R-3709-2009 Application
Answer to Régie IR 3.1
in No. 1 Régie Information Request Series
ANSWER BY THE AGENCE DE L’EFFICACITÉ ÉNERGÉTIQUE
TO RÉGIE INFORMATION REQUEST 3.1
IN NO. 1 RÉGIE INFORMATION REQUEST SERIES
Original: 2009-12-3
AEÉ-9, Document 1
Page 1 of 7
R-3709-2009 Application
Answer to Régie IR 3.1
in No. 1 Régie Information Request Series
Régie IR 3.1 (AEÉ 9, Document 1)
3.
Reference: Exhibit B-1, AEÉ-2, Document 8.
Preamble:
The AEÉ requests that the budget for common costs (“tronc commun”) increase
from $9.9 M in 2009-2010 to $17.8 M in 2010-2011, which represents an
increase of 79%. However, this document does not outline the explanations and
justifications on which the AEÉ is basing its request. Moreover, this document
does not include a continuity schedule to explain nomenclature modifications for
the cost centres.
Question:
3.1 Please provide detailed explanations and justifications of the requested
budget increases. The level of detail provided should allow for the evaluation of
the requested budget.
Answer:
The detailed explanations and justifications of the requested budget increases
are presented below for each of the cost centres of the common costs (“tronc
commun”).
Planning and Design of the Comprehensive Plan
This budget cost centre is intended for all the inherent work in the preparation of
the Comprehensive Plan. With respect to remuneration, the Agency has planned
for the hiring of two new employees: an economist specialized in economic
regulation for 2010-2011 and a second employee of whom 20% of the work load
is attributed to this budgetary cost centre with the balance attributed to the
“Consultation” cost centre.
With respect to operating costs, in addition to the sectoral market studies and the
technical/economic potential studies, the Agency will conduct a detailed market
study of the energy efficiency and new energy technologies industry. The costs
related to carrying out this study are estimated at $425,000.
Also, the Agency must proceed with the development of a strategy for motor
fuels and heating fuels. An amount of $300,000 is budgeted to for this purpose.
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R-3709-2009 Application
Answer to Régie IR 3.1
in No. 1 Régie Information Request Series
Consultation
With respect to remuneration, as described above, the Agency plans to proceed
with the hiring of a resource of whom 80% of the workload is dedicated to
consultations, and to setting up and monitoring of the permanent consultation
tables.
With respect to professional fees, planned under the line item “Operating Costs”,
the variance can be explained by the fact that the Agency henceforth relies on
the services of specialists in the scope of the consultation work with intervenors
in the energy efficiency field and in the scope of the main Agency/Distributors
Committee.
It should also be noted that the communications expenses inherent to the
consultation activities were imputed to this budget cost centre in past financial
years. Such expenses are now budgeted under the “Communications Support”
cost centre.
Monitoring System
There are no significant modifications for this cost centre.
Hearings at the Régie
The increase in the remuneration budget for this cost centre is due to the fact
that the Agency hired a lawyer to plead for the entire regulatory filing.
With respect to operating costs, there was an increase in the professional fees
budget relative to 2009-2010 based the history of this cost centre in 2008-2009
and 2009-2010. These expenses include, among others, the reimbursement of
intervenor fees, legal support and stenography fees.
Information and Awareness
There are no significant modifications for this cost centre.
Training and Education
The budget variance for the training and education sectors is largely attributable
to the fact that the Agency will put in place different actions derived from the
analyses undertaken in previous financial years.
Communications Support
The budget increase in the Communications Directorate is in large part
attributable to the “Communications Support” line item, which represents an
amount of $1.9 M.
Original: 2009-12-3
AEÉ-9, Document 1
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R-3709-2009 Application
Answer to Régie IR 3.1
in No. 1 Régie Information Request Series
Thus, the Agency identified an envelope of $1.2 M with the objective of ensuring
the availability of the internal support necessary to all of the directorates in order
to fulfill the Agency’s mission.
Historically, we know that the Agency could benefit from a series of opportunities
allowing for the distribution and acquisition of key information with the objective
to establish a culture of energy efficiency in Quebec. While these opportunities
are not associated with a program, they will contribute to the fulfillment of the
objectives pursued by the Agency. This could, among other things, result in the
cementing of partnerships with important players in the field of energy efficiency
or new energy technologies.
In addition, certain legal or governmental obligations incur an additional workload
from the perspective of communications support, which is hard to budget for the
Agency. As an example, we can mention the Regulation Respecting the
Distribution of Information and the Protection of Personal Information or the
obligations with respect to putting in place a Sustainable Development Action
Plan.
Finally, a part of this budget envelope ($740,000) will be attributed to elements
relative to certain operations of the Agency, such as the logistics associated with
setting up the different Agency consultations, the preparation of the
documentation filed at the Régie de l’énergie, in addition to costs related to the
distribution of the Comprehensive Plan. Previously, these activities were included
under the line item “Planning and Design of the Comprehensive Plan”.
Legal
Between 2008-2009 and 2010-2011, the significant budget increase for the
“Legal” line item can be explained by the establishment of a new administrative
structure in November 2009 constituting a new directorate, i.e. the Directorate of
Legal and Regulatory Affairs. The expenses associated with this line item relate
only to the legal affairs component. The budget for the regulatory component of
this directorate is included in the budget presented under the line item “Hearings
at the Régie”.
In the context of the legal affairs component, the activities greatly evolved
between the periods of 2008-2009 and 2010-2011.
Indeed, 2008-2009 was characterized by the adoption by the Agency’s Board of
Directors of a Contractual Policy specific to the Agency as provided for in the Act
Respecting the Implementation of an Energy Strategy in Quebec and Modifying
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AEÉ-9, Document 1
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R-3709-2009 Application
Answer to Régie IR 3.1
in No. 1 Régie Information Request Series
Several Legal Measures, as well as the establishment of administrative
procedures related to this policy. For this period, head count dedicated to the
legal affairs component was approximately 1.5 FTEs.
For the period of 2009-2010, the budget presented to Régie did not take into
account the future administrative structure, which explains the readjustment of
the budget during the year, a budget of which the Régie was advised during the
production of Exhibit AEÉ-20.1, Document 4, June 12 [sic] A director was named.
A staff member (technician) was transferred in February 2009 to the Legal and
Regulatory Affairs Directorate. Until that point, the staff member worked part-time
for Legal, the Comprehensive Plan and Agency Communications. The need for
the services of a legal secretary was also confirmed and therefore such a
resource was hired in February 2009.
Moreover, the seconded lawyer joined the team during the period until last
September and a new lawyer was hired in May 2009.
These staff additions can be explained by an increase in activities and the
broadening of the mandates under the responsibility of this directorate. In
particular, this directorate received the mandate to write and implement a new
Complaints Policy, as well as to ensure the establishment of the Regulation
Respecting the Distribution of Information, which provides for many new
obligations (regulation enacted last November 29).
The 2010-2011 budget takes into account the growing volume of activity and the
efforts required to carry out all of the mandates under the responsibility of this
directorate by providing for the addition of two staff members (a technician and a
lawyer). Insofar as the mandates, as well as the volume of activity of this
directorate remain more or less the same as those for 2009-2010, the Agency
believes that the head count number assigned to this directorate should remain
stable.
Administration
The explanations for the budget variances for the “Administration” line item are
presented below as a function of the different elements that make up this line
item.
General Directorate of Management Services
Customer Service and Operations Service:
Customer Service and Operations Service (SCO) is a new directorate,
established during the 2009-2010 year. During the first year, the mandates and
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AEÉ-9, Document 1
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R-3709-2009 Application
Answer to Régie IR 3.1
in No. 1 Régie Information Request Series
the responsibilities of the SCO were determined, as well as an action plan, which
was derived from these.
The $80,000 increase in remuneration in 2010-2011 is explained by the hiring of
systems administrator and customer service specialist, but is partly offset by a
new allocation of the existing personnel.
Human Resources
The human resource budget reflects continuity with that of 2009-2010 with the
exception of an increase in the expenses planned for employee training. The
training budget, as percentage of remuneration, goes from 1% in 2009-2010 to
2% in 2010-2011, that is an increase of $90,000.
Material and Financial Resources Directorate
First, we specify that the budget for this directorate also includes the budgets
required for information resources.
The Material and Financial Resources Directorate has completed the staff hiring
necessary to successful functioning during the 2009-2010 period. The salary
increase of approximately $110,000 for 2010-2011 with respect to 2009-2010 is
explained by the hiring of a director and staff additions, of which some were hired
during the 2009-2010 period, throughout the 2010-2011 period. [Translator’s
note: presumably they mean “of which some were hired during the 2009-2010
period, and others throughout the 2010-2011 period” though these words are
missing in the French original.]
During the 2010-2011 period, the Ministry of Natural Resources and Wildlife will
reclaim the office space currently occupied by the Agency in Quebec, and this,
by the end of September 2010 at the latest. The budget increase for operating
costs in 2010-2011 comes almost exclusively from the costs related to the this
move under the responsibility of the Société immobilière du Québec
(approximately $1.1 M) and from the increase in Quebec City rental costs (with
an approximate impact of $175,000). [Translator’s note: There is no formal
translation for Société immobilière du Québec, which can be translated
unofficially as the “Quebec Real Estate Society”, but is not translated by the
Quebec or Federal governments or in legal texts. According to the Act
Respecting the Société, the objectives of the Société are to place immovables
(real estate) at the disposal of the government departments and agencies and to
provide services to them in the construction and operation of buildings and in
property management.]
Original: 2009-12-3
AEÉ-9, Document 1
Page 6 of 7
R-3709-2009 Application
Answer to Régie IR 3.1
in No. 1 Régie Information Request Series
The increase in the 2010-2011 budget with respect to information resources is a
consequence of the repatriation of professional fees previously allocated to the
different directorates (approximately $180,000). This repatriation occurs in the
context of the restructuring exercise for the entire Agency’s information support.
Office of the President/Executive Director
With respect to remuneration, the 2010-2011 budget increase is attributable to
the addition of a strategy specialist.
With respect to the operating budget, professional fees are provided for and
affect the following:
 bearing of the costs associated with the government notices, that is
$75,000. For the 2009-2010 statement, this element was budgeted under
the line item “Government Notices” of the common costs;
 the setting up of an internal verification service for an amount evaluated at
$100,000.
Finally, a sum of $75,000 is planned for different contracts related to
organizational management of the Agency.
General Expenses for the Directorates
This line item includes the costs related to salaries for managers and their
assistant, as well as business travel and hospitality expenses. The 2010-2011
budget increase is explained almost exclusively by a staff increase, Indeed, the
establishment of a new administrative structure in 2010-2011 led to the creation
of management positions and the hiring of assistants.
Fixed Assets
As mentioned above, during the 2010-2011 period, the Ministry of Natural
Resources and Wildlife will reclaim the office space currently occupied by the
Agency in Quebec, , and this, by the end of September 2010 at the latest. A sum
of $275,000 related to the acquisition of furniture is planned to this effect.
Original: 2009-12-3
AEÉ-9, Document 1
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