2018 rate case: New proposed rates

As part of the 2018 rate case, Gaz Métro submitted the proposed rates for 2017-2018 to the Régie de l’énergie on March 1. If they are approved:
  • The distribution rates would increase on average by 3.3%;
  • The transportation rate would decrease by 11%: It would be 3.757¢/m³ ($0.991/GJ);
  • The load-balancing rates would increase by 35.6%.

Overall, for the range of transportation, load-balancing, distribution, inventory adjustment and CATS services, the 2018 rate case translates to a 3.7% increase in rates.

If the Régie approves this new proposal, all changes would be effective as of October 1, 2017.
Distribution Transportation
Load-balancing
  • Increase in the amortization of deferred charges (+)
  • Increase in the amortization of assets (+)
  • Decrease in GEEP-related expenses (-)
  • Increase in volumes (-) 
  • Move to Dawn (-)
  • Significant shortfalls to recover in 2017 compared to 2018 (-)
 
  • Significant shortfall of $30.7 million to recover in 2018 compared to a $7.2 million overpayment to remit to customers in 2017 (+)
  • Changing profiles (+)

Follow-up on the interruptible offering

Gaz Métro is still waiting for a response as to the offers proposed to the Régie de l’énergie in spring 2016 regarding the interruptible offer. These offers include:
  • Abolishing Rate D5 and implementing transitory measures;
  • Adding a new “Interruptible” component to the load-balancing service, with a seasonal option and a peak option;
  • Compensation based on fixed and variable credits (based on the number of interruption days).

Should the Régie reach a favourable decision in the short term, Gaz Métro believes that these offers could be implemented in October 2018.

Save with the sun

Did you know that starting today, you can be more energy efficient and reduce your greenhouse gas (GHG) emissions, thanks to technologies that use renewable energy? Not only can solar energy produce electricity with photovoltaic solar panels, it can also preheat the ventilation air of buildings.

Depending on your building's type and the activities taking place there, a minimum amount of fresh outdoor air must brought in. In the winter, this air must be heated so as not to affect occupants’ comfort. To meet this need while reducing energy consumption directly linked to building ventilation, thermal solar panels can be installed.

What are thermal solar panels?
These are structures installed on an outdoor wall that gets the most sun exposure, and certain models can even go on the building’s roof. The air between the building’s structure and wall is heated by the sun, and its temperature can increase from 5 to 30 °C based on weather conditions and on panel type and installation. This preheated air is then drawn in by the natural gas ventilation system.

Gaz Métro offers a solar air preheating program with up to $200,000 in financial assistance available, and which can generate natural gas savings assessed at $2/m3. Energy savings and project profitability are calculated using a RETScreen simulator developed by Natural Resources Canada.

In 2016, seven customers took part in our program for a saving of 205,000 m3.

Consult our program’s Participant’s Guide

Please feel free to contact us to plan a visit to your facilities, at which time we can discuss future energy-efficiency projects.

Call for interest: Purchase of emission units - deadline April 21

In order to cover its needs under the Cap and trade system for greenhouse gas emission allowances (CATS) while reinvesting the funds in Québec, Gaz Métro would like to buy emission units from customers who are large emitters and who would like to dispose of the emission units that exceed their needs. These may have been acquired through auctions or mutual agreement transactions, or obtained free of charge from the Québec government.

Gaz Métro is therefore issuing a new call for interest to discuss offers that could translate into short-term emission unit transactions, where applicable.

For any questions or to indicate your interest, contact Hugo Levert, Carbon Market Senior Advisor, by email or by phone at 514 598-3186.

Did you know

In the fall of 2016, Gaz Métro announced that it had acquired the offset credits generated by WSP Canada Inc. as part of projects to collect and destroy biogas from four landfills in Québec. The technology installed by WSP will bring about a permanent reduction of GHG emissions equal to some 140,000 metric tonnes of CO2 equivalents over the term of the agreements. For Gaz Métro, this partnership reflects our commitment to helping achieve Québec’s environmental targets while making long-term investments in our business partners in Québec.

  The price of natural gas

This winter, like many others, the natural gas market was strongly influenced by atypical weather. While November and December ended with heating degree days that were very close to normal, January and February were much warmer than the average for the past 30 years. These months were even warmer than last winter, which had been hit with a very strong El Niño current.
This situation led to a sudden drop in natural gas prices at Dawn at the end of December due to forecasts of substantial warming in January, and prices continued to steadily decline thereafter. On December 27, 2016, the natural gas spot price at Dawn was $5.79/GJ, while in late February, it was $3.28/GJ.
What can we expect over the coming months?
Overall, natural gas surpluses in the continental market were significantly lower due to a decrease in production in the United States, and an increase in liquified natural gas (LNG) exports and in exports to Mexico. At Dawn, however, an increase in supply is expected, especially over the next year, which should theoretically put downward pressure on prices in that regard.

On February 22, 2017, TCPL reissued a call for tenders for a long-term fixed-price (LTFP) transportation service between Empress and Dawn. The service was established so that gas in Western Canada could compete with Marcellus/Utica gas at the Dawn hub. The LTFP rate is $0.77/GJ, compared with $1.83/GJ for the regular rate on the Empress-Dawn section. The call for tenders concluded on March 9, 2017, and received commitments of 1.5 PJ/day, which was the target TCPL was seeking so as to implement this service. The term of the contracts is 10 years, with commissioning planned for November 1, 2017.

In addition to the increased supply at Dawn from Western Canada, we expect to see an increase in gas flows from Marcellus/Utica. The Rover project was approved by the FERC in February and, according to its proponent Energy Transfer, also has a commissioning planned for November 1, 2017. This new gas pipeline will significantly increase Eastern Canada’s capacity to buy from the Appalachian supply basins. Rover is a pipeline project with a total capacity of 3.25 Bcf/d between Clarington and Defiance, Ohio, with another 1.3 Bcf/d segment between Defiance and Dawn. It should also be noted that the Nexus project, which is planning to transport 1.5 Bcf/d to Dawn, is also likely to increase the amount of natural gas available at Dawn. However, this project has not yet been authorized by the FERC.

As at March 31, the “future” prices at Dawn were $4.16/GJ for summer 2017, and $4.47/GJ for winter 2017-2018.