R-6.01, r. 1 - Regulation respecting the conditions under which and the cases in which a supply contract entered into by the electric power distributor must be approved by the Régie de l’énergie

Updated to 1 September 2012

This document has official status.

chapter R-6.01, r. 1

Regulation respecting the conditions under which and the cases in which a supply contract entered into by the electric power distributor must be approved by the Régie de l’énergie

Act respecting the Régie de l’énergie

(chapter R-6.01, s. 114).

1. The electric power distributor must obtain the approval of the Régie de l’énergie before entering into an electric power supply contract for a term exceeding 1 year, from the scheduled start of deliveries to the end.

An application for approval must be filed with the Régie at least 90 days before the date of coming into force of the contract, unless the electric power distributor shows to the Régie that special circumstances prevented it. That period is 60 days for contracts to be awarded following the electric power distributor’s first tender solicitation.

The application must include the contracts and must contain the following information:

(1)  a description of the contribution of each contract to the supply plan and, where the tender solicitation is filled by several contracts, a description of the contribution of each contract to the tender solicitation;

(2)  where the tender specifications provide that all or part of the needs of Québec markets met by a particular source of electric power supply must be supplied out of an energy block determined by regulation of the Government, a description of the contribution of each contract to the energy block determined by regulation of the Government, to the supply plan, and to the tender solicitation where it is filled by several contracts;

(3)  a description of the guarantees provided for in the contracts to cover financial risks and risks related to supply adequacy, as well as an analysis of the residual risks;

(4)  the demonstration that the contract or the combination of contracts carries the lowest price, for the quantity of electric power and the conditions stipulated, taking into account the applicable transmission cost and, where the tender specifications provide that all or part of the needs of Québec markets met by a particular source of electric power supply must be supplied out of an energy block determined by regulation of the Government, the demonstration that the lowest price does not exceed the maximum price established by regulation of the Government, if the Government decides to establish such maximum price;

(5)  a report comparing the prices of the contract, of the combination of contracts, or of each contract included in the combination of electric power supply contracts with the prices of the main products available on America’s northeastern markets and the applicable transmission costs;

(6)  the demonstration that the characteristics of the contracts approved in the supply plan are met; and

(7)  where applicable, the actions taken by the electric power distributor following the report prepared by the Régie in the exercise of its power to monitor the tender solicitation and contract awarding procedure and code of ethics.

O.C. 1354-2002, s. 1.

2. The electric power distributor must obtain the approval of the Régie before entering into an electric power supply contract for a term of between 3 months and 1 year, from the scheduled start of deliveries to the end, and for which the tenderer is the only one that has taken part in the tender solicitation, where all the tenderers are associated or affiliated with one another or with the electric power distributor, or where the lowest tenderer is associated or affiliated with the electric power distributor.

An application for approval must be filed with the Régie at least 5 days, excluding the days listed in article 6 of the Code of Civil Procedure (chapter C-25), Saturdays and 24 and 31 December, before the date of coming into force of the contract, unless the electric power distributor proves to the Régie that special circumstances prevented it.

The application must include the contracts and must contain the following information:

(1)  the demonstration that the contract or the combination of contracts carries the lowest price, for the quantity of electric power and the conditions stipulated, taking into account the applicable transmission cost;

(2)  a report comparing the prices of the contract, of the combination of contracts, or of each contract included in the combination of electric power supply contracts with the prices of the main products available on America’s northeastern markets and the applicable transmission costs; and

(3)  where applicable, the actions taken by the electric power distributor following the report prepared by the Régie in the exercise of its power to monitor the tender solicitation and contract awarding procedure and code of ethics.

For the purposes of the first paragraph, the tenderer of a supply contract referred to in the last paragraph of section 2 of the Act respecting the Régie de l’énergie (chapter R-6.01) is deemed to be affiliated with the electric power distributor.

O.C. 1354-2002, s. 2.

3. The electric power distributor must obtain the approval of the Régie before entering into a comprehensive general agreement with a supplier for multiple electric power supplies that has been exempted from tender solicitation by the Régie under the Act respecting the Régie de l’énergie (chapter R-6.01).

An application for approval must be filed with the Régie at least 90 days before the date of coming into force of the agreement, unless the electric power distributor proves to the Régie that special circumstances prevented it.

The application must include the agreement and must contain the following information:

(1)  a description and forecast of the specific needs referred to in the agreement;

(2)  the demonstration that the characteristics of the agreement approved in the supply plan are met;

(3)  the prices of the transactions or a description of the method used to determine the prices of the transactions, as the case may be; and

(4)  the demonstration that the agreement meets the conditions of the exemption granted by the Régie.

O.C. 1354-2002, s. 3.

4. (Omitted).

O.C. 1354-2002, s. 4.

REFERENCES

O.C. 1354-2002, 2002 G.O. 2, 6207