active business services-inserts-january2017 (2) (1)

SuStainable energy:an economic shift

2016 was a year filled with unpredictable weather patterns causing challenges for many businesses in Ontario. In 2017, the government’s new “Cap and Trade” program paired with upcoming supply and demand challenges, will create an unstable commodity market. It’s time to take control and manage your energy costs.

Head Office 390 Brant Street, Suite 402, Burlington, Ontario, Canada L7R 4J4O: 416-238-5540 F: 905-333-0982 E: [email protected] t i vebus inessse r v i ces . com

it’s time to take Control and Manage your energy Costs.

WeatHerFOreCaStS

1. Volatility in electricity Prices (HOeP)2. Higher Demand During Peak Hours 3. Higher Prices Due to increased Demand

• Coming off one of the mildest winters in 2016, we experienced one of the longest, hottest summers on record.

• This created drastic changes in electricity prices (HOEP) due to the extreme weather changes.

• Between the months of April 2016- August 2016 the hourly Ontario electricity price (HOEP) increased at an average rate of 58% each month.

• For the winter of 2016/2017, Accuweather forecasts an above average amount of snowfall for most parts of Southern Ontario as well as Quebec.


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CaP anD traDe


In January 2017, Ontario will begin its “Cap and Trade” program, in hopes of reducing the provinces overall gas emissions. Facilities and natural gas distributors with green house gas emissions greater than 25,000 tonnes per year will be required by law to participate in this program.

• The “Cap” portion of the program sets a limit on the amount of emissions, that a company is allowed to produce each year. This allowance will decrease every year in hopes of reducing the amount of pollution in the atmosphere.

• The “Trade” portion of this program allows companies to innovate in order to meet their allowance.

• Cap and Trade costs will be passed on to all natural gas consumers. This will put upward pressure on electricity prices (HOEP).

HOW IT WORKS:

TARGETS:• Ontario’s greenhouse gas reduction has ambitious targets; 15% reductions against 1990 levels to be achieved by 2020, 37% by 2030, and 80% by 2050.

• Ontario Power Generation (OPG) is seeking to increase the price of nuclear power by 11% each year for the next 10 years.

• This money will go to financing the Pickering Nuclear station as well as re building the Darlington Nuclear station.

• Nuclear power attributes to over 50% of Ontario’s electricity.

• Auction prices will start a minimum of 17.70 USD/ tonne, and companies will have to pay an additional 0.94 USD/MMBtu (overage charges will continue to increase) over their allowance.

NUCLEAR POWER:

COST:

refurbishment of nuclear Facilities = increased Dependence on renewable generation

= increased Price for electricity

increased nuclear Power= economical electricity generation

1. increased natural gas Prices 2. increased eectricity Prices (HOeP) 3. new Penalties for large energy Consumers iMPaCt:

SHOrt terM iMPaCt: lOng terM iMPaCt:


• The natural gas storage levels for December 2016 reached 3,995 billion cubic feet, this is an increase of 93 billion cubic feet from this time last year, and a 296 billion cubic feet increase over the 5 year average. With the amount of natural gas in storage reaching record levels the price of natural gas is undoubtedly going to decrease.

• From April 2014 to July 2016 Enbridge’s natural gas cost was on average 3.22 cents/m3 higher, and Union’s natural gas cost was 2.58 cents/m3

higher than Actives natural gas costs. As an experienced supplier Active is able to utilize purchasing strategies that are superior to the utilities.

naturalgaS

1. annual reconciliation and Performance reports2. Optimize Purchasing Strategy

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Founded in 2005 with the vision of providing clients with a trusted source of commodity supply and asset management expertise, Active Business Services has evolved into an innovative energy management firm, located in Burlington, Ontario.

It is always beneficial to take advantage of low prices and maximize your savings. With the help of Active Business Services we can provide a no cost assessment showing potential savings while providing an energy product that will suit all of your company’s needs.

For our personalized assessments we obtain historical usage patterns for each meter at your facility, analyze the actual consumption data to provide options available to the facility and present any strategies that would benefit the organization from a cost or hedging perspective.

Active has provided valuable assistance in

reducing our energy costs, and provided expertise

in negotiating natural gas transportation and delivery

contracts.beneFitS:1. Custom tailored Proposal based on actual usage2. no Cost or Obligation3. Determine any Credits available to the businesses

active business services-inserts-january2017 (2) (1)

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