Profile: Pierre has over 20 years' experience in the energy industry. Prior to joining Energy Advantage, Pierre was founder, President and CEO of Multi-Energies Inc., a Quebec based energy service provider. Earlier, he held executive positions with North Canadian Gas Marketing and Brenda Marketing.

Pierre is married with three children aged 15 to 21 years old. He is an avid sport enthusiast who is passionate about hockey, football, soccer and sports in general. Pierre is an active coach in the different sports his children participate in. His other interests include new technology, movies, food and wine.

[Newsletter] You have worked in the energy business for many years. Can you briefly describe your background?

[Pierre] I started out by taking a bachelor degree in chemical engineering at Ottawa University and then moved to McGill University in Montreal to take an M.B.A. I have always been fascinated by the energy industry, probably because of its impact on the world economy and geopolitical situation. I have been lucky in having had the opportunity to work for the past 23 years in this field.

During my career I have been exposed to all facets of the industry—production, marketing, and distribution of three major energy commodities: oil, natural gas and electricity. My perspective on the industry is one of an outsider looking in, trying to obtain information that can help customers make the appropriate decisions with respect to energy prices and efficient energy utilization. This macro perspective of the energy industry taught a number of things. The first is that optimal pricing decisions can be made only if you have access to the appropriate market data. Secondly, reducing energy use can be done effectively only once you fully understand your existing consumption profile. Finally, new technology plays a major role in any energy efficiency/management savings program.

[Newsletter] Over time, how have you seen the energy and environment landscape change in Quebec, and where do you see it going?

[Pierre] I have been working in the energy business in Québec since 1985. Unfortunately, I have witnessed very little change over the past 20 years in the energy landscape. The two utilities, Gaz Metropolitan and Hydro-Quebec, have more or less maintained their monopoly position. However, with respect to the environment, and particularly climate change, I am very pleased with the Quebec government’s initiatives and their leadership role in this emerging market. The David Suzuki Foundation just released a report card on provincial climate change action. Quebec received the second highest grade, just below British Colombia. The government’s involvement is necessary in the early stages to ensure that Canadian policymakers understand Quebec’s position and the importance that the majority of Quebecers attach to the environment.

[Newsletter] Earlier in your career, you spent two years working for Gaz Metropolitan. What did you learn from working on the utility side of the energy industry?

[Pierre] When I think about the two years that I spent at Gaz Metropolitan, what strikes me first is the level of dissatisfaction and frustration customers had with the services they were receiving, and secondly, how impossible it seemed to make the changes required to satisfy their needs from within a regulated utility. I had spent the previous five years in a dynamic business environment where customer service and relationships were of utmost importance. What a change! However, in all fairness, my understanding of a fully deregulated energy marketplace and the business opportunities offered by the deregulated market to meet customer needs come from the period I spent with Gaz Metropolitan.

[Newsletter] In the wake of escalating energy prices, how can Quebec companies and institutions work towards insulating themselves from these energy price shocks?

[Pierre] The biggest single factor in the short and long term is to reduce their overall energy consumption. The benefits to organizations are obvious; significant cost reductions and increased operational efficiency. The difficult part of this strategy is implementing a corporate culture that embraces energy efficiency and environmental responsibility. In order to be successful, every level of the organization must be committed to achieving these objectives.

[Newsletter] In the heat of the climate change debate in North America, the province of Quebec has helped lead the way in taking action. This past April, in Montreal, Al Gore lauded Quebec’s climate change initiatives while remaining mum on the Canadian government’s work. In 2007, Quebec introduced the first carbon tax in Canada, raising roughly $200 million annually to pay for greenhouse gas reductions initiatives and improvements in public transit through the Green Fund. The province is a member of the Western Climate Change Initiative and recently signed a Memorandum of Understanding with Ontario to put in place a cap and trade system based on a hard emissions cap, in contrast with the federal plan that plans to use a “soft” or “floating” cap. How has the provincial plan affected organizations in Quebec up to this point?

[Pierre] The carbon tax amounts to 0.8 cents on every liter of gas sold in Quebec, and 0.9 cents on each liter of diesel fuel, much less than one per cent of the total price in both cases. Only 50 companies are presently affected by the tax. Oil companies are the hardest hit. They will pay about $69 million a year for gasoline, $36 million for diesel fuel, and $43 million for heating oil. Natural gas distributors will pay about $39 million, while electricity distributor Hydro-Québec will pay $4.5 million for its thermal energy plant in Tracy, Que. Considering the companies that are being targeted, it seems like a drop of water in the ocean. In my opinion, the government could have gone much further. The message should be: you must rethink your wasteful habits. This looks more like a solution to finance the public transit system.

[Newsletter] How do you expect Quebec's emissions reduction policy, including the new cap and trade program, will affect businesses, and what advice do you have going forward?

[Pierre] I hope the legislation will be enacted sooner than later. My biggest hope is that the government will impose firm reduction targets. Initially, such targets might seem difficult to achieve, but, if acted upon at an early stage, the targets will help Quebec companies maintain and improve their competiveness in a global economy. My advice to all our customers–existing and future–is simple: the faster you take this matter seriously and start acting with concrete measures, the faster you will see the benefits and the more competitive you will be.

[Newsletter] Over the past several decades Quebec, compared to the rest of Canada, has enjoyed particularly low electricity prices. In June of 2000, Law 116 was passed, establishing the Heritage Pool of electricity whereby Hydro-Quebec is required to supply 165 TWh of electricity annually to Quebec’s consumers at a rate of 2.79 ¢/kWh. With rising energy costs, will Quebec residents and business be able to continue to receive such cheap energy? What effect has the fund had on the Quebec economy and its use of energy?

[Pierre] In my opinion, the electricity heritage fund was mishandled from day one for several reasons. The Heritage Fund was established in order to accumulate wealth for future generations. Establishing a value for a resource below the market price only leads to wasteful use of that resource and certainly doesn’t create any wealth for Quebec residents! Instead, had the government decided to price the 165 TWh at market prices, while investing in additional transmission interconnects with neighboring markets to export this electricity, the province of Quebec would be benefiting from additional export revenues much like Alberta does for its oil and gas. Secondly, investments in energy efficiency projects in the province would have increased, leading to a reduction in consumption and improving the competitiveness of Quebec’s economy. Thirdly the additional revenues would have contributed to finance the health and educational systems. Finally, the impact of the heritage fund under current circumstances has only achieved the on-going process of wasting such a useful resource.