Montréal: For the fourth year in a row, Hydro-Québec has asked the Régie de l'énergie for a rate increase, 0.8%, that is below the forecast 2019 inflation rate in Québec of 1.8%. The increase would be effective April 1, 2019, for all residential customers and most business customers.
The requested increase is mainly due to:
• Increases in certain distribution costs: +0.1%
• Capital spending to expand and maintain the high-voltage transmission system in order to ensure secure, reliable service: +1.2%
• Higher electricity purchase costs: +2.2%
The company says two main factors have helped limit the requested increase to 0.8%: Growth in electricity demand, particularly as a result of the sales development strategy, and the impact of milder temperatures in recent winters.
Also, earnings variances of $46 million were recognized in 2017 and shared with customers, further limiting the rate increase requested.
With the dual aim of continuing to offer customers more choices while adopting new solutions for handling winter peaks, Hydro-Québec is proposing to add two dynamic pricing options effective in December 2019 that customers may choose to sign up for:
• Critical Peak Credit: No risk for the customer – Customer keeps current rate – 50¢ credit for each kWh curtailed at Hydro-Québec's request
• Critical Peak Rate: High price during peaks: 50¢/kWh, applicable to a maximum of 3% of the hours in the winter period – Low off-peak prices: about 2¢/kWh less than Rate D in the winter period.
Hydro-Québec's curtailment requests will apply to no more than 100 hours each winter. Various tools will be used to contact customers and provide them with support and information.
Increase in first tier: Hydro-Québec is asking the Régie de l'énergie to cap the first energy consumption tier at 40 kilowatt-hours (kWh) rather than 36 kWh. Customers will be able to use an additional 4 kWh per day at the lowest residential price tier, which will lighten the burden on small consumers who use electricity for heating, including low-income households.
Extension of Industrial Revitalization Rate: Hydro-Québec is proposing to extend the Industrial Revitalization Rate, which was implemented for large-power customers this year, to medium-power customers. This advantageous rate, designed to monetize energy surpluses while improving the competitiveness of industrial companies in Québec, is offered to customers that return all or part of a plant's unused production capacity to operation or convert an industrial process now running on fuel to electricity.