Rates and Bills
A carefully designed rate structure
With a view to sustainable development, Hydro-Québec is constantly seeking ways to optimize the operation of its power system and make the best possible use of the electricity it generates. We use a variety of means, including our rate structure, to encourage the wise use of electricity.
Why different rates?
Hydro-Québec uses different rates to ensure customer electricity consumption billing is fair. This means that customers with comparable electricity consumption profiles and costs of providing service are billed based on similar rates.
The company has 2.8 million customers responsible for 3.8 million residential, commercial, institutional and industrial service contracts. A base rate is applied to the electricity consumption of each customer. Some rates are designed for domestic electrical use and are available only to residential and agricultural customers. The other rates are suited for general use by business customers and are broken down by the customer's power demand.
Domestic Rates Electricity used exclusively for residential or agricultural needs |
General Rates Electricity used for any purpose other than residential or agricultural |
|---|---|
Rate D |
Rate G |
Rate Options
Some customers have consumption profiles that do not correspond to any base rate. Rate options tailored to specific situations and their respective costs are therefore available to customers who have requirements not covered by the base rates.
Domestic Rates Electricity used exclusively for residential or agricultural needs |
General Rates Electricity used for any purpose other than residential or agricultural |
|---|---|
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Rate G – General rate for low power
Application
Rate G applies to a contract whose minimum billing demand is less than 100 kW.
Profile
Hydro-Québec has about 295,000 service contracts at Rate G, which represents 90% of its business customers.
Structure of Rate G
| Fixed charge (monthly) | $12.33 |
|---|---|
| Price of power above 50 kW | $15.54/kW |
| Energy charge | |
| - First 15,090 kWh | 8.82¢/kWh |
| - Remainder of consumption | 4.64¢/kWh |
Rates effective April 1, 2009. Under no circumstances may this table be used to replace the Distribution Tarif.
Understanding rates
Rates have three main components that represent the cost categories of electrical service. In this way, rates reflect the cost of meeting customer electricity demand.
- Fixed charge
-
The fixed charge is unaffected by electricity consumption. It is set in relation to the fixed costs of providing electrical service, such as: Installing and reading the meter, metering, billing, collections and certain distribution system costs.
The fixed charge is also determined by the number of contracts at each rate.
- Energy
-
As the amount of energy consumed varies, the cost of energy varies as well.
- Demand
-
Basing billing solely on kilowatthours used would not be fair, since it would not account for the differences in cost, which can vary by the amount and duration of power demand.
Hydro-Québec equipment must be able to meet each customer's yearly maximum power demand. Even if power demand 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' installations.
- Calculation of billing demand
-
The demand charge is applied to the greater of the two following billing demand values:
- The maximum power demand, which corresponds to the greater of the two following values:
- Real power
- 90% of apparent power
- The minimum billing demand
or
In the case of Rate G, the demand charge only applied to consumption over 50 kW.
Minimum billing demand is set at 65% of the total maximum power demand during the winter.
- The maximum power demand, which corresponds to the greater of the two following values:
Additional factors affecting electricity rates
- Credit for supply at medium or high voltage
-
Hydro-Québec's general usage rates assume that electricity will be supplied at low voltage. Customers who have equipment to step down the voltage of the electricity they are supplied or wish to use medium- or high-voltage electricity represent reduced costs for Hydro-Québec. In return, they are granted a monthly credit on their demand charge. The credit is determined according to the supply voltage.
Nominal voltage between phases equal to or greater than: Monthly credit $/kW 5 kV, but less than 15 kV $0.567/kW 15 kV, but less than 50 kV $0.906/kW 50 kV, but less than 80 kV $2.016/kW 80 kV, but less than 170 kV $2.475/kW 170 kV $3.285/kW Rates effective April 1, 2009.. Under no circumstances may this table be used to replace the Distribution Tarif.
- Adjustment for transformation losses
-
Hydro-Québec only bills electricity that the customer uses, irrespective 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 the customer does not pay for losses, the utility grants an adjustment of 16.17¢/kW* on the billing demand. Conversely, if metering occurs after transformation, Hydro-Québec will absorb the losses.
* Rate effective April 1, 2009
Rate G-9 – General rate for low- and medium power
Application
Rate G-9 is designed for low- and medium-power customers who use the power at their disposal for only brief durations.
Rate G-9 is available to all customers whose maximum power demand has exceeded 65 kW in at least one of the 12 monthly billing periods.
Profile
Hydro-Québec has over 3,800 Rate G-9 electrical service contracts. These customers have equipment (pumps for golf courses, chair lifts) that use a significant amount of electricity over short periods, resulting in a load factor that is generally less than 30%.
Structure of Rate G-9
| Demand charge | |
|---|---|
| - Billing demand | 3.99¢/kW |
| Energy charge | 9.14¢/kWh |
Rates effective April 1, 2009. Under no circumstances may this table be used to replace the Distribution Tarif.
Comparison of bills calculated at Rates G-9 and M
New measure
Optimal Power Factor (PF): 90%
Electrical equipment, whether belonging to a customer or Hydro-Québec, is designed to operate at a relatively stable voltage. Through its tarif structure, Hydro-Québec reminds customers that a PF of at least 90% should be maintained at all times. A margin of up to 10% is tolerated.
What happens if your PF is below 90%?
Some customers make less than optimal use of the electricity provided to them, which forces Hydro-Québec to supply them with additional power and correct the impacts on the power system.
To ensure that such customers pay the real cost of their electricity supply and thus ensure fair treatment for all customers, a new charge will be applied progressively on each kilowatt of apparent power demand beyond the limits set in their contract.
For any difference between maximum power demand and real power, the charges are:
- $6.30/kW effective April 1, 2009
- $9.45/kW effective April 1, 2010.
For more information, consult The Real Cost of Electricity: New charge for power factor below 90% [PDF - 5,76 Mo].
Understanding rates
Rates have three main components that represent the cost categories of electrical service. In this way, rates reflect the cost of meeting customer electricity demand.
- Fixed charge
-
Rate G-9, like Rates M and L, do not have fixed charges since they do not represent significant fixed costs, unlike the domestic rates and Rate G.
- Energy
-
As the amount of energy consumed varies, the cost of energy varies as well.
- Demand
-
Basing billing solely on kilowatthours used would not be fair, since it would not account for the differences in cost, which can vary by the amount and duration of power demand.
Hydro-Québec equipment must be able to meet each customer's yearly maximum power demand. Even if power demand 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' installations.
- Calculation of billing demand
-
The demand charge is applied to the greater of the two following billing demand values:
- The maximum power demand, which corresponds to the greater of the two following values:
- La Real power
- 90% of apparent power
- The minimum billing demand
or
In the case of Rate G-9 the minimum billing demand is set at 75% of the maximum power demand during a consumption period that falls wholly within the winter period.
- The maximum power demand, which corresponds to the greater of the two following values:
Additional factors affecting electricity rates
- Credit for supply at medium or high voltage
-
Hydro-Québec's general usage rates assume that electricity will be supplied at low voltage. Customers who have equipment to step down the voltage of the electricity they are supplied or wish to use medium- or high-voltage electricity represent reduced costs for Hydro-Québec. In return, they are granted a monthly credit on their demand charge. The credit is determined according to the supply voltage.
Nominal voltage between phases equal to or greater than $/kW: Monthly credit $/kW 5 kV, but less than 15 kV $0.567/kW 15 kV, but less than 50 kV $0.906/kW 50 kV, but less than 80 kV $2.016/kW 80 kV, but less than 170 kV $2.475/kW 170 kV $3.285/kW Rates effective April 1, 2009. Under no circumstances may this table be used to replace the Distribution Tarif..
- Adjustment for transformation losses
-
Hydro-Québec only bills electricity that the customer uses, irrespective 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 the customer does not pay for losses, the utility grants an adjustment of 16.17¢/kW* on the billing demand. Conversely, if metering occurs after transformation, Hydro-Québec will absorb the losses.
* Rate effective April 1, 2009
Rate M – Rate for medium power
Application
Rate M applies to a contract whose minimum billing demand is at least 100 kilowatts, but less than 5,000 kilowatts.
Profile
Hydro-Québec has over 13,000 electrical service contracts at Rate M. These customers have a mixed profiles and operate in the industrial, business and institutional (office buildings, hospitals, etc.) sectors.
Structure of Rate M
| Demand charge | |
|---|---|
| - Billing demand | $13.44/kW |
| - Billing demand in excess of 133 1/3% of contract power | $14.37/kW |
| Energy charge | |
| - First 210,000 kWh | 4.51¢/kWh |
| - Remainder of consumption | 3.12¢/kWh |
Rates effective April 1, 2009. Under no circumstances may this table be used to replace the Distribution Tarif.
New measure for business customers
Automatic setting of minimum billing demand
As of April 1, 2009, new minimum billing demand rules apply to customers who sign a new contract under Rate M.
These customers are no longer required to specify a contract power. The minimum power they are billed is set at 65% of their maximum power demand during a consumption period wholly during the winter period, as is the case for Rates D, DM, DT and G.
This automatic mechanism for setting minimum billing demand will be applied to all Rate M customers starting in 2011.
Understanding rates
Rates have three main components that represent the cost categories of electrical service. In this way, rates reflect the cost of meeting customer electricity demand.
- Fixed charge
-
Rate M, like Rates G-9 and L, do not have fixed charges since they do not represent significant fixed costs, unlike the domestic rates and Rate G.
- Energy
-
As the amount of energy consumed varies, the cost of energy varies as well.
- Demand
-
Basing billing solely on kilowatthours used would not be fair, since it would not account for the differences in cost, which can vary by the amount and duration of power demand.
Hydro-Québec equipment must be able to meet each customer's yearly maximum power demand. Even if power demand 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' installations.
- Calculation of billing demand
-
The demand charge is applied to the greater of the two following billing demand values:
- The maximum power demand, which corresponds to the greater of the two following values:
- La Real power
- 90% of apparent power
- The minimum billing demand
or
For Rate M, this value is actually the contract power. It is specified by the customers, who may increase it at any time but may not decrease it for a minimum period of 12 months.
- The maximum power demand, which corresponds to the greater of the two following values:
Additional factors affecting electricity rates
- Optimization charge
-
Business customers subject to Rate M sign a contract with Hydro-Québec for the minimum billing demand they must pay for each consumption period. This is called the contract power.
When business customers consume considerably more power than agreed upon with Hydro-Québec and this amount exceeds 133 1/3% of their contract power, an optimization charge of $14.37/kW is applied to the excess.
New measure for business customers
Automatic setting of minimum billing demand
As a result of the introduction of automatic setting of the minimum billing demand, the optimization charge and the rules for modifying the contract power will no longer apply effective April 1, 2010.
- Credit for supply at medium or high voltage
-
Hydro-Québec's general usage rates assume that electricity will be supplied at low voltage. Customers who have equipment to step down the voltage of the electricity they are supplied or wish to use medium- or high-voltage electricity represent reduced costs for Hydro-Québec. In return, they are granted a monthly credit on their demand charge. The credit is determined according to the supply voltage.
Nominal voltage between phases equal to or greater than: Monthly credit $/kW 5 kV, but less than 15 kV $0.567/kW 15 kV, but less than 50 kV $0.906/kW 50 kV, but less than 80 kV $2.016/kW 80 kV, but less than 170 kV $2.475/kW 170 kV $3.285/kW Rates effective April 1, 2009. Under no circumstances may this table be used to replace the Distribution Tarif.
- Adjustment for transformation losses
-
Hydro-Québec only bills electricity that the customer uses, irrespective 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 the customer does not pay for losses, the utility grants an adjustment of 16.17¢/kW* on the billing demand. Conversely, if metering occurs after transformation, Hydro-Québec will absorb the losses.
* Rate effective April 1, 2009
Rate L – Rate for large power
Application
Rate L applies to contracts with a minimum billing demand of 5,000 kW and over.
Profile
Hydro-Québec has 270 customers and a total of 300 electrical service contracts at Rate L. These customers are major industries such as aluminum smelters, paper mills, etc. and large companies in the business and institutional sectors.
Structure of Rate L
| Demand charge | |
|---|---|
| Billing demand | 12,18 $/kW |
| Billing demand in excess of 133 1/3% of contract power | |
| - for each day during which an overrun occurs | $7.11/kW |
| - monthly maximum | $21.33/kW |
| Energy charge | 2.97¢/kWh |
Rates effective April 1, 2009. Under no circumstances may this table be used to replace the Distribution Tarif.
Understanding rates
Rates have three main components that represent the cost categories of electrical service. In this way, rates reflect the cost of meeting customer electricity demand.
- Fixed charge
-
Rate L, like Rates G-9 and M, do not have fixed charges since they do not represent significant fixed costs, unlike the domestic rates and Rate G.
- Energy
-
As the amount of energy consumed varies, the cost of energy varies as well.
- Demand
-
Basing billing solely on kilowatthours used would not be fair, since it would not account for the differences in cost, which can vary by the amount and duration of power demand.
Hydro-Québec equipment must be able to meet each customer's yearly maximum power demand. Even if power demand 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' installations.
- Calculation of billing demand
-
The demand charge is applied to the greater of the two following billing demand values:
- The maximum power demand, which corresponds to the greater of the two following values:
- Real power
- 95% of apparent power
- The minimum billing demand
or
For Rate L, this value is actually the contract power. It is specified by the customers, who may increase it at any time but may not decrease it for a minimum period of 12 months.
- The maximum power demand, which corresponds to the greater of the two following values:
Additional factors affecting electricity rates
- Optimization charge
-
Business customers subject to Rate L sign a contract with Hydro-Québec for the minimum billing demand they must pay for each consumption period. This is called the contract power.
On a day in the winter period, if a Rate L customer's maximum power demand exceeds 110% of the contract power, an optimization charge of $7.11/kW will apply to difference between 110% of the contract power and the maximum power demand on that day.
However, this charge will not exceed the equivalent of a monthly optimization charge of $21.33/kW applied to the part of the minimum billing demand in excess of 110% of the contract power.
- Credit for supply at medium or high voltage
-
Hydro-Québec's general usage rates assume that electricity will be supplied at low voltage. Customers who have equipment to step down the voltage of the electricity they are supplied or wish to use medium- or high-voltage electricity represent reduced costs for Hydro-Québec. In return, they are granted a monthly credit on their demand charge. The credit is determined according to the supply voltage.
Nominal voltage between phases equal to or greater than: Monthly credit $/kW 5 kV, but less than 15 kV 0,567 $/kW 15 kV, but less than 50 kV 0,906 $/kW 50 kV, but less than 80 kV 2,016 $/kW 80 kV, but less than 170 kV 2,475 $/kW 170 kV 3,285 $/kW Rates effective April 1, 2009. Under no circumstances may this table be used to replace the Distribution Tarif.
- Adjustment for transformation losses
-
Hydro-Québec only bills electricity that the customer uses, irrespective 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 the customer does not pay for losses, the utility grants an adjustment of 16.17¢/kW* on the billing demand. Conversely, if metering occurs after transformation, Hydro-Québec will absorb the losses.
* Rate effective April 1, 2009.
Self-generation net metering option
Hydro-Québec is continuing to act on its commitment to sustainable development. Among other things, it supports and encourages self-generators who produce electricity from their own facilities, using renewable energy sources. How? By offering a special kind of rate: the net metering rate option.
Running-in for new equipment
Reliable energy at stable prices
The Running-In Option is an arrangement that applies for a limited time under the Medium-Power (M) Business Rate.
Helping you carry out your projects
Planning to enlarge your facilities, modernize your equipment or launch some other innovative project? Chances are the Running-In Option is just what you need.
If you have to run short tests (say for a few hours) before putting new equipment into service, your demand power may rise.
As a result, your load factor will fall, pushing up the cost of the kilowatthours you consume.
Potential savings
With the Running-In Option, you can get around this problem. How? Simply by not having to pay for a momentary but significant increase in your demand power.
The specific provisions of this option allow us to calculate your bill differently.
With the Running-In Option, you can be temporarily exempted from conditions that apply when you exceed your contract power.
This lets you test new equipment without having to pay for the resulting increase in your demand power.
Simplified bill calculation
Calculating a bill under the Running-In Option involves three steps:
- Step 1
An average price (in ¢/kWh) is determined based on the last 12 consumption periods or, if there is insufficient data, on an estimate of consumption. - Step 2
This average price is increased by 4%. - Step 3
The average price, plus 4%, is applied to the energy consumed during the running-in period.
The demand power recorded during the running-in is therefore not used in the calculation, even if it is above the limit used in determining the average reference price (Step 1).
The calculation of the bill will vary slightly if your last contract did not cover 12 consumption periods with no Running-In Option.
Flexible terms and conditions
To take advantage of the Running-In Option, you must meet the following conditions:
- The power of the equipment being run in must equal at least 10% of the contract power in effect during the period preceding the request.
- You must advise Hydro-Québec in writing at least 30 days before the start of the running-in period, specifying the consumption period(s) to which you want the Running-In Period to apply.
- You must send Hydro-Québec a description of the type and power of your equipment for approval.
Interruptible electricity rate option
Hydro-Québec is continuing to act on its commitment to sustainable development. Among other things, it supports and encourages self-generators who produce electricity from their own facilities, using renewable energy sources. How? By offering a special kind of rate: the net metering rate option.
This is the minimum amount of power the customer must pay for. The threshold is set so that the customer pays its share of the costs incurred by the Distributor to meet its maximum power needs during peak periods. The minimum billing demand is determined by the conditions of each rate, as indicated in the Distribution Tarif.
Expressed in kilowatthours (kWh), energy is the power used by electrical installations over a given period of time. It is calculated as the power multiplied by the time during which it is used.
Energy (kWh) = power (W) x time used (h)
1,000
Expressed in kilowatts (kW), power demand is the total amount of electricity required by equipment at a given time. In more technical terms, it is the combined effect of voltage and current.
Demand (kW) = voltage (V) x current (A)
1,000
Real power is the component of apparent power that operates equipment that produces heat (lighting equipment, radiators, etc.) and is expressed in kilowatts (kW).
Apparent power is the power supplied by Hydro-Québec. When it is used, it is broken down into real power (kW), which runs equipment, and reactive power (kVAR), which results in the creation of magnetic fields.
Maximum power demand corresponds to the greater of the two following values:
- Real power
- 90% of apparent power
The winter period runs from December 1 through March 31, inclusively.
Voltage is the difference in electrical potential between two points.
It is expressed in volts (V) and is a function of power expressed in watts (W).
Voltage (V) = power (W)
current (A)
Load factor (LF) is the relationship between the real power consumed (in kWh) and the maximum power that can be used in a given period, as a function of the use of the maximum power demand. It is used to evaluate the use of maximum power demand for a given billing period.
LF = Consumption during the period (in kWh)
Maximum power demand x number of hours in the period x 100
The power factor is the ratio between real power and apparent power.
PF = Real Power
Apparent Power x 100
For Hydro-Québec, contract power represents the customer-selected power level it must be ready to supply at any time in response to customer demand. For the customer, it is the minimum power they have to pay for.
