Image: Hydro-Québec – Business Customers – Medium Power
Link: Business Customers – Medium Power Home Page
Image: Understanding the Bill and Rates
  Medium power (M)
  Small power (G)
  Rate G-9
  Rate GD
  Running-in for
new equipment
  Interruptible electricity
rate option
  Public lighting rates (in French)
  Rate BT
Image: Managing Power Demand
  Optimizing your billing demand
Understanding the Bill and Rates
Running-in for New Equipment

Reliable energy at stable prices
The Running-In Option is an arrangement that applies for a limited time under the Medium-Power (M) Business Rate.
Helping you carry out your projects
Planning to enlarge your facilities, modernize your equipment or launch some other innovative project? Chances are the Running-In Option is just what you need.

If you have to run short tests (say for a few hours) before putting new equipment into service, your demand power may rise.

As a result, your load factor will fall, pushing up the cost of the kilowatthours you consume.
Potential savings
With the Running-In Option, you can get around this problem. How? Simply by not having to pay for a momentary but significant increase in your demand power.

The specific provisions of this option allow us to calculate your bill differently.

With the Running-In Option, you can be temporarily exempted from conditions that apply when you exceed your contract power.

This lets you test new equipment without having to pay for the resulting increase in your demand power.
Simplified bill calculation
Calculating a bill under the Running-In Option involves three steps:
  • Step 1
    An average price (in ¢/kWh) is determined based on the last 12 consumption periods or, if there is insufficient data, on an estimate of consumption.
  • Step 2
    This average price is increased by 4%.
  • Step3
    The average price, plus 4%, is applied to the energy consumed during the running-in period.
The demand power recorded during the running-in is therefore not used in the calculation, even if it is above the limit used in determining the average reference price (Step 1).

The calculation of the bill will vary slightly if your last contract did not cover 12 consumption periods with no Running-In Option.
Flexible terms and conditions
To take advantage of the Running-In Option, you must meet the following conditions:
  • The power of the equipment being run in must equal at least 10% of the contract power in effect during the period preceding the request.
  • You must advise Hydro-Québec in writing at least 30 days before the start of the running-in period, specifying the consumption period(s) to which you want the Running-In Option to apply.
  • You must send Hydro-Québec a description of the type and power of your equipment for approval.


Sample calculation for a contract with more than 12 consumption periods with no running-in

Step 1
An average price (in ¢/kWh) is determined based on the average billing demand and energy consumed during the last 12 consecutive consumption periods with no running-in.
Total for 12 periods 29,030,400 kWh48,000 kW
Monthly average 2,419,200 kWh4,000 kW
Calculation of an estimated bill
First bracket
kWh in 1st bracket   210,000 kWh
Price for 1st bracket x 4.48¢/kWh
Energy charge for 1st bracket = $9,408
Second bracket
kWh in 2nd bracket   2,209,200 kWh
Price for 2nd bracket x 2.93¢/kWh
Energy charge for 2nd bracket = $64,730
Power
kW   4,000 kW
Cost x $13.44/kW
Demand charge = $53,760
Estimated total  $127,898
Average price
The average price is obtained by dividing the estimated total ($) by the average consumption (kWh).
 $127,898
÷ 2,419,200 kWh
 = 5.29¢/kWh
Step 2
This price is increased by 4%.   5.29¢/kWh
x 1.04
= 5.50¢/kWh
Step 3
Supposing your consumption were 2,450,300 kWh, the bill would be calculated as follows:
Multiply your actual consumption for the period by the estimated average price, plus 4%.
The result will be the total amount of your bill, before taxes.
  2,450,300 kWh
x 5.50¢/kWh
= $134,767
Duration of commitment
The conditions of the Running-In Option are applicable for a maximum of 1 to 12 consumption periods, depending on your situation.

To terminate your commitment, you must notify Hydro-Québec in writing. You can choose to end the Running-In Option either at the beginning of the consumption period in effect when Hydro-Québec receives your notice, or at the beginning of one of the two preceding or subsequent periods.


Link: Hydro-Québec's Home Page