R-3709-2009 Application
COST ALLOCATION STUDY
Original : 2009-10-02
AEE-4, Document 2
Page 1 of 20
R-3709-2009 Application
TABLE DES MATIÈRES
1
PROPOSED METHODOLOGY ............................................................................... 5
1.1 Determination of Revenue Requirement .................................................................. 5
1.2 Funding Source and Allocation by Energy Source ................................................... 6
1.2.1 Regulated Programs ....................................................................................... 8
1.2.2 Activities Related to the Development of the Comprehensive Plan ................. 9
1.2.3 Activities Related to the Administration of the Agency .................................. 10
1.2.4 Complementary Activities to Non-Administrative P/As .................................. 11
1.2.5 Proposal no. 1 ............................................................................................... 13
1.3 True-Up Based on Actual Costs ............................................................................. 14
2
DETERMINATION OF A RELATIONSHIP BETWEEN THE CATEGORIZATION
OF PROGRAMS, THEIR BENEFICIARIES, AND THE ASSOCIATION WITH A RATE
AND A DISTRIBUTOR FOR NATURAL GAS AND ELECTRICITY ............................. 15
2.1 Choice of an Allocation Approach .......................................................................... 15
2.2 Association with the Rate Classes of Energy Distributors ...................................... 17
2.3 Proposal no. 2 ......................................................................................................... 20
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1
PROPOSED METHODOLOGY
2
In the scope of its request for approval of the Comprehensive Plan in Energy Efficiency and
3
New Technologies (“Plan d’ensemble en efficacité énergétique et nouvelles technologies”), and
4
for its annual budget application, the Agency must present its revenue requirement allocated by
5
energy source. The methodology used to determine this revenue requirement, as well as the
6
approach proposed to allocate it by energy source, are presented in the following section.
7
8
1.1
9
The overall annual budgetary forecasts of the Agency are made up of the revenue requirement
10
Determination of Revenue Requirement
related to the following five types of programs1 and activities (P/As):
11
12

Regulated programs: programs in operation, in pilot project phase or in design phase, of
13
which the terms and the budget, which comes from the quota [translator’s note: the quota is
14
the sum of the Distributors’ annual shares of AEE expenses], are filed with the Régie de
15
l’énergie (Régie) for approval (e.g., Novoclimat and the Program for Implementation
16
Assistance for Efficient Measures in Buildings Program);
17
18

Unregulated programs: programs in operation, in pilot project phase or in design phase, for
19
which the terms and the budget, which comes from a funding source other than the quota,
20
are not filed with the Régie for approval (e.g., OPTER and the Program for Support of the
21
Manufacturing Sector related to the 2006-2012 Action Plan on Climate Change (PACC));
22
23

Activities related to the development of the Comprehensive Plan: activities related to
24
the development of the Comprehensive Plan, for which the budget, which comes from the
25
quota, is filed with the Régie for approval (e.g., consultations or hearings at the Régie);2
26
27

Complementary activities: activities related to the monitoring and the delivery of the three
28
types of P/As presented above, for which a part of the budget is financed by the quota and
29
filed with the Régie for approval (e.g., customer service);3
1
The term program refers to programs and interventions of the Agency.
These activities are included in the common costs (“tronc commun”) of the Agency.
3
These activities are included in the common costs (“tronc commun”) of the Agency.
2
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
Administrative activities: activities related to the management and daily operations of the
2
Agency, for which a part of the budget is financed by the quota and filed with the Régie for
3
approval (e.g., general expenses related to rent or to capital expenditure);4
4
5
For each P/A, the Agency makes an annual projection, where applicable, of the revenue
6
requirement for the following three categories of expenses:
7
8

remuneration: expenses anticipated in person-years;5
9

operating costs: expenses anticipated in development, operations, marketing, monitoring
and evaluation;
10
11

financial assistance: expenses anticipated for financial assistance generally established as
12
a function of the projected number of participants and the unit financial assistance to be
13
granted.
14
15
For each P/A, the total amount projected for these three expense categories corresponds to the
16
P/A’s revenue requirement. The Agency’s overall annual budget corresponds to the sum of the
17
revenue requirements for all of the Agency’s P/As.
18
19
1.2
Funding Source and Allocation by Energy Source
20
21
The Agency’s overall annual budget is mainly financed by the quota, the Green Fund (“Fonds
22
vert”) and the federal government. The funding source selected for a P/A is determined
23
according to the following rule:
24
25

if it is related to one of the action of the Action Plan on Climate Change (PACC), for which
the Agency has responsibility, the funding source is the Green Fund;
26
27

if it is related to a federal initiative, the funding source is the federal government;
28

if it stems from the Comprehensive Plan, the funding source is the quota.
4
These activities are included in the common costs (“tronc commun”) of the Agency.
It is proposed that the expenses anticipated for non-administrative P/As (i.e. regulated programs, unregulated
programs, activities related to the development of the Comprehensive Plan and complementary activities) be
evaluated according to their full costs, i.e. by including salaries, marginal benefits and a lump sum by full-time
equivalent (FTE), determined on the basis of the revenue requirement necessary for the administrative activities of
the Agency.
5
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2
As an example, Table 1 presents a mock overall budget for the Agency. This budget is made up
3
of a revenue requirement for Program 1 (stemming from the Comprehensive Plan); Program 2
4
(related to the PACC) and Program 3 (related to a federal initiative), as well as a revenue
5
requirement for Activity 1 (related to the development of the Comprehensive Plan), Activity 2
6
(related to the administration of the Agency) and Activity 3 (complementary to Programs 1, 2
7
and 3, and to Activity 1). The revenue requirement specific to each of these P/As is directly
8
associated with its funding source, according to the rule described above, with the exception of
9
the revenue requirement related to Activities 2 and 3, which will be subjected to a special
10
allocation.6
11
Table 1: Mock Annual Budget for the Agency
12
Program / Activity
Expense Category
Program 1 (Comprehensive Plan (Type 1))
Remuneration
Operating Costs
Financial Assistance
Total
Program 2 (PACC (Type 2))
Remuneration
Operating Costs
Financial Assistance
Total
Program 3 (Federal Initiative (Type 2))
Remuneration
Operating Costs
Financial Assistance
Total
Funding Source
Quota
Green Fund
Federal
Gov’t
Total
$350,000
$1,800,000
$8,500,000
$350,000
$1,800,000
$8,500,000
$10,650,000
$10,650,000
$165,000
$845,000
$3,990,000
$165,000
$845,000
$3,990,000
$5,000,000
$5,000,000
$100,000
$500,000
$2,400,000
$100,000
$500,000
$2,400,000
$3,000,000
$3,000,000
13
14
6
The revenue requirement for these activities is intended for the Agency’s daily operations, and for the monitoring or
the delivery of the other P/As, whatever their funding source. Consequently, this revenue requirement must be
shared among the funding sources at the prorata of the efforts that will be made specifically for each source.
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Programme / Activity
Expense Category
Activity 1 (Development of the Comprehensive
Plan (Type 3))
Remuneration
Operating Costs
Financial Assistance
Total
Activity 2 (Administration of the Agency (Type
5))
Remuneration
Operating Costs
Financial Assistance
Funding Source
Quota
Green Fund
Federal
Gov’t
Total
$50,000
$200,000
$0
$50,000
$200,000
$0
$250,000
$250,000
Total
Activity 3 (Complementary (Type 4))
Remuneration
Operating Costs
Financial Assistance
Total
$1,200,000
$1,400,000
$0
$2,600,000
$300,000
$450,000
$0
$750,000
2
3
Only the revenue requirement associated with the quota must be subjected to a subsequent
4
allocation by energy source. The following sub-sections present the proposed approach for the
5
allocation of P/As, which are partly or fully funded by the quota, i.e. the regulated programs, the
6
activities related to the development of the Comprehensive Plan, the activities related to the
7
administration of the Agency, and complementary activities to non-administrative P/As.
8
9
10
1.2.1 Regulated Programs

The allocation of the revenue requirement for remuneration and operating costs of the
11
regulated programs in operation or in the pilot project phase, is done, insofar as possible, on
12
the basis of the number of participants projected by energy source. Given the case where
13
this information is not known, the number of participants projected by energy source is
14
estimated in a temporary manner on the basis of the energy balance specific to the sector or
15
the sub-sector targeted, or on the basis or any other data that would provide a better
16
estimate of the number of participants to project by energy source.
17
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For regulated programs in the design phase, the allocation of the revenue requirement for
2
remuneration and operating costs is done on the basis of an energy balance specific to the
3
targeted sector. Depending on the cost driver, the energy balance used can be based on
4
volume or on the number of consumers by energy source. In the same way, this balance
5
can be weighted should there be a case where certain sub-sectors or energy sources are
6
specifically targeted by certain P/As in the design phase.
7
8
9
10

The allocation of the revenue requirement for financial assistance is done on the basis of the
number of participants projected by energy source and the unit financial assistance granted
according to the energy source.
11
12
As an example, Table 2 presents the allocation by energy source of the revenue requirement for
13
Program 1 (stemming from the Comprehensive Plan). The revenue requirement for
14
remuneration and operating costs is allocated on the basis of the number of participants
15
projected by energy source, while the revenue requirement for financial assistance is
16
determined and allocated on the basis of this same information, with a uniform unit assistance
17
of $5,000 for all the energy sources.
18
19
Table 2: Allocation by Energy Source of the Revenue Requirement for Program 1
Revenue Requirement Funded by the Quota
Electricity
Program 1
(Comprehensive Plan
(Type 1))
Remuneration
Operating Costs
Financial Assistance
Total
Number of projected
participants
Natural Gas
Heavy Fuel
Light Fuel
Gasoline
Diesel
Propane
Total
$133,824
$688,235
$3,250,000
$4,072,059
$102,941
$529,412
$2,500,000
$3,132,353
$0
$0
$0
$0
$72,059
$370,588
$1,750,000
$2,192,647
$0
$0
$0
$0
$0
$0
$0
$0
$41,176
$211,765
$1,000,000
$1,252,941
$350,000
$1,800,000
$8,500,000
$10,650,000
650
500
0
350
0
0
200
1,700
20
21
1.2.2 Activities Related to the Development of the Comprehensive Plan
22
The allocation of the revenue requirement for remuneration and operating costs of the
23
activities related to the development of the Comprehensive Plan is done on the basis of the
24
energy balance specific to the sector or the sub-sector targeted. Depending on the cost
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driver, the energy balance used can be based on volume or on the number of consumers by
2
energy source. In the same way, this balance can be specific [translator’s note: we can
3
assume that specific in this case also implies weighted specifically, but this is not explicitly
4
stated], should there be a case where certain energy sources or sectors of activity are
5
specifically targeted.
6
7
As an example, Table 3 presents the allocation of the revenue requirement associated with
8
Activity 1 (related to the development of the Comprehensive Plan) according to the most up-to-
9
date overall Quebec energy balance available.7
Table 3: Allocation by Energy Source of the Revenue Requirement for Activity 1
10
Revenue Requirement Funded by the Quota
Electricity
Natural
Gas
Heavy
Fuel
Light
Fuel
Gasoline
Diesel
Propane
Total
Activity 1 (Development of
the Comprehensive Plan
(Type 3))
Remuneration
$23,152
$7,202
$1,938
$1,929
$9,941
$5,401
$436
$50,000
Operating Costs
$92,609
$28,809
$7,753
$7,715
$39,766
$21,605
$1,743
$200,000
Financial Assistance
Total
Overall Quebec Energy
Balance
$0
$0
$0
$0
$0
$0
$0
$0
$115,762
$36,012
$9,691
$9,644
$49,707
$27,006
$2,179
$250,000
46.30 %
14.40 %
3.88 %
3.86 %
19.88 %
10.80 %
0.87 %
100 %
11
12
1.2.3 Activities Related to the Administration of the Agency
13

The revenue requirement for the Agency’s administrative activities is integrated in the
14
expenses anticipated for remuneration in the non-administrative P/As as a lump sum by
15
FTE.8 The allocation of the revenue requirement for administrative activities is therefore
16
done simultaneously with the allocation of the revenue requirement of non-administrative
17
P/As, according to the approach and the factor that are specifically associated with this
18
allocation.
7
For the purposes of this example, it is assumed that Activity 1 applies the consumers of all sectors of activity,
whatever the energy source consumed. This being the case, the use of the overall Quebec energy balance is
justified.
8
This lump sum is established annually from the ratio between the revenue requirement for the Agency’s
administrative activities and the number of FTEs that will be assigned to the non-administrative P/As.
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1
For the purposes of the current example, we will assume that the remuneration expenses
2
anticipated for Programs 1, 2 and 3, as well as for Activities 1 and 3, were estimated according
3
to their full costs, i.e. including the lump sum by FTE. The revenue requirement for Activity 2 is
4
therefore presented in Table 1 for information purposes only.
5
6
1.2.4 Complementary Activities to Non-Administrative P/As
7

The allocation the revenue requirement for remuneration and operating costs of
8
complementary activities stems from the allocation of the revenue requirement of the four
9
other types of Agency P/As. More specifically, the allocation factor used is built in order to
10
reflect the relative importance of the revenue requirement for remuneration and operating
11
costs of the four other types of P/As, which have previously been allocated to each funding
12
source and to each energy source.9 10
13
14
As an example, the approach proposed to allocate the revenue requirement for complementary
15
activities can be presented in two steps. First, as presented in Table 4, the total amount for
16
remuneration and operating costs associated with each funding source is used to determine the
17
relative importance of the efforts to be made with respect to this funding source. The breakdown
18
that results from this calculation provides the derivation of a first allocation factor by funding
19
source, which can be applied to the revenue requirement for Activity 3.
Table 4: Relative Importance by Funding Source
20
Program / Activity
Expense Category
Program 1 (Comprehensive Plan (Type 1))
Remuneration
Operating Costs
Financial Assistance
Total
Program 2 (PACC (Type 2))
Remuneration
Operating Costs
Financial Assistance
Total
Funding Source
Quota
Green Fund
Federal
Gov’t
Total
$350,000
$1,800,000
$8,500,000
$350,000
$1,800,000
$8,500,000
$10,650,000
$10,650,000
$165,000
$845,000
$3,990,000
$165,000
$845,000
$3,990,000
$5,000,000
$5,000,000
21
9
The efforts made to grant financial assistance are not necessarily proportional to amount granted. Consequently,
the revenue requirement for financial assistance is not taken into account in the determination of the derived factor.
10
Given the case in which certain P/As are specifically targeted by a complementary activity, an allocation factor
specific to these P/As is derived.
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Program / Activity
Expense Category
Funding Source
Quota
Green Fund
Program 3 (Federal Initiative (Type2))
Remuneration
Operating Costs
Financial Assistance
Total
Activity 1 (Development of the Comprehensive Plan (Type 3))
Remuneration
Operating Costs
Financial Assistance
Total
Agency P/As - Total
Remuneration
Operating Costs
Financial Assistance
Total
Derived Factor – Funding Sources
Activity 3 (Complementary (Type 4))
Remuneration
Operating Costs
Financial Assistance
Total
Federal
Gov’t
Total
$100,000
$500,000
$2,400,000
$100,000
$500,000
$2,400,000
$3,000,000
$3,000,000
$50,000
$200,000
$0
$50,000
$200,000
$0
$250,000
$250,000
$400,000
$2,000,000
-
$165,000
$845,000
-
$100,000
$500,000
-
$665,000
$3,345,000
-
$2,400,000
$1,010,000
$600,000
$4,010,000
59.85 %
25.19 %
14.96 %
100 %
$179,551
$269,327
$0
$75,561
$113,342
$0
$44,888
$67,332
$0
$300,000
$450,000
$0
$448,878
$188,903
$112,219
$750,000
2
3
Then, the portion that has been allocated to the quota in the manner described above is
4
subjected to an allocation by energy source. In this way, as presented in Table 5, the total
5
amount for remuneration and operating costs associated with each energy source is used to
6
determine the relative importance of the efforts to be made with respect to them [translator’s
7
note: “them” seems to refer to the energy sources, but the sentence is ambiguous]. The
8
breakdown that results from this calculation provides the derivation of a second allocation factor
9
by energy source, which can be applied to the revenue requirement for Activity 3, previously
10
allocated to the quota.
11
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R-3709-2008 Application
Table 5: Relative Importance by Energy Source
1
Funding Source
Program / Activity
Expense Category
Program 1 (Comprehensive Plan (Type
1))
Remuneration
Operating Costs
Financial Assistance
Total
Activity 1 (Development of the
Comprehensive Plan (Type 3))
Remuneration
Operating Costs
Financial Assistance
Total
P/As funded by the quota - Total
Remuneration
Operating Costs
Financial Assistance
Total
Derived Factor - Energy Sources
Activity 3 (Complementary (Type 4))
Remuneration
Operating Costs
Financial Assistance
Total
Quota
Electricity
Natural Gas
Heavy
Fuel
Light Fuel
Gasoline
Diesel
Propane
Total
$157,500
$810,000
$3,250,000
$87,500
$450,000
$2,500,000
0
0
0
$59,500
$306,000
$1,750,000
$0
$0
$0
$0
$0
$0
$45,500
$234,000
$1,000,000
$350,000
$1,800,000
$8,500,000
$4,217,500
$3,037,500
0
$2,115,500
$0
$0
$1,279,500
$10,650,000
$23,152
$92,609
$0
$7,202
$28,809
$0
1,938
7,753
0
$1,929
$7,715
$0
$9,941
$39,766
$0
$5,401
$21,605
$0
$436
$1,743
$0
$50,000
$200,000
$0
$115,762
$36,012
9,691
$9,644
$49,707
$27,006
$2,179
$250,000
$180,652
$902,609
-
$94,702
$478,809
-
1,938
7,753
-
$61,429
$313,715
-
$9,941
$39,766
-
$5,401
$21,605
-
$45,936
$235,743
-
$400,000
$2,000,000
-
$1,083,262
$573,512
9,691
$375,144
$49,707
$27,006
$281,679
$2,400,000
2.07%
1.13 %
45.14 %
23.90 %
0.40 %
15.63 %
11.74 %
$81,042
$121,563
$0
$42,906
$64,359
$0
$725
$1,088
$0
$28,066
$42,098
$0
$3,719
$5,578
$0
$2,020
$3,031
$0
$21,073
$31,610
$0
$179,551
$269,327
$0
$202,605
$107,265
$1,813
$70,164
$9,297
$5,051
$52,683
$448,878
2
3
1.2.5 Proposal no. 1
4
The Agency proposes that the annual revenue requirement by energy source, presented within
5
the scope of its request for the approval of the Comprehensive Plan in Energy Efficiency and
6
New Technologies, and for its annual budget application, be determined and allocated
7
according to the methodology presented in Section 1 of the current document.
8
9
The determination of the amount of the quota payable to the Agency by each of the energy
10
distributors and the association of this amount to the different rate classes is not the
11
responsibility of the Agency.
12
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Indeed, according to Article 3 of Section 85.25 of the Act Respecting the Régie de l'énergie
2
(R.S.Q., c. R-6.01), hereafter referred to as “the Act”, the Régie determines the amount of the
3
quota payable to the Agency by each energy distributor. Energy distributors are the only entities
4
that can associate this amount with their different rate classes, so that the Régie can take into
5
account the rate impact of the annual amount (Article 2 of Section 85.25 of the Act) that they
6
[distributors] allocate to energy efficiency, which includes, in particular, the quota payable to the
7
Agency (Section 85.28 of the Act). However, in order to allow the energy distributors to make
8
the best allocation possible of the quota by rate class, the Agency also deals with this aspect in
9
the current document and will integrate information relative to rate classes in the scope of its
10
applications for the approval of the Comprehensive Plan, its annual budget applications and its
11
status reports.
12
13
1.3
True-Up Based on Actual Costs
14
15
As precise as the allocation exercise may be for the revenue requirement during the
16
determination of the annual budget forecast, this exercise must be reviewed at the end of a
17
given period. Thus, the allocation initially undertaken is trued up based on the actual costs
18
committed to remuneration, operating costs and financial assistance.
19
20
With respect to remuneration, the time allocated by P/A and by energy source is subject to daily
21
monitoring by each of the Agency’s staff members. Thus, at the end of a given period, the
22
allocation undertaken under the budgetary method (“mode budgétaire”) is trued up in order to
23
take into account the actual time spent. Under the actual method (“mode réel”), only the actual
24
costs, for which an energy source cannot be specifically associated, are allocated on the basis
25
of the factor associated with the P/A.11
26
27
With respect to operating costs, actual expenses for the development, operations, marketing,
28
monitoring and evaluation of a P/A are specifically associated with energy sources targeted on
29
the basis of specific expenses. Under the actual method, only the actual costs, for which an
11
Under the actual method, the factors associated with the P/As are built on the basis of the participation results by
energy source, or on the basis of energy balances and other data that are the most up-to-date possible at the
moment of their construction [translator’s note: presumably, the construction or building of the factors in question].
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energy source cannot be specifically associated, are allocated on the basis of the factor
2
associated with the P/A.
3
4
With respect to financial assistance, the participation results by energy source, as well as the
5
amounts actually granted in the scope of the Agency’s different P/As, are used to allocate the
6
actual costs to each energy source.
7
8
2
DETERMINATION OF A RELATIONSHIP BETWEEN THE CATEGORIZATION OF
PROGRAMS, THEIR BENEFICIARIES, AND THE ASSOCIATION WITH A RATE AND A
9
DISTRIBUTOR FOR NATURAL GAS AND ELECTRICITY
10
11
The choice of allocation approach to use for a P/A, for which funding is entirely or partially
12
derived from the quota, should be made as a function of the objective sought and the
13
consumers targeted.
14
energy distributors of the amounts of quota payable to the Agency, the rate classes of potential
15
beneficiaries for each P/A should be identified.
Likewise, in order to allow for the most direct allocation possible for
16
17
2.1
Choice of an Allocation Approach
18
In order to choose the approach to use to allocate a P/A’s revenue requirement, the Agency
19
proposes the following steps:
20
21

Determine if the P/A is operational or in pilot project phase during the period.

If yes, use the allocation approach based on the number of participants projected by energy
22
23
24
source. If this information is not known, estimate the number of participants projected by
25
energy source on the basis of the energy balance specific to the sector targeted or on the
26
basis of any other data that would provide a better estimate of the number of participants to
27
project by energy source.
28
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R-3709-2008 Application
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If no, determine if the P/A relates to energy efficiency or new technology, for which the
2
objective is to save energy or to favour technological innovation in energy,12 [or] if it is an
3
administrative activity or a complementary activity.
4
5
In the case of a P/A related to energy efficiency or new technology, for which the objective is
6
to save energy or to favour technological innovation in energy, use the allocation approach
7
based on the energy balance. Determine the following:
8
1.
the sector targeted;
9
2.
the sub-sector targeted;
10
3.
the energy source specifically targeted and its relative importance;
11
4.
the cost driver.
12
13
Based on this information, identify a recognized data source providing the information on the
14
energy balance of the targeted sector, or even the targeted sub-sector, according to the cost
15
driver.13
16
17
Given the identification of more than one data source, consult the energy distributors in
18
order select the most precise source.
19
20
Given the case in which no source can provide the needed information, estimate, in
21
collaboration with other energy distributors, the relative importance of each of the energy
22
sources in the energy balance of the sector or even sub-sector targeted.
23
24
Once the energy balance has been selected, determine the relative importance of the
25
energy sources specifically targeted by the P/A and use this information to allocate its
26
revenue requirement.
27
28
In the case of an administrative activity, integrate its revenue requirement in the calculation
29
of the lump sum by FTE.
30
12
13
It can, for example, be a program in the design phase, or it can also include communications activities.
The data can also come from the energy distributors.
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R-3709-2008 Application
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
In the case of a complementary activity, use a factor derived from the allocation of the
revenue requirement of the P/As for which this activity is complementary.
2
3
4
A diagram summarizing the steps for the choice of an allocation approach for a given P/A is
5
presented in Appendix 1.
6
7
2.2
8
In parallel with the exercise presented in Section 2.1, the Agency identified, in collaboration with
9
the regulated energy distributors, the rate classes to which potential beneficiaries of the different
10
Association with the Rate Classes of Energy Distributors
P/As are likely to belong.
11
12
For information purposes, Table 6 presents customers potentially targeted, as well as rate
13
classes potentially associated with the Agency’s different sectors of activity.
14
15
Table 6: Customers Potentially Targeted and Rate Classes Potentially Associated with
16
the Agency’s Different Sectors of Activity
17
Sectors Identified
Distributors
Customers
Potentially Targeted
Rate Classes
Potentially Associated
Residential: Made up of consumers using one or several sources of energy for domestic purposes (low-income
households, owners and renters, future buyers, promoters, contractors and architects).
HQD
Residential (including Low Income)
D (including DM), DT, DH
Gaz Métro
Residential (including Low Income)
D1 (level 1)
Gazifère
Residential (including Low Income)
2
18
19
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R-3709-2008 Application
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Sectors Identified
Distributors
Customers
Potentially Targeted
Rate Classes
Potentially Associated
Affaires : Made up of consumers within the areas of commercial, institutional and municipal activity, using one or
several energy sources for varied purposes (small and medium-sized businesses (retail sales), business in the service
industry, office buildings, institutional field, health and social services network, education network, public sector and
municipalities).
HQD
Commercial, institutional
and Small and Medium-Sized Industries
(SMIs)
G, G9, M, L, H
Gaz Métro
Commercial, institutional and multi-unit
dwellings (4 units or more) from the
business and large enterprise markets
D1, DM, D3, D4, D5
Commercial, institutional, multi-unit
dwellings and SMIs
1, 2, 3, 4, 8, 9
Gazifère
Transportation: Made up of consumers, who use fuel in light and heavy vehicles (car drivers, drivers of heavy
vehicles, fleet managers, and users of public transportation).
HQD
-
-
Gaz Métro
-
-
Gazifère
-
7
Industrial : Made up of industries that are large energy consumers and of SMIs using energy in their processes,
equipment, etc. (industries that are large energy consumers, manufacturing industries (transformation) and other
industries including small and medium-size industries). [translator’s note: the redundancy here reflects the original
text].
HQD
Gaz Métro
Gazifère
Industrial : SMIs and large industries
G, G9, M, L, H
Industrial enterprises from the business
and large enterprise markets
D1, DM, D3, D4, D5
Industrial, institutional
1, 3, 4, 5, 6, 8, 9
2
3
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R-3709-2008 Application
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Sectors Identified
Distributors
Customers
Potentially Targeted
Rate Classes
Potentially Associated
New technologies: Made up of energy consumers that could take advantage of measures supporting the research,
the development, the demonstration, pre-marketing and the deployment of new energy technologies in energy
efficiency and in new energy production (technology enterprises, research centres, enterprises specialized in the
production of emerging energies and users of emerging energies).
HQD
Customers from all sectors are potentially
targeted.
D (including DM), DT, DH, G, G9, M, L, H
Gaz Métro
Customers from all sectors are potentially
targeted.
D1, DM, D3, D4, D5
Gazifère
Customers from all sectors are potentially
targeted.
1,2,3,4,5,6,7,8,9
Common costs (“tronc commun”): Made up of activities intended for the development of the Comprehensive Plan,
complementary activities to the other P/As, as well as administrative activities of the Agency.
HQD
Customers from all sectors are potentially
targeted.
D (including DM), DT, DH, G, G9, M, L, H
Gaz Métro
Customers from all sectors are potentially
targeted.
D1, DM, D3, D4, D5
Gazifère
Customers from all sectors are potentially
targeted.
1,2,3,4,5,6,7,8,9
2
3
We note that for multisectoral P/As, i.e. those intended for more than one sector of activity, the
4
customers potentially targeted, as well as the rate classes potentially associated, are meant to
5
be a combination of the information relative to the sectors of activity specifically targeted.
6
Likewise, for the P/As of a regulatory nature, these are a function of the sector(s) of activity(ies)
7
having to do with regulation.
8
9
The information presented in Table 6, being of a very general nature, does not allow for the
10
precise association between the Agency’s P/As and the rate classes of the regulated energy
11
distributors. In order to allow for the most direct allocation possible for energy distributors of the
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R-3709-2008 Application
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amounts of quota, the Agency therefore proposes that this association be made according to
2
the following approach:
3
4

for a P/A with a history of participation, the identification of the rate classes should be made
on the basis of information collected during the years of operation;
5
6
7
8

for a P/A with no history of participation, the rate classes of the potential beneficiaries should
be identified on a case by case basis in collaboration with regulated energy distributors.
9
10
Under the actual method, the databases compiling information relative to Agency’s different
11
P/As, will identify insofar as possible, the rate classes of participants, as well as the volume that
12
they consume annually. This information could then be used to refine the association between
13
the revenue requirement of the Agency’s P/As and the rate classes of the regulated energy
14
distributors.
15
16
2.3 Proposal no. 2
17
The Agency proposes that the choice of an allocation approach for a P/A, for which the funding
18
comes from the quota, as well as the association between these P/As and the rate classes of
19
the regulated energy distributors, be made in conformity with the approaches presented in
20
Section 2 of the current document.
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