RÉPONSE DE GAZ MÉTRO À UNE DEMANDE DE RENSEIGNEMENTS Origine : Demande de renseignements n o 1 en date du 19 août 2010 Demandeur : Association pétrolière et gazière du Québec Référence : (i) Gaz Métro-1,Document 2 (English Translation), pages 22 23 Section 3.2.1 Unit price by volume within the territory Préambule : Gaz Métro has discussed its proposal for establishing the unit price by volume delivered within the territory. 30.1 Please confirm that in establishing the delivery charges for volumes delivered within the territory: (a) (b) (c) (d) the costs to be charged will be the Category D category of costs; the only Category D costs to be allocated are those costs, if any, which are paid by Gaz Métro to TCPL/TQM to move gas from one Consumption zone to another Consumption zone as a result of the consumption by the Consumer customers within the original Consumption zone being less than the quantity of gas being injected at all receipt points located in the original Consumption zone minus any gas being injected at such receipt points which are to be delivered outside the territory; the Category D costs to be allocated to any particular Consumption zone will be allocated to each Producer that is delivering gas to Gaz Métro at a receipt point located in that Consumption zone other than a Producer which is delivering all of its gas outside the territory; and the Category D costs to be allocated to any particular Consumption zone will be allocated on a variable or commodity charge basis to each Producer that is delivering gas to Gaz Métro at a receipt point located in that Consumption zone based on the quantities of gas delivered for each such Producer for delivery inside the territory. Yes for all questions a) to d). Page 1 de 6
Oui, pour toutes les questions a) à d). 30.2 Will the "unit price by volume delivered within the territory" be established in advance or will it only be established after the fact once the actual Category D costs and Producer volumes are determined for a Billing Month and please explain when Gaz Métro will make changes in this unit price and how such changes will be communicated to the Producers? The unit price by volume delivered within the territory will be established during Gaz Métro s annual rate case and will be fixed until the next rate case. Le taux unitaire au volume livré en territoire sera établi au cours de la cause tarifaire annuelle de Gaz Métro et sera en vigueur jusqu à la prochaine cause tarifaire. 30.3 Does Gaz Métro agree that the "unit price for volume delivered within the territory" would likely be different for each Consumption zone and would vary from month to month and if not, please explain why not? Yes, the unit price for volume delivered within the territory will be different for each consumption zone. While the actual costs may vary on a monthly basis during the year, the unit price for volume delivered within the territory will not vary since such price will be set in Gaz Métro s rates. Gaz Métro rates are approved on an annual basis by the Régie. Les coûts réels peuvent varier mensuellement au cours d une année. Toutefois, les taux unitaires pour les volumes livrés en territoire ne varieront pas puisque ces taux seront établis aux tarifs de Gaz Métro. Ces tarifs sont approuvés annuellement par la Régie. Page 2 de 6
30.4 What process would Gaz Métro propose in order that the Producers which are bearing Category D costs can be advised of Gaz Métro's particular TCPL/TQM requirements and the arrangements to be entered into by Gaz Métro giving rise to such Category D costs? Gaz Métro files its supply plan annually with the Régie. Gaz Métro s forecasted TCPL/TQM requirements would be included in the supply plan. Interested parties may request intervener status in a rate case filing. Le plan d approvisionnement gazier est déposé annuellement à la Régie. Les prévisions des besoins de capacité sur TCPL/TQM seraient incluses au plan d approvisionnement. Les parties intéressées peuvent demander le statut d intervenant dans le cadre d une cause tarifaire. 30.5 Will the Régie have any oversight over the prudency of any arrangements entered into by Gaz Métro with TCPL/TQM respecting the TCPL/TQM capacity to be contracted for by Gaz Métro to transport gas between Consumption zones and if not, please explain why not? Under reserve of representations that Gaz Métro might have related to the scope of the jurisdiction of the Regie towards the content of the transportation agreements with TCPL/TQM, Gaz Métro submits that such a question, as drafted, has to be answered by the Régie. Sous réserve des représentations que Gaz Métro pourrait effectuer quant à l étendue de la juridiction de la Régie à l endroit du contenu des arrangements contractuels conclus auprès de TCPL/TQM, Gaz Métro soumet qu il appartient à la Régie de répondre à cette question, telle que libellée. 30.6 If Gaz Métro is proposing to contract for TCPL/TQM capacity to transport gas between Consumption zones based on supply and demand forecasts, what tools will Gaz Métro utilize in order to minimize the risk associated with contracting TCPL/TQM capacity Page 3 de 6
based on forecasts and thus minimize any unutilized demand charges on TCPL/TQM and minimize the Category D costs? Gaz Métro always attempts to minimize its costs. Gaz Métro must however also insure that it does have the capacity to serve its customers including managing the receipt of natural gas injected into its system. If Gaz Métro is able to contract TCPL/TQM capacity on a punctual basis to serve its operational needs, it will do so. If, however, Gaz Métro feels that it is necessary to contract on a longer term basis to secure the TCPL/TQM capacity and secure its ability to serve its customers, it will equally do so. Gaz Métro will adapt its supply plan in consideration of the transportation services available. Gaz Métro tente de minimiser ses coûts en tout temps. Par contre, elle doit également s assurer qu elle a la capacité de desservir sa clientèle, ce qui inclut la gestion de la réception de gaz naturel injecté dans son réseau. Si Gaz Métro peut contracter ponctuellement sur TCPL/TQM afin de rencontrer ses besoins opérationnels, elle le fera. Par contre, si Gaz Métro croit qu il est requis de contracter à plus long terme afin de sécuriser la capacité sur TCPL/TQM ainsi que sécuriser sa capacité à desservir sa clientèle, elle le fera également. Gaz Métro ajustera son plan d approvisionnement selon les services de transport disponibles. 30.7 Prior to entering into any arrangement with TCPL/TQM to transport gas between Consumption zones, would Gaz Métro first canvas the Producers to determine whether any Producer may have TCPL/TQM capacity which it could assign to Gaz Métro on either a temporary or permanent basis and if not, please explain why not? If the transportation capacity required is available in the secondary market, Gaz Métro will consider this option whether such capacity is held by a producer or a marketer. Gaz Métro however believes it is unlikely that such capacity would be held by other parties since it expects such capacity to be point specific and it does not see a need for another party to hold capacity between two points within its territory. Dans le cas où la capacité de transport requise est disponible sur le marché secondaire, Gaz Métro considérera cette option peu importe que cette capacité soit détenue par un producteur ou un courtier. Gaz Métro considère toutefois qu une telle capacité serait détenue par d autres joueurs puisqu elle s attend à ce que cette capacité soit liée à des points précis et ne voit pas le besoin qu un autre joueur détienne de la capacité entre deux points au sein de son territoire. Page 4 de 6
30.8 Has Gaz Métro identified any changes which may be required on its gas system to allow for the transportation of gas between Consumption zones e.g. change in piping or valves to allow a reverse flow, and if not, when does it expect that the nature of and any necessary changes and the costs associated therewith would be determined? This determination will be made on a case by case basis when Gaz Métro receives specific requests. Upon the receipt of such a request, Gaz Métro will evaluate the expected flow of gas on its system and the modifications that could be required. Cette évaluation sera établie au cas par cas lorsque Gaz Métro recevra des demandes spécifiques. Au moment où ces demandes seront reçues, Gaz Métro évaluera le niveau attendu des flux sur son réseau et les modifications qui seraient requises. 30.9 How would the costs of any changes to Gaz Métro's system to accommodate the transportation between Consumption zones be allocated among the various Consumption zones? The costs to upgrade Gaz Métro s network in order to move the natural gas from a specific Consumption zone to TQM s network will be allocated to Producers in the specific zone. Les coûts requis pour améliorer le réseau de Gaz Métro dans le but de permettre d acheminer le gaz naturel d une zone de consommation spécifique au réseau de TQM seront alloués aux producteurs de cette zone spécifique. 30.10 Would the costs of any changes to Gaz Métro's system to accommodate the transportation between Consumption zones which are allocated to any particular Consumption zone be allocated as a Category D cost in accordance with the procedure described in QOGA-Gaz Métro IR 30.1(c) and IR 30.1(d) and if not, please explain why not? Page 5 de 6
Yes. Oui. Page 6 de 6