Insights
Regulatory/Market Insights
OEB Consults on Low Income Energy Consumer Issues
September 2008
The Ontario Energy Board is consulting with stakeholders on issues concerning low income energy consumers and their use of natural gas and electricity. The discussion has attracted a broad range of interests including large-volume consumers. Read more >>
Key Considerations for CESOP
August 2008
With its Clean Energy Standard Offer Program (CESOP), the Ontario Power Authority has set the competitive bar high. In a continuation of our discussion from our June 2008 newsletter, we explore key considerations affecting the financial competitiveness of prospective projects. Read more >>
Do Real Interest Rates Influence Commodity Prices?
July 2008
With rising commodity prices come theories of what causes the price increase. A common theory is that a decline in real interest rates (interest rates adjusted for inflation) will prompt investors to forego bonds and invest in commodities, resulting in higher demand for these products and thus, higher prices. To better understand the role that interest rates, and more specifically investors, have on energy prices... Read more >>
Taking Stock of Carbon Emissions and Risk
July 2008
How to deal with GHG emissions in Canada (through regulations and/or taxation) is being debated. With the federal and provincial governments each putting forward their own initiatives for addressing the challenge of climate change, it is not surprising that there is some confusion about what should be done. Is it best to wait until a complete and formalized process is in place or are there things that can be done now to begin to measure and manage risks that will arise from these processes? Read more >>
Climate Change Policy - Cost and Risk Impacts
June 2008
Climate change policy has been a hot subject in the news lately. As Federal and Provincial governments each weigh in with their own policies, it can become a challenge to keep track of how these policies impact our businesses. In this article, we discuss the various policies and the potential impact on consumers. Read more >>
The Role of LNG in North American Markets
June 2008
Liquefied Natural Gas can benefit consumers and suppliers as it allows for natural gas to reach destinations that would be unreachable with conventional pipelines. In an environment of rising natural gas prices, can LNG provide the additional supply needed to reduce prices in North America? Read more >>
Bid/Ask Spreads: Why is the Price Higher When We Buy Versus When We Sell?
May 2008
We've seen it happen on vacation. You pay one price when you buy a foreign currency then you get a lower price when you sell it back. But as experienced travellers, we've learned that there are better places and times to exchange your currency to avoid paying too much. What drives buy/sell spreads in the gas market? Read more >>
Oil and Natural Gas: Are the Prices Linked?
May 2008
There has been an ongoing debate surrounding the relationship between the price of natural gas and the price of oil. What's behind this theory and how does it stand up to historical pricing data? Read more >>
Coal Replacement-Implied Carbon Cost
April 2008
The Ontario government has introduced legislation that all coal generation must be out of service by 2014. The shortfall in generation needed to serve Ontarians will be made up through conservation efforts and gas-fired, nuclear and renewable energy generation. With British Columbia's introduction of a carbon tax recently making headlines, how does Ontario's coal replacement initiative compare in its impact on consumers? Read more >>
Explaining the Global Adjustment, Part 2
April 2008
In a continuation of our article explaining the Global Adjustment and the role it plays in electricity prices, this month's article discusses the impact of conservation and demand management (CDM) on the Global Adjustment and ultimately, your electricity bill. Read more >>