGTS and the Gaz Métro network. Its activities are regulated by the NEB.

Champion Pipeline

Champion, a wholly owned subsidiary of Gaz Métro, operates two pipelines that cross the Ontario border and supply Gaz Métro’s distribution system in northwestern Québec. Champion’s activities are regulated by the NEB with respect to revenue determination, tolls, construction and the operation of its network.

Portland Natural Gas Transmission System (PNGTS)
Gaz Métro also owns a 38.3% interest in the PNGTS pipeline, which starts at the Québec border and extends to the suburbs of Boston. PNGTS’s activities are regulated by the FERC.
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This segment encompasses non-regulated energy production activities related to the Seigneurie de Beaupré wind farms as well as Green Mountain Power’s activities.
Seigneurie de Beaupré Wind Farms
Wind Farms 2 and 3
Wind Farms 2 and 3 is an equal-share joint venture of Boralex and Beaupré Éole, which is, in turn, 51%-owned by Gaz Métro and 49%-owned by Valener. The core business of this joint venture consists in owning and operating two wind farms with an installed capacity of 272 megawatts on the private lands of Seigneurie de Beaupré. These wind farms were put into commercial service in the first quarter of fiscal 2014, and all of the electricity they generate is sold to Hydro-Québec, under 20-year contracts.

Wind Farm 4
Farm 4 is an equal-share joint venture of Boralex and Beaupré Éole 4, which is, in turn 51%-owned by Gaz Métro and 49%-owned by Valener. This joint venture’s core business consists in owning and operating a wind farm with an installed capacity of 68 megawatts on the private lands of Seigneurie de Beaupré. It was put into commercial service on December 1, 2014, and all of the electricity it generates is sold to Hydro-Québec under a 20-year contract.

Green Mountain Power

GMP is a leader in wind and solar energy generation in Vermont. The company owns a 7,700-panel solar farm in Vermont and two wind farms in the U.S., and has the largest hydroelectric power plant in New England.
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Through its range of subsidiaries, Gaz Métro sells, rents and offers financing and maintenance services for natural gas-powered equipment. It also transports and stores natural gas for distributors, transport companies and customers. Gaz Métro pursues complementary natural gas activities by selling goods and services in the energy sector through various companies.
Energy services
Gaz Métro LNG
Gaz Métro LNG is a subsidiary of Gaz Métro that was created to respond to the current and anticipated growth in demand in the liquefied natural gas (LNG) market. The role of Gaz Métro LNG is to structure the supply of LNG and to ensure the liquefaction capacity of the Gaz Métro LSR plant in east Montréal, and of the plant to be built by Gaz Métro LNG for markets using natural gas as fuel instead of petroleum. Through LNG, it will also meet the natural gas demand of industries in regions that are distant from the gas network, depending on their needs and distance from the network, as well as offer LNG supply solutions by truck or ship.  

Gaz Métro Energy Solutions

Gaz Métro Energy Solutions is a Gaz Métro subsidiary created in the third quarter of 2015 to ensure, among other things, LNG storage, treatment and regasification to meet the peak energy needs of the TransCanada Energy power plant in Bécancour and similar projects.

Gaz Métro Transport Solutions

Gaz Métro Transport Solutions, a Gaz Métro subsidiary, is Québec’s leader in alternative fuels, both in an advisory role to companies and with respect to its deployment of fuelling stations. Transport Solutions was created to develop a market for compressed and liquefied natural gas as a fuel in the heavy transportation sector and as a cleaner alternative to diesel fuel. The company provides turnkey solutions to owners of vehicle fleets and guides them through their initiatives to transition from diesel to natural gas. To further develop the market for natural gas as fuel, Transport Solutions has also developed the Blue Road, a natural-gas refuelling network for heavy transportation vehicles in Québec and Ontario.

Gaz Métro Plus

Gaz Métro Plus, a subsidiary of Gaz Métro, is a leader in energy products and services. Its range of products satisfy customer needs with respect to the installation, sale, rental, repair and maintenance of natural gas equipment. Gaz Métro Plus is also active in the residential, commercial and institutional markets.

CCUM

CCUM, an equal-share joint venture of Gaz Métro and Dalkia Canada Inc., owns and operates three distinct steam, hot water and cold water networks used to heat and cool commercial buildings. Its three-kilometre network serves 1.8 million square metres of varied facilities and meets the energy needs of one third of the commercial space in downtown Montréal.

Storage

Gaz Métro owns an interest in Intragaz, whose main activity is underground natural gas storage. This activity fits within Gaz Métro’s overall mission, as natural gas storage is an integral part of its supply chain. The respective ownership interests of Gaz Métro and ENGIE (formerly GDF SUEZ), the other co-owner of Intragaz, range from 40% to 60% depending on the entities that make up Intragaz.

Intragaz operates the only two underground natural gas storage facilities in Québec in Gaz Métro’s service area, and Gaz Métro is also Intragaz’s only customer. Its rates are approved by the Régie and established on a cost-of-service basis.
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