Customers eligible for Rate M

Rate M applies to your contract if your maximum power demand has been at least 50 kilowatts (kW) during a consumption period included in the last 12 monthly periods.

These explanations have been simplified. For more details about Rate M, consult section 1 of chapter 4 of the Electricity Rates [PDF 4.54 Mb], approved by the Régie de l’énergie.

Structure of Rate M

Billing for Rate M includes the following:

  • An amount for the energy in kilowatthours (kWh) consumed during the period in question. Two different prices apply depending on the amount of energy consumed:
    • a price for the first 210,000 kWh
    • a lower price for the remaining consumption
  • An amount for the billing demand in kilowatts (kW).

Rate M is a monthly rate, which means the first-tier consumption limit, and the amount billed as demand, and the minimum charge are 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 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.

Learn more about your electricity rate

Rate M prices in effect

Breakdown of billing

  • Price of energy
    • First 210,000 kWh 4.99¢/kWh
    • Remaining consumption 3.70¢/kWh
  • Price of power $14.46/kW 

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 

If little or no electricity is used, a minimum charge is billed. It is $12.33 when single-phase is delivered and $36.99 per month when three-phase is delivered.

Rates in effect as of April 1, 2018. This table does not replace the Electricity Rates document in any way whatsoever.

How to read your Rate M bill

Switch to another rate

Switch to Rate G‑9

If your load factor is usually below 30%, Rate G‑9 may be better for you, because, at this rate, energy carries greater weight than power.

For more information, contact your commercial officer or designated agent. Our Business customer services can also be reached at the numbers in the “Contact us” section.

Comparison of bills calculated at Rate M and Rate G‑9

The following table compares four customers with a billing demand of 140 kW, but different load factors.

Case LF KWH Rate G‑9 Rate M
Customer 1 10% 10,080 $1,596 $2,527
Customer 2 20% 20,160 $2,604 $3,030
Customer 3 30% 30,240 $3,612 $3,533
Customer 4 40% 40,320 $4,620 $4,036

Billing for a 30‑day consumption period with no discount for supply at medium or high voltage or adjustment for transformation losses (rates in effect April 1, 2018, excluding taxes).

Details on Rate G‑9

Switch to Rate L

If your minimum billing demand is 5,000 kW or more, Hydro‑Québec will automatically switch your contract to a large‑power rate: Rate L if your contract is related to an industrial activity or Rate LG in other cases.

If your minimum billing demand is just under 5,000 kW, it may be better for you to switch to Rate L or LG. Discuss your options with your commercial officer or designated agent. Our Business customer services can also be reached at the numbers in the “Contact us” section.

Planning any changes?

If you plan to buy new equipment, extend your business hours or enlarge or renovate your facility, your use of electricity could increase and it could then be to your advantage to switch to Rate L or LG, or your contract could be switched automatically. Discuss your options with your commercial officer or designated agent. Our Business customer services can also be reached at the numbers in the “Contact us” section.

Other rates or rate options

If you have a Rate M contract, the following options may be of interest to you.

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 domestic rates and small- and medium-power rates, or 95% for large-power rates) of the apparent power in kilovoltamperes (kVA).

Monthly period

Period of 30 days, which may begin on any day of the month, established by Hydro-Québec for billing purposes.

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).

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).

  • Low voltage: Voltage of 750 V or less.
  • Medium voltage: Voltage of more than 750 V, but less than 44 kV.
  • High voltage: Voltage of 44 kV or more.

Voltage

Difference in electrical level between two points, expressed in volts (V).

Transformation

Operation that involves increasing or decreasing voltage through a transformer.

Load factor (LF)

Relationship between the energy (in kilowatthours) actually consumed and the amount of energy that can be consumed by using the entire maximum power demand throughout the consumption period. The load factor indicates the utilization rate of maximum power demand for a given consumption period.

Minimum billing demand (minimum demand)

The minimum amount of power that the customer must pay for each consumption period, regardless of electricity use. The threshold is set so that you pay your share of the costs Hydro-Québec incurs to meet your power needs at all times. The minimum billing demand is determined by the conditions of each rate, as indicated in the Electricity Rates.

  • 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 demand

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.

Winter period

Period from December 1 through March 31 of the next year, inclusive.

Minimum charge (minimum monthly bill)

Minimum amount billable for electricity service even if little or no electricity has been used in the billing period.