Topic: How To Invest

Dear Pat: What is your opinion of Gaz Metro LP?

Article Excerpt

Gaz Metro LP, $16.27, symbol GZM.UN on Toronto (Units outstanding: 120.5 million: Market cap: $2.0 billion), mainly distributes natural gas in Quebec and Vermont. Gaz Metro is the largest gas distributor in Quebec, where it has 1,300 employees and serves 180,000 customers through an underground pipeline network of almost 10,000 kilometres. Gaz Metro sells 90% of its gas to commercial customers; homeowners account for the remaining 10%. It also owns interests in pipelines and underground storage sites in the province. Gaz Metro is the only natural-gas distributor in Vermont. It has 320 employees in the state. It also owns Green Mountain Power Corp., Vermont’s second-largest electricity distributor. In May 2008, Gaz Metro and electricity producer Boralex Inc. (symbol BLX on Toronto) won contracts to build and operate two wind-power projects in Quebec. These wind farms are located at Seigneurie de Beaupre, 60 kilometres northeast of Quebec City. They should begin operating in December 2013, and will generate 272 megawatts of electricity per…