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1. Gaz Métro Fixed Price Program

On a gas user's utility bill, only the commodity of natural gas is subject to market price variations. Historically, only larger clients consuming more than 1,000,000 m³ have been able to acquire this component from supply sources other than Gaz Métro. These larger clients were and are still allowed to stabilize their budget by locking in a fixed price in the futures market. They may also use structured products to better hedge the risk associated with the price volatility of the commodity.

In reaction to customer demands prompted by increasing price volatility and higher gas prices, Gaz Métro introduced a service by which smaller clients (between 7,500 m³ and 1,168,000 m³ per year) are now able to partake many of the same services and in a simpler manner.

This service enables customers to negotiate with a supplier like Athena Energy a fixed price of gas for a predetermined period. They are then invoiced by Gaz Métro on its regular bill at that agreed price for the entire period agreed upon.

We invite you to contact us to find out about pricing conditions available today. You can visit the “Fixed Price Natural Gas” section of Gaz Métro's website: http://www.gazmetro.com for more details.

2. Traditional Gas Marketing

A) Gaz Métro Buy/Sell service (with transfer of ownership)

Click to enlarge the picture According to this type of arrangement, Gaz Métro buys from Athena at Empress (delivery point located at the Alberta-Saskatchewan border) all the daily gas requirements for a specific buyer. Gaz Métro then transports the gas to the buyer's facilities in Québec and sells it back to them, all this at their monthly reference price Price paid by Gaz Métro to the supplier for the duration of the contract. Athena will then invoice or credit the buyer for the difference between the amount paid by Gaz Métro and the buyer's contracted price. (Gaz Métro's reference price can be lower or higher than the contractual price agreed to with the buyer, therefore, either an invoice or credit will be issued every month.)

B) Gaz Métro Bundle-T service (without transfer of ownership)

Click to enlarge the picture According to this service, Gaz Métro only provides transportation & distribution services between a delivery point (usually Empress) and the buyer's facilities. In such arrangements, Athena invoices the buyer the total value of the gas purchased and delivered (including compression gas). Gaz Métro only invoices for the services related to transportation, distribution and load balancing.

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