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1962 – Hydro-Québec

Quebec is a province rich in hydroelectric potential; huge river drainage systems dominate its geography. Since the advent of electricity generation in the late 19th century, private capital was largely responsible for harnessing this energy source. In 1944, the Quebec government passed a law expropriating the electric and gas assets of the Montreal Light, Heat and Power Company Consolidated. This partial nationalization created the Quebec Hydro Electric Commission, soon commonly referred to as Hydro-Québec.

Over the next couple of decades, development of power-generating facilities continued. The remaining privately owned electricity companies were nationalized in 1963. This action greatly expanded Hydro-Québec’s generating capacity, and made it responsible for generating and distributing electricity throughout Quebec. This was central to Quebec’s economic strategy to generate electricity at home and thereby reduce its dependence on external power sources.

The nationalization of the electricity sector in 1963 resulted in lower rates for Quebec consumers, eliminated rate disparities and curbed rate fluctuations. Before it was fully nationalized, Hydro-Québec’s power production was 3,000 megawatts (MW). By 2002, its generating capacity approached 33,000 MW. Over 93% of this energy was produced by hydroelectric generating stations.

In 1965, Hydro-Québec designed and built 735 kilovolt (kV) transmission lines to transport electricity. This development allowed for more efficient long-distance transport of electricity, and minimized the energy loss that comes with transmission over long distances. This technology helped revolutionize the industry and made it possible to develop hydroelectric resources in northern Quebec.

In the 1960s and 1970s, Hydro-Québec built numerous hydroelectric projects, which greatly increased its generating capacity. Several hydroelectric projects on the St. Lawrence River and the massive James Bay Complex account for much of the company’s hydroelectric generating infrastructure.

In 1997, deregulation swept through North American wholesale electricity markets. With the opening of the power market, Hydro-Québec gave access to its transmission system to the entire North American market. It also sells electricity on the United States wholesale market. Its sales of electricity outside Quebec grew from $600 million in 1997 to $3.5 billion in 2002.

Hydro-Québec had more than 18,000 permanent employees in 2002.

Hydro-Québec has met some challenges. In January 1998, a severe ice storm destroyed a vast amount of its distribution network. Under the weight of accumulated snow and ice, towers collapsed, transmission lines were destroyed and electricity conductors were detached. Parts of Quebec were without power for between a few days and several weeks. The consequent paralysis underlined Quebec’s high degree of reliance on hydro power—the province has few oil and gas resources. The subsequent reconstruction made Hydro-Québec’s distribution network stronger and more reliable.

Hydro-Québec is a leading producer of renewable energy and a major North American energy distributor, supplying electricity to over 3.5 million customers. It has agreed to purchase almost 1,000 MW of wind power from independent power producers. Construction of the new wind turbines and infrastructure is scheduled to be completed between 2006 and 2012. As Hydro-Québec embraces new technologies and sets standards through its innovations, it will continue to play a pivotal role in the North American electricity market.

Links

Milestones
Source: Hydro-Québec
http://www.hydr oquebec.com/learning/histor y/faits_saillants.html

Energy Generation on the St. Lawrence
Source: Government of Canada
http://collections.ic.gc.ca/stlauren/econ/ec_energy.htm

Ice Storm ’98
Source: Environment Canada
http://www.msc-smc.ec.gc.ca/media/icestorm98/index_e.cfm

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