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Hydro‑Québec Consultants Defend Proposal to Double Data‑Centre Power Rates

Quebec’s energy regulator is reviewing the plan to determine if higher charges will curb data‑centre power growth or shift costs onto households.

Overview

  • Two Dunsky consultants told a public hearing on Thursday that Hydro‑Québec’s rate proposal should respond to a projected surge in data‑centre demand and defended the utility’s analysis before the Régie de l’énergie.
  • Dunsky presented a forecast that North American data‑centre energy use could rise about 133 percent from 2024 to 2030, a projection Hydro‑Québec cited to justify targeting large users.
  • Hydro‑Québec has proposed raising rates for data centres of five megawatts or larger to an average of 13 cents per kilowatt hour, roughly double the current large‑power average of about 6.8 cents per kilowatt hour.
  • Consultants pointed to examples in other North American jurisdictions where regulators created special rates for data centres to avoid raising residential bills, and they argued the higher charge would still be competitive in many markets.
  • If the Régie approves the change, data‑centre operating costs would rise, which could alter where companies build facilities, affect local job plans and require new grid planning to manage rapid load growth.