Hydro Quebec headquarters in Montreal, Nov. 14, 2024. The Canadian Press/Graham Hughes
Quebec is incentivized to keep its hydroelectricity rates artificially low in order to keep receiving the largest share of Canada’s equalization payments, according to a new study from the Fraser Institute.
Even a small hike in Quebec electricity prices would lead to billions more in provincial revenue, according to the report, released May 7. However, much of the gain would be offset by a sharp reduction in equalization payments.
