Financial Profile of the Company

Hydro-Québec generates, transmits and distributes electricity. It is responsible for providing Quebecers with a secure electricity supply. To meet growing demand, it is continuing to develop hydropower, complemented by wind power purchased from independent producers.

Hydro-Québec also conducts energy-related research and develops new generation, transmission and distribution technologies. The company has actively promoted energy conservation for a number of years by offering energy efficiency programs for all customer categories.

To meet its financing needs, Hydro-Québec turns to the bond market. Its sole shareholder is the Québec government, which guarantees most of its borrowings (see page 27). As of December 31, 2008, Hydro-Québec's assets totaled $66.8 billion while its total debt amounted to $36.4 billion.