Rate L
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.:
- 40% of the eligible costs
- 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 could be submitted to the Ministère des finances du Québec (MFQ) until
December 31, 2023. Terms and conditions are available on the Ministère’s website.
Important
Please note that changes have been made to the Financial Assistance for Investment Program to facilitate program administration. For details regarding these changes, please see the November 27, 2023, ministerial order available at www.finances.gouv.qc.ca.
Moreover, the deadline for applying for eligibility was December 31, 2023. For more information, please contact the Ministère des Finances at rabaiselectricite@finances.gouv.qc.ca.
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 1.44 MB].
Other rate options
If you have a Rate L contract, the following offerings may be of interest to you.
- Running-in
of new equipment by large‑power customers
If you’re putting new equipment or a new facility into service, your power demand could increase for a few months until your operations have been optimized. Under this option, you can be temporarily exempt from certain rate conditions applicable to power billing. - Equipment
testing by large‑power customers
If you have to run short tests after adding new equipment or modifying or optimizing existing equipment, your power demand may rise temporarily. Under this option, you don’t have to pay for the excess power used during the test period(s). - Additional
Electricity Option for large‑power customers
Under this rate option, you can use electricity beyond your normal consumption to fill a short-term order or meet an exceptional need at a lower price for both energy and power. - Interruptible
Electricity Options for large‑power customers
If you can lower your consumption at Hydro‑Québec’s request, these options offer a great opportunity for you to save on your electricity bill during the winter period.

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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).
The formula for energy is as follows: energy (in kilowatthours) is equal to power (in kilowatts) multiplied by duration of use (in hours).

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 volts (V) or less.
- Medium voltage: Voltage of more than 750 V, but less than 44 kilovolts (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 periods
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.