The Fixed Price Program

Gaz Metro initiated the Fixed Price Program (the "Program") to allow relatively small gas consumers to manage their natural gas costs with the use of fixed prices. The Program received regulatory approval from the Quebec energy regulator, the Régie de l'énergie, in October 2003.

Natural gas prices have been high and extremely volatile over the past several years, exposing gas users to unexpected cost increases. Large gas users have been able to manage their exposure to volatile gas supply costs through what are known as direct purchase arrangements. These arrangements with independent suppliers like Integrys Energy provide gas users with the ability to manage price fluctuations with the use of fixed prices and other price management tools. But smaller gas users have encountered difficulties in finding suppliers willing to serve their more modest supply needs under direct purchase arrangements. Smaller customers have had little choice but to purchase their gas supply requirements from Gaz Metro. Gaz Metro's price is based on its average gas acquisition costs and can change monthly depending on the behaviour of market prices. Gaz Metro is unable to offer individual customers gas supply at a specific fixed price for regulatory and other reasons. It developed this Program to help you acquire gas supply at a fixed price from an independent supplier.

How the Program Works

If you participate in the Program, Gaz Metro will continue to deliver all your gas requirements with the same reliability and commitment it does today. In fact, Gaz Metro will remain your official gas supplier and you will continue to be served under Gaz Metro's gas supply tariff approved by the Régie. But Gaz Metro will now be able to offer you a fixed gas supply rate as an alternative to the regular variable rate. The new fixed rate will be equal to the price Gaz Metro pays to acquire gas from a specific supplier (the supplier you select) at the fixed price you and your supplier agree on.

By participating in the Program, you are not really purchasing gas supply from an alternate supplier. You are selecting a supplier who will deliver and sell to Gaz Metro all the gas you consume at a fixed price. Gaz Metro will then resell that gas to you at the same fixed price.