Customers eligible for Rate LG
Rate LG applies to an annual contract whose minimum billing demand is 5,000 kilowatts or more, unless the contract is principally related to an industrial activity.
These explanations have been simplified. For more details about Rate LG, consult section 2 of chapter 5 of the Electricity Rates [PDF 1.7 Mb], approved by the Régie de l’énergie.
Structure of Rate LG
Billing for Rate LG includes the following:
- An amount for the energy in kilowatthours (kWh) consumed during the period in question.
- An amount for the power in kilowatts (kW) measured during the period in question.
Rate LG is a monthly rate, which means the amount billed for power is based on a 30-day period.
If applicable, the following may lower your bill:
Credit for supply at medium or high voltage
Hydro-Québec’s rates assume that electricity will be supplied at low voltage. If you have equipment to step down the voltage of the electricity delivered to you or if you use electricity at medium voltage or high voltage, that means reduced costs for Hydro-Québec. In return, you receive a monthly credit on your demand charge. The credit is determined according to the supply voltage.
Adjustment for transformation losses
Hydro-Québec bills you only for the electricity you use. This means it absorbs the transformation losses associated with electricity delivery. If metering occurs before transformation, the electricity billed will include energy lost during transformation that does not reach the customer. So that you do not pay for energy losses, Hydro-Québec grants an adjustment on the billing demand.
The following may also be billed in certain cases:
Charge for low power factor
Electrical equipment, whether yours or Hydro-Québec’s, is designed to operate at a relatively stable voltage. Hydro-Québec’s rate structure is designed in such a way as to encourage large-power customers to maintain a power factor of at least 95% at all times.
When large-power customers make less than optimal use of the electricity provided and have a power factor below 95%, Hydro-Québec is forced to supply them with additional power and handle the impacts on the power system. The rate structure allows for Hydro-Québec to bill this excess power to customers.
And when the maximum power demand is below 5,000 kW, customers must still maintain a power factor of 95% or more, or risk being billed at the price of power for excess kVA.
Rate LG prices in effect
Breakdown of billing
Applicable in certain cases
- Credit for supply at medium or high voltage
- Voltage of 5 kV to less than 15 kV $0.612/kW
- Voltage of 15 kV to less than 50 kV $0.981/kW
- Voltage of 50 kV to less than 80 kV $2.190/kW
- Voltage of 80 kV to less than 170 kV $2.679/kW
- Voltage of 170 kV or more $3.540/kW
- Adjustment for transformation losses 17.76¢/kW
Rates in effect as of April 1, 2017. This table does not replace the Electricity Rates document in any way whatsoever.
Other rates or rate options
If you have a Rate LG contract, the following options may be of interest to you.
- Running-in of new equipment by large-power customers
If you’re putting new equipment or a new facility into service, your power demand could increase for a few months until your operations have been optimized. Under this option, you can be temporarily exempt from certain rate conditions applicable to power billing.
- Equipment testing by large-power customers
If you have to run short tests after adding new equipment or modifying or optimizing existing equipment, your power demand may rise temporarily. Under this option, you don’t have to pay for the excess power used during the test period(s).
- Additional electricity option for large-power customers
Under this rate option, you can use electricity beyond your normal consumption to fill a short-term order or meet an exceptional need at a lower price for both energy and power.
- Interruptible electricity options for large-power customers
If you can lower your consumption at Hydro-Québec’s request, these options offer a great opportunity for you to save on your electricity bill during the winter period.
- Economic Development Rate
Are you planning 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? This rate offers a great opportunity for you to save on your electricity bill.
Minimum billing demand
The minimum amount of power that the customer must pay for each consumption period, regardless of its electricity use. It applies to all business customer accounts.
- For all rates except Rate L, the minimum billing demand is automatically determined based on the previous winter’s maximum power demand.
- Rate L customers must set their own minimum billing demand, called “contract power,” based on the amount of electricity they expect to use.
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).
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).
- Low voltage: Voltage of 750 V or less.
- Medium voltage: Voltage between 750 V and 44 kV.
- High voltage: Voltage of 44 kV or more.
Difference in electrical level between two points, expressed in volts (V).
Operation that involves increasing or decreasing voltage through a transformer.
Power factor is calculated as follows:
PF = real power Apparent power x 100
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 a customer requires to meet energy needs at a given time. The higher the customer’s energy consumption at a given time, the higher the power demand.
The period from December 1 of one year through March 31 of the following year, inclusive.