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 Rates for Large-Power Business Customers  

Rate L

Industrial rate for large-power customers

Rate L applies to an annual contract whose is 5,000 kilowatts (kW) or more and which is principally for an industrial activity.

Structure of Rate L

Demand charge
  • Billing demand: $12.87/kW
  • Billing demand in excess of 110% of in
    • For each day during which an overrun occurs: $7.53/kW
    • Monthly maximum: $22.59/kW
Price of energy: 3.27¢/kWh

Rates in effect April 1, 2017. Under no circumstances shall this table replace the Electricity Rates.

Understanding rates

Rates have three main components that reflect the actual costs incurred by Hydro-Québec to provide electricity service.

Rate L has no fixed charge.

As the amount of consumed varies, the cost of energy varies as well.

Hydro-Québec equipment must be able to meet each customer's maximum power demand throughout the year. Even if is variable and consumption is sometimes minimal, Hydro-Québec must always cover the costs related to the proper operation and maintenance of the equipment it uses to supply its customers. For this reason, it’s important that rates for large electricity consumers include billing for maximum power demand. This reflects the costs associated with meeting power demands of varying size and duration.

The demand charge is applied to the greater of these two billing demand values:

  • The maximum power demand corresponding to the greater of the following two values:

    • 95% of
  • or

  • , which is equal to the .

Electricity rates also include other components

If you are a customer subject to Rate L, you sign a contract with Hydro-Québec for the minimum billing demand you must pay for each consumption period. This is called .

If your maximum power demand exceeds 110% of the contract power on a given day in the , the overrun (difference between 110% of contract power and ) is subject to a daily optimization charge of $7.53 per kilowatt.

However, this charge will not exceed the equivalent of a monthly optimization charge of $22.59 per kilowatt applied to the part of the billing demand in excess of 110% of your contract power.

Optimal power factor: 95%

Electrical equipment, whether yours or Hydro-Québec’s, is designed to operate at a relatively stable voltage. Hydro-Québec’s rate structure for large-power customers is designed in such a way as to encourage customers to maintain a power factor (PF) of at least 95% at all times.

What happens if your PF is below 95%?

Some customers make less than optimal use of the electricity provided to them, which forces Hydro-Québec to supply them with additional power and handle the impacts on the power system. The rate structure allows for Hydro-Québec to bill excess power to customers.

However, for Rate L or LG customers whose maximum power demand exceeds the highest real power demand, which is less than 5,000 kW, there is a charge for each kilowatt of apparent power exceeding the limits set in the rate so as to ensure that such customers pay the real cost of their electricity supply in the interest of treating all customers fairly. Hydro-Québec applies the demand charge to the difference between the maximum power demand up to 5,000 kW and the highest real power demand.

Hydro-Québec's rates assume that electricity will be supplied at low . 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.

Nominal voltage between phases equal to
or greater than Monthly credit

5 kV, but under 15 kV $0.612/kW
15 kV, but under 50 kV $0.981/kW
50 kV, but under 80 kV $2.190/kW
80 kV, but under 170 kV $2.679/kW
170 kV $3.540/kW

Rates in effect April 1, 2017. Under no circumstances shall this table replace the Electricity Rates.

Hydro-Québec bills you only for the electricity you use, regardless of where it is metered in relation to the transformer substation. If metering occurs before transformation, the electricity billed will include transformation losses. So that you do not pay for losses, Hydro-Québec grants an adjustment of on the billing demand. Conversely, if metering occurs after transformation, the company will absorb the losses.

Large-power rate options

See also