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Rate DN

  • Overview
  • Billing

Structure of Rate DN

First tier: identical to rate D, which applies south of 53rd parallel

Residential customers served by off-grid systems north of the 53rd parallel pay the same system access charge and the same price for electricity used in the first tier of kilowatthours (kWh) as customers south of the 53rd parallel. As for Rate D, the first tier for Rate DN is equal to 40 kWh times the number of days in the consumption period.

Did you know?

North of the 53rd parallel, because fuel oil is the main source of energy used for heating space and water, customers typically use only between 15 and 22 kWh of electricity a day, depending on the time of year. The basic uses for a typical home, such as lighting or electrical devices, are therefore covered by the first tier, in which the number of kilowatthours at the lowest price is calculated as follows: 40 kWh a day times the number of the days in the consumption period.

Only the kilowatthours above that threshold are billed at a higher price than the one applicable south of the 53rd parallel. In this way, Hydro-Québec’s rate structure encourages customers to use energy efficiently, by opting for the best source of energy for heating—and north of the 53rd parallel, that’s oil.

Rate DN prices in effect

  • System access charge for each day in the consumption period, times the multiplier: 42.238¢
  • Price of energy for electricity used, up to the product of 40 kWh times the number of days in the consumption period and the multiplier (1st tier): 6.319¢/kWh
  • Price of energy for the rest of the electricity used (2nd tier): 43.060¢/kWh
  • Charge for power demand exceeding the greater of 50 kW or 4 kW times the multiplier: 6.455$/kW

Rates effective April 1, 2022. This table does not replace the Electricity Rates document in any way whatsoever.

Special connection charge for off-grid systems (except the one in Schefferville)

If you have a Rate DN service contract, you shouldn’t heat your home and water with electricity, because it will cost you more.

In fact, if you choose to heat your home electrically, you will have to pay, in addition to applicable charges at Rate DN, a “special charge for connecting to an off-grid system [PDF 4.69 MB].”

More specifically, the “special charge for connecting to an off-grid system” applies in the following cases:

  • When your connection request concerns an off-grid system located north of the 53rd parallel, except the Schefferville system, and is for electricity used for heating space or water
  • When a space- or water-heating system is converted to electricity

It does not apply if your connection request is for temporary use of electric heaters to dry joints and paint during construction work.

Applicable charges

The “special connection charge for off-grid systems” amounts to the following:

  • $5,000 for the first 20 kW
  • $250 per kilowatt after that

See Section 20.1 of the Conditions of Service [PDF 4.69 MB].

Understanding rates

Rates generally have three main components that reflect the actual costs incurred by Hydro-Québec to provide electrical service.

System access charge

The system access charge, expressed in cents per day for this rate, is a set amount that you pay for electricity service.

Energy

The amount billed for energy varies based on your consumption.

Power demand

Hydro-Québec must be able to meet its customers’ maximum power demand at all times. Even though power demand is variable throughout the year and consumption is sometimes minimal, Hydro-Québec’s rates still have to cover the cost of operating and maintaining the power system. For this reason, it’s important that rates for large electricity consumers include billing for maximum power demand. This reflects the costs associated with meeting power demands of varying size and duration.

Calculating billing demand

The demand charge is applied to the greater of these two billing demand values:

  • Maximum power demand corresponding to the greater of these two values:
    • Real power
    • 90% of apparent power

or

  • Minimum billing demand

For Rate DN, the minimum billing demand is set at 65% of the maximum power demand during a consumption period that falls wholly within the winter period included in the 12 consecutive monthly periods ending with the consumption period in question.

Electricity rates also include other components

Credit for medium- or high-voltage supply

Hydro-Québec grants a supply credit of 0.2504¢ per kilowatthour to Rate DN customers to whom it supplies electricity at 5 kV or higher.

Domestic rates, like the other rates, assume that electricity will be supplied at low voltage. If you have equipment to step down the voltage of the electricity delivered to you or if you use electricity at medium or high voltage, that means reduced costs for Hydro-Québec. In return, you’re granted a monthly credit.

What’s the multiplier?

Rate DN has a multiplier that applies to the system access charge, to the consumption at the various energy price tiers and to the base billing demand.

The multiplier depends on the type of dwelling and is established as follows:

  • For apartment buildings or community residences consisting of units, the multiplier corresponds to the number of units (e.g., the multiplier for a community residence consisting of 25 units is 25).
  • For a community residence with both dwellings and rooms, the multiplier corresponds to the number of dwellings, plus 1 for the first 9 rooms and 1 for each additional room (for example, the multiplier for a community residence with 5 dwellings and 5 rooms is 6).
  • For a rooming house or community residence with 10 rooms or more, the multiplier is 1 for the first 9 rooms, plus 1 for each additional room (for example, the multiplier for a community residence with 15 rooms is 7).

More information

To find out more about Rate DN, see Section 1 of Chapter 8 of the Electricity Rates [PDF 2.35 MB].

Other useful information

  • Hydro-Québec’s Conditions of Service [PDF 4.69 MB]
  • Helping you understand your electricity rate
  • Details on the service charges associated with your contract
  • Glossary
  • Video explaining power
  • Tips on how to lower your electricity bill

How to request electricity service

  • Become a customer
  • You are a Hydro-Québec customer and want to receive electricity service at an additional address

Off-grid system

An “off-grid system” is a power system not connected to Hydro-Québec’s main grid.

System access charge

A set amount, expressed in dollars per month or cents per day depending on the applicable rate, that the customer must pay for the electricity service.

Beginning April 1, 2019, the term fixed charge was replaced with system access charge.

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).

Energy (kWh) = power (kW) x time used (h).

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).

Winter period

Period from December 1 through March 31 of the next year, inclusive.

Summer period

Period from April 1 through November 30, 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).

Real power

Amount of electricity consumed in a useful manner to operate equipment, such as a motor or a heating or lighting system. Real power is expressed in kilowatts (kW).

Apparent power

Amount of electricity that Hydro-Québec supplies to a customer, expressed in kilovoltamperes (kVA). When it is used, apparent power breaks down into real power (kW), which runs devices, and reactive power (kVAR), which produces magnetic fields and which is not useful power for the customer.

Minimum billing demand (minimum demand)

The minimum amount of power that the customer must pay for each consumption period, regardless of electricity use. The threshold is set so that you pay your share of the costs Hydro-Québec incurs to meet your power needs at all times. The minimum billing demand is determined by the conditions of each rate, as indicated in the Electricity Rates.

  • For all rates except Rate L, the minimum billing demand is automatically determined based on the previous winter’s maximum power demand.
  • Rate L customers must set their own minimum billing demand, called “contract power,” based on the amount of electricity they expect to use.

Rate

Electricity rate effective April 1, 2022.

Low voltage: Voltage of 750 V or less.

Medium voltage: Voltage of more than 750 V, but less than 44 kV.

High voltage: Voltage of 44 kV or more.

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