General questions
A peak demand event is a period indicated by Hydro‑Québec in a notification sent to the customer's designated contacts during which the customer must reduce their power demand.
Peak demand events can take place:
- From December 1 to March 31 inclusive, excluding December 24, 25, 26 and 31, January 1 and 2, as well as Good Friday and Easter Monday when they fall within the winter period.
No, your devices do not need to be automated for you to participate in peak demand events. However, should you wish to do so, you could receive financial assistance if you submit a project.
Some key measures to consider
For production processes (mainly for industrial customers)
- Shifting production to outside peak demand events or modifying work schedules
- Partial shutdown of production during peak demand events
- Pausing the most energy-intensive or non-essential processes
- Pausing production and maintenance activities during peak demand events
- Using control systems to activate power demand reduction measures and the gradual return to normal following a peak demand event
Measures targeting buildings (institutional, commercial and industrial)
- Using an alternative energy source
- Energy storage
- Adjusting the HVAC equipment settings
There are several terms and conditions associated with the DR Commitment Option. Depending on the sub-option chosen, your organization may not be affected by the peak demand event in question.
Financial assistance to automate your building's demand response management
Installing a building automation system is a great way to maximize your benefits and simplify the application of DR management measures. The financial assistance covers three measures:
- Programming DR management controls in the existing building automation system (BAS);
- Adding control points and programming controls in the existing BAS;
- Installing a BAS with control points and DR management programming controls.
Financial support for an energy analysis
Bonus financing is available for analyses that combine energy efficiency and demand response management measures.
The fixed credit is the product of the power demand that you committed to curtail and the amount of the credit per kilowatt, based on the sub-option you selected. It is applied if the reduction goal is reached.
The variable credit is the incentive offered in exchange for the energy curtailed during peak demand events. It is added to the fixed credit and is calculated for each billing period. This credit varies based on the maximum number of peak demand events included in the sub-option selected.
The maximum power demand threshold varies from month to month and represents the total power demand typically used by your company for the same period, less 95% of the reduction goal.
It is calculated as follows:
Maximum power demand for the current month (kW) – 95% of the reduction goal (kW) = Maximum power demand threshold (kW)
- Increased credits
- Efficiency gain for automating your operations
- Contribution to the collective effort behind Québec's energy transition
If that happens, an overrun charge (penalty) is deducted from the fixed credit, in keeping with the applicable terms and conditions.
Overrun deduction
This charge applies if you exceed your maximum power demand threshold during a peak demand event.
According to the applicable terms and conditions, the amount deducted cannot exceed the maximum deduction set for a peak demand event, and the sum of overrun deductions for a given winter period cannot exceed 150% of the amount that would have been paid as a fixed credit.
Early termination deduction
This charge applies if your company decides to terminate a multi-year commitment before it expires.
If this occurs, Hydro-Québec deducts an amount equal to 50% of the credits calculated for the year of termination, multiplied by the number of years remaining in the commitment.
Yes, you'll receive the fixed credit.
For the moment, you'll find this information on your bill.
"Average maximum daily power" refers to the average of the highest real power demands recorded each day during the consumption period in question, outside of the recovery periods. The calculation is based on the days of the week in the selected sub-option of the Demand Response – Commitment Option (DR Commitment Option), i.e., weekdays only or else weekdays plus weekends. Rate L customers are entitled to recovery periods when there have been one or more peak demand events during the winter. These recovery periods can occur between 10 p.m. and 6 a.m. from Monday to Thursday, or else between 10 p.m. on Friday and 6 a.m. the following Monday.
The consumption period in question is the billing period that's underway.
For instance, if a plant is non-operative during a peak demand event, there will be no impact on the variable credit, since the power demand reduction is calculated based on the average maximum daily power for the consumption period in question, i.e., the billing period that's underway.
Whatever the reason for non-compliance with the commitment, the bonuses/penalties will still apply. That's why it is important to identify a power demand reduction goal that can be reasonably attained and to select the appropriate sub-option as a result.
Yes. The DR Commitment Option will be compatible with Rates M and G as of April 2026.
In the current energy context, peak demand events must be expected to occur during all the planned hours in the sub-option selected at time of enrollment, regardless of the number of hours in question. However, for certain peak demand events, Hydro‑Québec will not use this demand response method if it is unnecessary.
The fixed credit is always based on the customer's commitment, regardless of the number of hours of peak demand events. In this case, it would correspond to the targeted number of kilowatts multiplied by the credit offered for 100 hours. As for the variable credit, it is calculated based on the actual energy curtailed during each of the 60 hours of peak demand events.
Yes. You can access the calculator through your account representative.
With the DR Commitment Option, the notice period is similar to that of the current DR Option, with the exception of short notice (two hours) issued in the event of exceptional circumstances (e.g., freezing rain). In this case, a credit of 70¢/kWh for each kilowatthour of effective hourly interruptible power is provided for each peak demand event hour.
Under the DR Commitment Option, the start times for peak demand events may vary, with each event potentially lasting from four to five hours.
The minimum interval between two peak demand events is four hours, for a maximum of two events per day, and 12 hours for a maximum of one event per day.
The fixed and variable credits are applied directly to the bill at the end of each billing period covered by the agreement.
The variable credit will increase, since it is based on the actual power reduction achieved during each peak demand event hour. The fixed credit will remain unchanged, since it is based on the agreement.
If you make a multi-year commitment, your power reduction goal, participation level and number of interruptions cannot be modified while the agreement is in effect.
If your commitment is for one year, you will be able to modify the terms once this period has ended.
Yes. As of April 1, 2026, the Demand Response – Leeway Option will replace the current DR Option. Details will be available in spring 2026. Until then, please refer to the document Electricity Rates for more information.