2015–2016 Rate Application Start of Public Hearings at the Régie de l’énergie

Each year, Hydro-Québec Distribution files a rate application with the Régie de l’énergie detailing the budget it will need to provide electricity service for the next year. If the electricity rates in effect do not allow the company to recover the cost of providing service, an application for a rate adjustment is filed.

In early August, Hydro-Québec filed an application with the Régie de l’énergie [Québec energy board] for a 3.9% rate increase to come into effect April 1, 2015.

Public hearings regarding this application begin on December 5. Representatives of all interested parties will thus be able to review and debate the aplication.

The Régie de l'énergie will then issue a ruling in early 2015. By law, it is the Régie that sets Québec electricity rates.

Understanding the rate adjustment

Once again this year, more than half of the increase requested is to cover the cost of new supplies, chiefly wind power (+2.1%), and the higher price of heritage pool electricity (+0.4%), as provided by the Act respecting the Régie de l’énergie. Investments in the transmission and distribution systems in response to the growth in residential and commercial demand throughout Québec are also contributing to higher costs (+1.9%). However, Hydro-Québec will offset some of the additional costs by efficiency gains ( 0.5%).

A rigorous process

The Régie will review the proposed budget as part of a rigorous process involving many stakeholders, including consumer association representatives, and issue a ruling in early 2015, with the new rates taking effect April 1, 2015. By law, it is the Régie that sets Québec electricity rates.

Impact on electricity bills

If the Régie approves Hydro-Québec’s application, the monthly impact of the 3.9% rate adjustment will come to the approximate amounts shown in the table, depending on the type of home.

Hydro-Québec’s residential rates will still be the lowest in Canada and among the lowest in all of North America.