October 16, 2007 - Press releases
Montreal, October 16, 2007 – Gaz Métro Limited Partnership (TSX: GZM.UN, "Gaz Métro") announces that the Régie de l’énergie ("Régie") rendered a decision on its rate application for the 2008 fiscal year for the Quebec distribution activity.
The Régie’s decision accepted some of Gaz Métro’s requests and not others.
In its decision, the Régie chose to modify certain parameters of the formula presently used to establish the rate of return allowed on Partners’ deemed common equity fixing it at 9.05% for the 2008 fiscal year, an increase over the 8.91% rate of return the formula applied to date would have produced.
However, the Régie did not retain the new model proposed by Gaz Métro as the method for establishing the authorized rate of return. According to the Régie, application of that model to regulated utilities has not been sufficiently examined by other regulatory bodies to be used as the basis for fixing a distributor’s rate of return.
The overall impact of the decision will be quantified in the updated application that will be filed by Gaz Métro on October 23. The Régie will then render its decision on the tariffs for the 2008 fiscal year.
Gaz Métro Overview
With more than $3.1 billion of assets and more than 1,500 employees in Quebec, Gaz Métro is a leading Quebec energy company and one of Canada’s largest natural gas distributors. Gaz Métro serves about 167,000 customers in Quebec through an underground pipeline network of almost 10,000 km.
Through its wholly-owned subsidiary, NNEEC, Gaz Métro has been active in New England’s energy industry since 1986 and has nearly 300 employees there. NNEEC includes Vermont Gas Systems, the sole gas distributor in Vermont, and Green Mountain Power Corporation, the second largest electricity distributor in that State.
Through investments in wholly-owned subsidiaries or in partnerships with other investors, Gaz Métro is active in natural gas transportation and storage as well as energy services and water and waste water systems and fibre optic networks. Gaz Métro also participates in various development projects in the energy sector.
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