Program for electricity cost reduction applicable to Rate L customers

In the Québec Economic Plan of March 2016, the provincial government announced the implementation of a program to stimulate capital investment by large industrial companies that are located in Québec and are billed at Rate L.

These companies can receive assistance in the form of reduced electricity costs, enabling them to recoup up to 50% of eligible project costs, i.e.:

  1. 40% of the eligible costs
  2. Up to 10% of the eligible costs incurred as part of efforts to reduce GHG emissions

This assistance corresponds to a maximum electricity bill reduction of 20% for a period not to exceed four years (or eight years for projects worth $250 million or more).

In November 2019, the government extended the program for another four years. Thus, project requests can be submitted to the Ministère des finances du Québec (MFQ) until December 31, 2023. Terms and conditions are available on the Ministère’s website.

Industrial rate for large‑power customers

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

More information

This information has been simplified. For more details about Rate L, consult Section 1 of Chapter 5 of the Electricity Rates [PDF 2.35 MB].

Other rates or rate options

If you have a Rate L contract, the following offerings may be of interest to you.

Contract power

Minimum demand that a large-power industrial rate customer (Rate L) agrees to pay and that Hydro-Québec must be ready to supply at any time in response to the customer’s demand.

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.

Winter period

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

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.

Power factor

Ratio of real power (in kW) and apparent power (in kVA). The power factor is expressed as a percentage and indicates the efficiency with which the customer uses the electricity provided. Hydro-Québec encourages its customers to maintain a power factor of at least 90% or 95%, depending on their rate.

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.