Hydro-Québec: an important debt issuer on financial markets

The funds gathered by the company allow it to finance its development and ensure the long-term operability of its assets.

  • Presence on almost all the major fixed income markets: Canadian, American and European.
  • Public bond issues and private offerings. View the Borrowing program tab.
  • Long-term debt (including current portion and perpetual debt)1: $45.9 billion, including $44.2 billion in guaranteed debentures and medium-term notes.

Debt characteristics1

Average maturity: 17 years

Breakdown by fixed and floating rate Note 2

Fixed-rate at 84,2% and floating-rate at 15,8%.

Breakdown by repayment currency, including derivatives Note 2

Canadian currency at 100% and US currency at 0%.

Breakdown by currency at time of issue

Canadian currency at 78,9% and US currency at 21,1%.

Hydro-Québec’s Assets1

  • Over 99% of power generated from renewables
  • 27 large reservoirs with a storage capacity of 176 TWh
  • Installed capacity of 36,908 MW
  • Stable regulatory environment
  • Domestic market of more than 4.2 million customer accounts
  • Rates amongst the lowest in North America
  • Proximity and access to neighboring provinces and United States export markets
  • Debt unconditionally guaranteed by the Québec government
  • Sound financial management
Comparaison des prix de l’électricité dans les grandes villes nord-américaines
Electricity Generation in Canada and the United States

Hydro–Québec has four divisions1 :

Hydro-Québec Production (HQP)

Generates power to supply the domestic market and sells power on wholesale markets. Uses water to generate more than 99% of its output.

  • 62 generating facilities connected to the grid, including 61 hydroelectric generating stations
  • 36.8 GW in installed capacity
  • 27 large reservoirs with a storage capacity of 176 TWh
  • 668 dams
  • 99 control structures
  • net electricity exports of $1,568 million for 32.6 TWh

Heritage pool electricity

The activities of Hydro-Québec Production are not regulated. However, the division must provide Hydro-Québec Distribution with a base volume of up to 165 TWh of heritage pool electricity to supply Québec customers.

Hydro-Québec TransÉnergie (HQT)

Operates the most extensive transmission system in North America, serving customers inside and outside Québec.

Markets system capacity and manages power flows across the province. Works to ensure the development, reliability and long-term operability of its system.

Its Direction – Contrôle des mouvements d’énergie acts as Reliability Coordinator for transmission systems in Québec.

As at December 31, 2016, Hydro-Québec TransÉnergie operated:

  • 34,020 km of lines
  • 525 substations, including interconnections with some of the Atlantic provinces, Ontario and the U.S. Northeast

Changes to conditions of transmission service approved by the Régie de l'énergie for 2017*

Transmission operations are regulated by the Régie de l’énergie on the basis of cost of service. The rates and conditions of service, approved by the Régie de l’énergie, ensure non-discriminatory access to the system.

Capitalization 70% debt
30% equity
Return on rate base 6.198%
Return on equity 8.2%
Revenue requirement 3,248 M$
Rate base 19,862 M$

*In accordance with decision D-2017-049, rendered by the Régie de l'énergie on April 28, 2017.

Hydro–Québec Distribution (HQD)

Ensures a reliable supply of electricity for the Québec market.

To meet electricity demand, the division relies primarily on the heritage pool of 165 TWh supplied by Hydro-Québec Production. The division also purchases additional electricity under market conditions by issuing short and long-term calls for tenders. Through various initiatives, it also encourages its customers to make efficient use of electricity.

  • 116,794 km of lines
  • 4,244,541 customer accounts
  • one hydroelectric generating station, 23 thermal generating stations, 272 km of transmission lines and 11 substations to serve customers on off-grid systems
  • 169.3 TWh of electricity sales in Québec in 2016

Regulation of electricity distribution operations in 2017

Electricity distribution operations are regulated on the basis of cost of service. The rates and conditions of electricity service are approved by the Régie de l’énergie.

Capitalization 65% debt
35% equity
Return on rate base 6.899%
Return on equity 8.2%
Revenue requirement 11,693 M$
Rate base 10,748 M$

Rate increase:

  • Effective April 1, 2016 (authorized)
    • all rates, with the exception of the industrial rate (Rate L): 0.7%
    • industrial rate (Rate L): 0.0%
  • Effective April 1, 2017 (authorized)
    • all rates, with the exception of the industrial rate (Rate L): 0.7%
    • industrial rate (Rate L): 0.2%

Hydro-Québec Innovation, équipement et services partagés (HQIESP)

The Construction segment includes activities related to the projects carried out by Hydro‐Québec Innovation, équipement et services partagés (HQIESP)Note * and by Société d’énergie de la Baie James (SEBJ).

HQIESP is responsible for construction and refurbishment projects throughout Québec, except in the territory governed by the James Bay and Northern Québec Agreement (JBNQA). SEBJ builds generating facilities in the territory governed by the JBNQA (north of the 49th parallel) and may also carry out certain projects elsewhere in Québec and outside the province.

Construction Segment at a glance

Volume of activity $2.2 billion
Main customers
Hydro–Québec Production 34%
Hydro–Québec TransÉnergie 64%

* The operations of the Direction principale – Institut de recherche d’Hydro‐Québec, Direction principale – Centre de services partagés and Direction principale – Approvisionnement stratégique are included under Corporate and Other Activities in Hydro-Québec's Annual Report 2016.

IR Newsletter

The IR Newsletter is an electronic bulletin that informs you about Hydro-Québec’s major financial news.

  1. As at December 31, 2016.
  2. Derivatives consist of swaps and forward contracts traded for long-term risk management related to debt.
Terms and conditions of disclosure

The content of this site is intended for general information purposes only and should not be construed as an offer to sell or a solicitation of offers to purchase securities.

It has not been approved by any regulatory body and is not sufficient for the purpose of deciding to purchase securities. The information, when released, was considered reliable as of that date.

However, errors or omissions may have resulted from electronic conversion, downloading or unauthorized modifications. No warranty is being made by Hydro‑Québec as to the accuracy or completeness of the information provided on this site. Users from outside the Province of Québec are sole responsible for complying with their national, provincial or state laws and regulations.

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