Rate reduction

The Economic Development Rate, which will end in 2027, provides for an initial reduction of 20% applied to Rate M, LG or L. This reduction will be diminished by 5 percentage points a year over the final three years, in order to ensure a gradual transition to the rates normally applicable.

Eligibility

To take advantage of the Economic Development Rate, you must meet the following conditions:

  • You must undertake to build and commission a new facility with a power demand of at least 1,000 kW or to add at least 1,000 kW of power demand to an existing facility.
  • In the case of an existing facility, the expected maximum power demand of the new equipment must not be less than 20% of the highest billing demand during the 12 consumption periods preceding its commissioning.
  • The facility’s electricity costs must account for at least 10% of operating expenses. In the case of a data hosting facility, it must also present a significant added value for the Québec economy.
  • The facility must have significant potential for the net addition of new loads within Québec. Consequently, the new load must not be the result of production transfers between the entities or facilities of the same company or of different companies within Québec, and it must not be linked to equipment that was in operation during the year preceding the effective date of this rate.

Sign-up procedure

To sign up for the Economic Development Rate, you must send Hydro-Québec a written request containing the following information:

  • A summary description of your planned facility or your expansion project, including the products to be manufactured (if any), the processes and technologies to be implemented, and the anticipated investments and operating costs;
  • Scheduled commissioning date;
  • Estimates of the power demand and average energy consumption under the contract in question;
  • An attestation that the Economic Development Rate was one of the determining factors in your decision to build or expand a facility in Québec.

For more information

If you have any questions about this rate, contact your commercial officer or designated agent. You can also reach our Business customer services at 1 800 463-9900 or by e-mail at affaires@hydro.qc.ca.

These explanations have been simplified. For more details about the Economic Development Rate for large-power customers, consult section 6 of chapter 6 of the Electricity Rates [PDF 1,7 Mo], approved by the Régie de l’énergie.

Maximum power demand

Maximum power measured during a consumption period. It is the higher of the following two values: real power in kilowatts (kW), or a percentage (90% for small- and medium power rates, or 95% for large power rates) of the apparent power in kilovoltamperes (kVA).

Power

Total amount of electricity supplied at a given time. Expressed in kilowatts (kW), power is the combined effect of voltage, expressed in kilovolts (kV), and current, expressed in amperes (A).

Energy

Power used by electrical equipment over a given period of time. Expressed in kilowatthours (kWh), energy is calculated as power, expressed in kilowatts (kW), multiplied by the time during which the power is used, expressed in hours (h).