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Demand Response – Commitment Option
This winter, take part in Hydro‑Québec's calls to reduce power demand and save on your electricity bill.
The DR – Commitment Option allows you to lower your company's energy costs. In exchange for the planned reduction of your electricity use during winter peaks, you'll receive substantial credits on your electricity bills*.
Learn about how this option works, its benefits and the eligibility conditions to determine if it's a good fit for your company.
An ideal offer if your company:
- Has enough control over its energy‑consuming facilities (for example, through automation) to meet its power demand reduction goals after receiving a peak demand event notification;
- Can reduce its consumption by at least 10 kW at every peak demand event;
- Wants to take advantage of the highest credits possible
Important dates
Enrollment: Before October 1st
Participation: Peak demand events take place between December 1st and March 31.
* To obtain the full credits, your company must meet the power demand reduction goal agreed upon with Hydro‑Québec. If this goal is not met, penalties may be deducted from the compensation paid.
On this page:
How it works
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Enrollment
First, you'll select a power demand reduction goal. This goal will determine the terms of your contract: number of reduction hours, days, maximum number of peak demand events, etc.
A representative will assist you to determine these terms.
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Participation
After you receive a peak demand event notification, postpone or reduce your energy use to meet your goal and collect credits.
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Credits
At the end of each consumption period, your total compensation is calculated and applied to your electricity bill, as applicable.
Process details
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Step 1Signing up
During the enrollment step, you'll determine the following terms and conditions, which will influence the value of your potential credits.
The greater your commitment, the higher the potential credit. However, keep in mind that you only receive the full credits if you comply with the terms of your commitment. See credit terms and conditions.
This goal is set based on your company's capabilities. The reduction amount selected impacts the value of the credits or penalties applied, as the case may be.
You must choose the total number of hours during which you will be called upon to reduce your power demand to the level of your target. This number of hours suits your business reality and influences the amount of your fixed credit. It is defined for the duration of the commitment (one to three winters).
You'll need to select the maximum number of peak demand events per day (one or two). This choice impacts the value of your variable credit.
You can commit for a period of one to three years. A longer commitment gives you a bonus on your fixed credit.
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Step 2Verifying email receipt before the start of each season
On the first and third Tuesdays in November, Hydro-Québec sends a test email to each person designated to receive peak demand event notifications.
On those days, the designated people must verify that the email address hydroquebec@communication.hydroquebec.com is not blocked by their spam filters.
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Step 3Participating in peak demand events
In anticipation of cold weather, Hydro-Québec sends notifications to inform you of the exact time period when your company needs to reduce its power demand. These time periods are known as peak demand events.
Participating companies can then plan to reduce or postpone activities during those time periods.
To earn the credits, you must reduce your company's power demand by an amount equal to or greater than your power demand reduction goal (in kW) for the entire duration of the peak demand event. Failure to do so may lead to penalties, applied for every 15 minutes of overrun.
To help companies meet their reduction goal, Hydro-Québec calculates a power demand threshold for them every month. Companies can then implement a plan to keep the energy consumption of their buildings and processes below this threshold during peak demand events. This can be achieved by reducing or postponing certain activities or using a backup energy source.
To help companies meet their power demand reduction goal, Hydro-Québec calculates their average maximum power demand for each month, based on their consumption history. We then subtract their power demand reduction goal from this maximum, to obtain a threshold that they must not exceed during peak demand events.
Maximum power demand threshold
Maximum power demand for a given month (kW) – 95% power demand reduction goal (kW) = Maximum power demand threshold (kW)
Example: A company has set a power demand reduction goal of 155 kW. In January, its usual maximum power demand is 190 kW. To meet its reduction goal of 155 kW (with a 5% error margin), it must not consume more than 43 kW (its maximum power demand threshold) at any time during a peak demand event in January.
Threshold calculation: 190 kW - (95% x 155 kW) = 43 kW
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Step 4Obtaining the credit
At the end of each billing period, your participation in peak demand events is tallied. Hydro-Québec checks whether you met your power demand reduction goal for the entire duration of each peak demand event.
- Every time you meet your goal, you receive a credit calculated as follows: your fixed credit, plus your variable credit, plus any bonuses for which you are eligible.
- When you don't meet your goal, a penalty is deducted from your total compensation, based on the applicable terms and conditions.
Your total credit is applied directly to your bills during the winter period.
Peak demand events and notifications
Peak demand events are the period of time indicated in the notification sent by Hydro‑Québec during which a company must reduce its power demand.
They take place between December 1 and March 31, and customers are given advance notice for each one.
Schedule
- Events may take place from Monday to Friday or from Monday to Sunday, based on your agreement
- The start time of events varies
- They run from December 1st to March 31st inclusive, including public holidays.
Duration and frequency
- Events may last a maximum of 4 to 5 h
- A maximum of 1 or 2 events can be held on the same day, depending on your agreement
- The minimum interval between two events is of:
- 4h if you select a maximum of 2 events per day;
- 12 hours if you select a maximum of 1 event per day.
Usual notice
Before each peak demand event, your designated contacts will be notified via email of the event date and its start and end times:
- no later than 3 p.m. on the business day preceding a peak demand event scheduled for before 4 p.m.;
- no later than 12 p.m. of the same day for a peak demand event scheduled after 4 p.m.;
- no later than 3 p.m. on the business day preceding two peak demand events scheduled on the same day.
Short notice
A shorter notice may be required under exceptional circumstances (e.g., freezing rain).
- It can be sent up to 2 h before a peak demand event
- A bonus of 70 ¢/kWh is provided for each kWh of energy actually curtailed during such events.
Eligibility
Criteria
- The company must have a Rate LG or L contract.
- The company must have the ability to reduce its power demand at Hydro‑Québec's request during peak demand events, for example through the use of automated equipment.
- Metering must be done by a communicating meter installed by Hydro‑Québec.
Exceptions
- Customers supplied by an off-grid system or a municipal or cooperative system are not eligible for this option.
- You must not benefit, for the same service contract, from rates Flex G, GD, Flex M, Flex G9 or CB, nor from the Winter Credit Option.
Financial assistance to automate your demand response management
Receive substantial financial assistance to install equipment designed to automate your building's demand response management.