Blue bulletin

Énergir and the Régie de l’énergie interact on an ongoing basis to discuss various projects. Énergir’s applications with the Régie de l’énergie have increased so much that they have actually doubled over the past 10 years. In addition to their increase in number, they are also increasingly complex and detailed.

Each year, Énergir presents a rate case and an annual report to the Régie. Moreover, for any investment project over $1.5 million, such as a network extension, a pipeline relocation at the request of the Ministère des Transports du Québec, an IT or any other project, Énergir is required to submit a file to the Régie for approval. This is in addition to other files submitted throughout the year on specific subjects not handled in a rate case, for example, the pricing vision and renewable natural gas. The Régie must therefore examine all these files, which affects the length of time required to make a decision for each of them.

Note that Énergir also intervenes in affairs outside Québec at both the federal (National Energy Board) and provincial levels (Ontario Energy Board), particularly with a view to protecting the interests of its customers.

Pricing vision
One of the subjects submitted to the Régie concerns the pricing vision. This case is divided into four main phases:

1. Allocation of distribution costs
2. Review of supply, transportation and load-balancing services
3. Profitability of new sales
4. Distribution rate structure

The different phases are addressed in parallel and are subject to an in-depth analysis by the Régie and the various groups of stakeholders who represent customers. Moreover, Énergir and the stakeholders have solicited the assistance of several external experts. The revision of the interruptible offer is part of phase 2 and Énergir is currently awaiting a procedural timetable regarding this phase.

For details of the various cases currently under review by the Régie, visit the Régie de l’énergie’s website.

Maybe you have already heard about the “recommissioning” of mechanical systems in buildings. This is an energy-saving strategy that applies to heating and ventilation equipment. The literature mentions potential energy savings of between 5% and 15% compared with the initial energy consumption. Furthermore, energy savings measures generally provide a return on investment in less than one year.

Énergir offers a program for recommissioning with financial assistance of up to $54,000. In order to be eligible, an accredited agent, i.e. an engineer with specific training, must be involved in your project. This agent will supervise the following steps required for the analysis and completion of the recommissioning project:

1. Planning and investigation: Definition of the project objectives, energy profile, identification of energy-saving measures. Up to $25,000 in financial assistance may be awarded for this step.
2. Implementation of the previously identified measures. The maximum amount of financial assistance is $25,000 for this step.
3. Monitoring: The third step is the continuous monitoring of the persistence of the measures implemented. The maximum amount for this step is $4,000.
   
   

Download the Participant’s Guide

Become an accredited agent
Please contact us if you would like to become an accredited building mechanical systems recommissioning agent, and based on interest, a session for a group of a dozen people may be organized in Québec.

Since the beginning of the summer, there has been a downward trend in the price of natural gas at Dawn. As at the time of writing, in early October 2017, the spot price is $3.15.
In August and September, the North American continent faced three major hurricanes, including Harvey, which hit the Gulf of Mexico and deep-sea drilling platforms head on. However, unlike the large hurricanes that have already hit this region—for example, hurricanes Dennis, Katrina and Rita in 2005—Harvey did not have a tangible impact on the price of natural gas.




The vulnerability of the gas market in the wake of hurricanes has been significantly reduced by moving production to major continental gas fields such as Marcellus/Utica in the Appalachians. In 2005, gas production in the Gulf of Mexico accounted for 17% of total U.S. production, compared with 4% today. As for Marcellus/Utica, operations began in 2009 and currently represent 28% of total production.

Medium-term price trend
With regard to price forecasts for this winter, the price at Dawn was $3.72 according the financial market on October 4. Canadian storage sites are currently 92% full, which is higher than the average for the past five years. Of course, the severity of the weather this winter will have the last word in determining which path prices will take over the coming months.

2017 is the last year of the second compliance period of the Greenhouse Gas Cap-and-Trade System (CATS) in Québec. Companies that are subject to this system have until November 1, 2018 to submit through their Compliance Instrument Tracking System Service (CITSS) account the emission allowances covering all emissions declared from 2015 to 2017.

Do you have emission units that exceed your needs that you wish to sell? Today, Énergir is issuing a new call for interest to purchase emission units from its heavy emitter customers who want to dispose of units that exceed their needs. The emission units may have been purchased at auctions or by way of mutual agreement transactions, or have been obtained free from the Québec government. Énergir invites you to discuss offers that could translate into short-term emission unit transactions, where applicable.

For any questions or to indicate your interest, please send an email to Hugo Levert, Carbon Market Senior Advisor, or call him at 514 598-3186.