The Government of Québec Introduces Bill 69

Today, Government Québec introduced its long-awaited Québec electricity market legislation. Entitled "Bill 69 - Loi assurant la gouvernance responsable des ressources énergétiques et modifiant diverses dispositions législatives’’ (translated to Act ensuring responsible governance of energy resources and amending various legislative provisions) which introduces significant changes to the Québec electricity landscape.

The Government of Québec will be responsible for developing a new 25-year Integrated Resource Plan (FR - Plan de gestion intégrée des ressources énergétiques), which will encompass a wide range of sources and technologies, including gas, oil, propane, and renewables. The primary objective of this plan is for the government to accurately forecast and plan for future demand, ensuring efficient resource allocation.

There will be a consultation period for the development of this plan. Hydro-Québec TransEnergie will use this Integrated Resource Plan to create an Electricity Supply Plan, which will require approval from the Régie de l’énergie. This Electricity Supply Plan will be updated every three years, providing a 15-year outlook.

Bill 69 empowers Hydro-Québec to directly negotiate bilateral agreements with partners, rather than requiring requests for proposals. This change aims to provide Hydro-Québec with greater flexibility. The Régie de l’Énergie will still need to approve these agreements and has the authority to require Hydro-Québec to go to market with RFPs if the bilateral deals are deemed too costly.

As anticipated, Article 60 of the Régie de l’Énergie Act has been amended to allow behind-the-meter deals for all renewable technologies, expanding beyond the current provision for biomass. These deals are contingent on not using Hydro-Québec's transmission network. Additionally, the projects must be situated on land owned by the proponent, who must have the necessary right of way.

The Québec Government is also introducing changes to privately owned hydroelectric facilities, increasing the development capacity from 50MW to 100MW.

Hydro-Québec's 2035 Action Plan outlines an investment of $90-110 billion over the next decade in growth-related projects, which is expected to result in higher rates. To address this, the government is establishing a financial assistance program to limit the increase on residential rates to 3%. Although Minister Fitzgibbon assured that there would be no tariff 'shocks,' commercial and industrial rates will be adjusted in line with Hydro-Québec's service costs approved by the Régie de l'énergie.

Hydro-Québec's consumption is projected to double by 2050, necessitating an additional 60TWh by 2035. With the enactment of Bill 69, Hydro-Québec gains increased flexibility and transparency. The Government anticipates this legislation will expedite project development by approximately a year. The Government aims to streamline procedures and enhance project development processes while limiting the cost to consumers.

We anticipate consultations on Bill 69 throughout the summer, providing stakeholders with the opportunity to comment on this crucial piece of legislation, which is central to the Government of Québec’s economic development objectives.

As always, we will continue to monitor this legislation and keep you informed of its developments.