Rate DN applies to domestic use, that is, electricity use in a dwelling, when the electricity is supplied by an off-grid system located north of the 53rd parallel, except for the Schefferville system.
Rates north of the 53rd parallel apply to the following municipalities:
Off-grid systems usually run diesel generators to meet the electricity needs of the communities they serve. The technology used by these generating stations, their need for fuel and their remoteness translate into high generation costs.
In these regions, it’s more efficient and cheaper to heat rooms and water directly with fuel (oil or propane) than with electricity.
Because it takes a generating station a lot more fuel to generate the electricity required to heat a home’s rooms and water than it does a fuel-fired heating and hot-water system installed in the home.
That’s why, north of the 53rd parallel, Hydro-Québec has a rate structure designed to encourage customers to heat their homes and water directly with fuel, while enabling them to enjoy the same low cost of power as customers south of the 53rd parallel for all other uses, such as lighting or electrical devices.
Residential customers in Nunavik who don’t have any government grants are eligible for the Efficient Energy Use Program (EEUP). Under the Program, they end up paying 30% less than what it would cost them to heat with electricity, no matter how the price of fuel fluctuates.
And if they are eligible for the EEUP, Hydro-Québec pays the maintenance and repair costs for their heating systems.
Residential customers served by off-grid systems north of the 53rd parallel pay the same system access charge and the same price for electricity used in the first tier of kilowatthours (kWh) as customers south of the 53rd parallel. As for Rate D, the first tier for Rate DN is equal to 40 kWh times the number of days in the consumption period.
North of the 53rd parallel, because fuel oil is the main source of energy used for heating space and water, customers typically use only between 15 and 22 kWh of electricity a day, depending on the time of year. The basic uses for a typical home, such as lighting or electrical devices, are therefore covered by the first tier, in which the number of kilowatthours at the lowest price is calculated as follows: 40 kWh a day times the number of the days in the consumption period.
Only the kilowatthours above that threshold are billed at a higher price than the one applicable south of the 53rd parallel. In this way, Hydro-Québec’s rate structure encourages customers to use energy efficiently, by opting for the best source of energy for heating—and north of the 53rd parallel, that’s oil.
DN Rate effective December 1, 2019. Rates effective April 1, 2019. Under no circumstances shall this table replace the Electricity Rates.
If you have a Rate DN service contract, you shouldn’t heat your home and water with electricity, because it will cost you more.
In fact, if you choose to heat your home electrically, you will have to pay, in addition to applicable charges at Rate DN, a “special charge for connecting to an off-grid system [PDF 4.69 MB].”
More specifically, the “special charge for connecting to an off-grid system” applies in the following cases:
It does not apply if your connection request is for temporary use of electric heaters to dry joints and paint during construction work.
The “special connection charge for off-grid systems” amounts to the following:
Rates generally have three main components that reflect the actual costs incurred by Hydro-Québec to provide electrical service.
The system access charge, expressed in cents per day for this rate, is a set amount that you pay for electricity service.
As the amount of energy you use varies, the amount billed varies as well.
Hydro-Québec must be able to meet its customers’ maximum power demand at all times. Even though power demand is variable throughout the year and consumption is sometimes minimal, Hydro-Québec’s rates still have to cover the cost of operating and maintaining the power system. 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:
For Rate DN, the minimum billing demand is set at 65% of the maximum power demand during a consumption period that falls wholly within the winter period included in the 12 consecutive monthly periods ending with the consumption period in question.
Hydro-Québec grants a supply credit of 0.241¢/kWh to Rate DN customers to whom it supplies electricity at 5 kV or higher.
Domestic rates, like the other 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’re granted a monthly credit.
Rate DN has a multiplier that applies to the system access charge, to the consumption at the various energy price tiers and to the base billing demand.
The multiplier depends on the type of dwelling and is established as follows:
To find out more about Rate DN, see Section 1 of Chapter 7 of the Electricity Rates [PDF 4.83 MB], approved by the Régie de l’énergie, as well as the addendum presenting section 7.2 [PDF 506 kB], effective December 1, 2019.
An “off-grid system” is a power system not connected to Hydro-Québec’s main grid.
A set amount, expressed in dollars per month or cents per day depending on the applicable rate, that the customer must pay for the electricity service.
Beginning April 1, 2019, the term fixed charge was replaced with system access charge.
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).
The formula for energy is as follows: energy (in kilowatthours) is equal to power (in kilowatts) multiplied by duration of use (in hours).
Energy (kWh) = power (kW) x time used (h).
Period from December 1 through March 31 of the next year, inclusive.
Period from April 1 through November 30, inclusive.
Maximum power measured during a given period. It is the higher of the following two values:
These power demands are determined for integration periods of 15 minutes.
Amount of electricity consumed in a useful manner to operate equipment, such as a motor or a heating or lighting system. Real power is expressed in kilowatts (kW).
Amount of electricity that Hydro-Québec supplies to a customer, expressed in kilovoltamperes (kVA). When it is used, apparent power breaks down into real power (kW), which runs devices, and reactive power (kVAR), which produces magnetic fields and which is not useful power for the customer.
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.
Electricity rate as at April 1, 2019.
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.