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The Blue Bulletin

Major Industries

October 2020 Edition

Follow-up on regulatory and rate cases

Good news: On May 26, the Régie de l’énergie approved the characteristics of a renewable natural gas (RNG) purchase contract proposed by Énergir.

2020-2021 rate cases

To facilitate the acquisition of RNG at a reasonable and attractive price for customers wishing to use it, Énergir proposed the characteristics of an RNG purchase contract to the Régie de l’énergie in August 2019. On May 26, as part of the development of the short-term RNG supply strategy, the Régie approved the proposed characteristics:

  • Average cost of all contracts less than or equal to $15/GJ, indexed to CPI (Individual contracts with individual suppliers may be below or above $15/GJ, provided the average cost is respected)
  • Volumes provided for in the contract less than or equal to 1% of the volumes planned for the 2020–2021 rate year
  • Maximum contract term of 20 years

This leeway means that Énergir is now authorized to enter into RNG supply contracts that meet these conditions without having to seek approval from the Régie on a case-by-case basis (unless one of the conditions is not met).

The next step in the RNG development file is to examine the pricing strategy surrounding the product, as well as to demonstrate the interest of Énergir customers in the product. Evidence to this effect was filed with the Régie on July 31, 2020.

Read the other subjects from this Blue Bulletin

Natural gas price outlook
Lactalis: Optimizing its energy performance and reducing its environmental footprint
Énergir responsible natural gas procurement initiative
C&T market newsView all subjects