Société en commandite Gaz Métro
Cause tarifaire 2008, R-3630-2007
R ÉPONSE DE G AZ M ÉTRO À UNE DEMANDE DE RENSEIGNEMENTS
Origine : Demande de renseignements n o
1 en date du 7 juin 2007
Demandeur : Association des consommateurs industriels de gaz
Référence : Dr. Paul Carpenter’s Evidence
Préambule :
With reference to Dr. Carpenter’s discussion of assurance that the utility will be allowed to earn a fair ROE on page 13.
Questions :
6.1. a) Please provide the allowed and earned ROE for Gaz Metro from 1997, b) Please also provide the allowed and actual ROE for Union Gas and Enbridge Gas
Distribution for whom Dr. Carpenter testified in 2006 for the same period. c) On the basis of this ability to earn their allowed ROE since 1997 please rank Gaz
Metro relative to the two Ontario gas LDCs.
Réponses :
6.1.a)
Gaz Métro Allowed ROE
(without incentive)
Gaz Métro Allowed ROE
(including incentive)
Gaz Métro Earned ROE
(including incentive)
1997 11.50%
1998 10.75%
1999 9.64%
11.90%
11.09%
10.22%
2000 9.72% 10.06%
2001 9.60% 10.38% 10.38%
2002 9.67% 9.69% 10.67%
2003 9.89% 10.34% 10.82%
2004 9.45% 10.96% 11.47%
2005 9.69% 11.64% 10.52%
Original : 2007.06.19
Révisé : 2007.08.03
Gaz Métro – 7, Document 9.6
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Société en commandite Gaz Métro
Cause tarifaire 2008, R-3630-2007
6.1.b) Dr. Booth appears to possess this information for 1997 – 2005 for EGDI and for 1997 –
2004 for Union. See Schedule 2 of “Business Risk and Capital Structure for Enbridge
Gas Distribution Inc. (EGDI), Evidence of Dr. Laurence D. Booth Before the Ontario
Energy Board, November 2006, On Behalf of The Consumers Council of Canada (CCC),
Industrial Gas Users Association (IGUA), and the Vulnerable Energy Consumers
Coalition (VECC)” from OEB Docket No. EB-2006-0034.
6.1.c) Dr. Carpenter would not use this information to rank relative risk, because business risk is a forward-looking market concept, and these data represent historical accountingbased returns.
Original : 2007.06.19
Révisé : 2007.08.03
Gaz Métro – 7, Document 9.6
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Société en commandite Gaz Métro
Cause tarifaire 2008, R-3630-2007
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2
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7
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9
Evidence of
Dr. Laurence D. Booth
10
11
12
13
14
Before The
Ontario Energy Board
November 2006
On Behalf
15 of
16
17
The Consumers Council of Canada (CCC), Industrial Gas Users Association
(IGUA), and the Vulnerable Energy Consumers Coalition (VECC)
Original : 2007.08.03
Gaz Métro - 7, Document 9.6
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Société en commandite Gaz Métro
Cause tarifaire 2008, R-3630-2007
Schedule 2
Earned vs Allowed ROEs
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Allowed
13.25
13.13
13.13
12.30
11.60
11.65
11.88
11.50
10.30
9.51
9.73
9.54
9.66
9.69
9.69
9.57
11.01
EGDI
Actual
13.60
13.29
13.40
14.43
12.49
12.66
13.14
13.00
11.97
10.77
10.83
10.03
11.81
13.14
10.66
9.46
12.17
1.16
Allowed
13.50
13.50
13.00
12.50
11.75
11.75
11.75
11.00
10.44
9.61
9.95
9.95
9.95
9.95
9.62
UNION
Actual
13.40
12.50
13.70
14.30
12.14
12.12
12.52
12.26
11.14
10.10
10.11
11.45
12.36
12.08
10.45
Allowed
12.25
na
10.65
12.00
11.00
10.25
10.00
9.25
9.50
9.25
9.13
9.42
9.15
Terasen
Actual
9.06
11.91
9.73
12.03
11.80
11.27
9.41
10.70
10.75
9.38
10.03
10.23
9.46
Over
11.21
12.04
0.83
10.15
10.44
0.29
Terasen data is from the company’s response to the BCUC information request #1 in the BCUC review of its adjustment mechanism. The data for EGDI is from VECC #45 and that for Union from Appendix B Schedule 10 of the pre-filed testimony of Dr. William Cannon in RP-2002-0158 updated with interrogatory answer J2-31.
2
Original : 2007.08.03
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