Quebec expects to pocket big with Hydro-Québec contracts in the United States

Quebec expects a strong increase in Hydro-Québec’s revenues thanks to electricity export contracts in the United States. The government’s forecasts, however, are based on an increase in the water level in the basins, which has affected sales in recent years.

• Also read: Hydro-Québec’s profits fall by 30%

“I would tell you that all things being equal, normally, we could predict that there will be more water,” declared the Minister of Finance, Éric Girard, Thursday morning, hastening to add that he “is not a meteorologist.”

In its economic update, the Legault government forecasts a considerable increase in Hydro-Québec’s revenues over the coming years. According to its estimates, these will increase to $2.6 billion next year (+12.9%), then to $3.9 billion the following year (+25.4%).

Called to explain these forecasts, Minister Girard mentioned the major contracts in Massachusetts and New York which will come into operation in 2025-2026, and a possible “return to normal” in water supply.

Earlier this week, Hydro-Québec announced a 30% drop in profits for the first nine months of the year. The state company rightly explained this drop by the lack of water in the basins for two years.

“The low water cycle, which has no impact on Quebec’s energy supply, therefore continues to result in a drop in our electricity sales on external markets. We will continue to monitor the evolution of the situation while ensuring we closely manage water resources,” mentioned Maxime Aucoin, executive vice-president of strategies and finance, during the presentation of Hydro-Québec’s results, Tuesday.

In 2022, the state-owned company recorded profits of $4.6 billion due to record exports to the United States.

More details to come…