Express Blue Bulletin
New rates for fall 2022
The rates proposed by Énergir were filed with the Régie de l’énergie on May 13 and are pending approval, with an intended application date on October 1, 2022.
Summary of changes
The 2022 2023 Rate Case proposes an overall rate increase of 7.8%, broken down as follows:
- 8.5% increase in distribution rates
- 6.4% increase in transportation rates
- 6.3% increase in load-balancing rates, and
- 13.5% increase in cap-and-trade system inventory adjustments.
The rate adjustments to the distribution, transportation and load-balancing services are explained below.
For 2022-2023, the increase in distribution rates can mainly be explained by:
- The increase in the depreciation expenses in the deferred expense account (DEA), chiefly due to the amounts to be recovered in the 2022-2023 rates because of the higher temperatures in 2021, the increased depreciation of IT development projects, and the increase in the balances to be recovered from customers related to revenue decoupling.
The increase in the rate for the transportation service is caused mostly by:
- The shortfall noted during the 2020-2021 year-end closing, whose recovery is included in the 2022-2023 Rates Case. This shortfall comes from the exceptional 3-year extension of deferred expenses to attenuate in part the impact this shortfall would have had on the increase in the transportation rate in the 2021-2022 Rates Case.
- The application of a new functionalization method that calls for recovering the return on the rate base and a tax on revenue in transportation through the transportation rate.1
1 D-2021-109 rendered in File R-3867-2013
The rate increase for the load-balancing service comes principally from:
- An increase in load-balancing costs, essentially due to the elimination of a DEA related to the combination of fixed premiums for the storage site, which caused a one-time depreciation expense, and the acquisition of a winter transportation tool functionalized in the load-balancing.
- The application of a new functionalization method for costs, which transfers the entire value of supply inventories to load-balancing.