[Truenorth00]

Does STO actually hedge for fuel though? Or do they simply buy at spot price?

I'm surprised that OC Transpo hedges for a whole year. Most airlines do a max of 6 months. And often with a focus on peak demand seasons.

No idea if diesel prices could double. But anybody budgeting conservatively should be budgeting for fuel prices that we saw at peak. The war in Ukraine isn't close to finished. And the sanctions on Russia will persist for years. I would imagine a full year average of $2/L is necessary to ensure emergency cuts aren't necessary.

Again though, Quebec is literally the best province to electrify in. And this was true even before the war. Higher fuel prices and cheaper electricity prices. If it makes sense for OC Transpo to fully electrify by 2036, then it should be even more true for a transit operator in Quebec that doesn't have electrified rail for a good chunk of their pax-kms.