1981 to 1989 : RÉGIE DE L'ÉLECTRICITÉ ET DU GAZ DU QUÉBEC

The "Régie" is a public utilities board responsible for regulating the rates and tariffs of all the natural gas distributed in Québec ( more than one billion dollars worth per year)

As chairman of this quasi-judiciary tribunal, my responsibilities covered:

- the current administration of the board's affairs,

- the holding of public hearings relative to extensions to the gas distribution grid in Québec, to mergers and acquisitions of gas companies, and to the authorization of gas tariffs and rates.

- the timely production of the board's orders,

- and the drafting of proposals for changes in the institutional infrastructure of the board and in the content of its enabling legislation,

In carrying out these duties I became a rate and tariff expert and was personally responsible for several regulatory innovations of which the following can be mentioned:

- the deferment of inclusion in rate base of a part of the infrastructure costs of Gaz Inter-Cité Québec inc. during the initial years of operation of this new company in the early '80's. This allowed the establishment of competitive rates for gas east of Montreal at a time when the replacement of imported oil by canadian natural gas was a national strategic objective.

- the approval of several programs subsidizing the conversion from oil to natural gas in order to promote a rapid growth of the use of canadian natural gas and thereby reduce our dependency on imported oil.

- the development of new regulatory procedures involving a forward test year coupled with set of stabilizing accounts designed to offset the random effects of unpredictable variations of factors such as temperature, lost and unaccounted for gas and short-term interest rates on the distributors financial results.

- the adoption, as integral part of these new regulatory procedures, of an excess earnings account designed to retain excessive windfall profits for the benefit of the consumer.

- the adoption of a standardized rate structure for the four gas distributors then active in Quebec after having held an extensive generic hearing on the subject.

- the computerization of the board operations and the development of several computer programs designed to enhance decision making in rate cases.

- the adoption of a detailed set procedures for distribution cost of service analysis after having held an extensive generic hearing on the subject.

- the approval of the merger of "Gaz Inter-Cité Québec inc." and "Le Gaz Provincial du Nord de Québec Ltée" with "Gaz Métropolitain inc." in 1985.

- and the development and adoption of new regulatory procedures applicable to the transport and distribution of natural gas following the "deregulation" of the sale of this form of energy in Canada since 1985.