The Committee on Agriculture, Fisheries, Energy and Natural Resources (CAPERN) is currently consulting on Bill 2 presented by the Minister of Economy, Innovation and Energy , Pierre Fitzgibbon. The text only takes up 10 articles, but it is of capital importance.
As the inflationary surge was not anticipated by the CAQ government, the bill limits the increase in residential electricity rates to approximately 3%. Under the current formula, the rates paid by Mr. and Mrs.me Everyone would jump 6% or 7%.
But the most important aspect of Bill 2 is the power it gives the minister to decide which major new industrial project will be granted the privilege of connecting to the Hydro-Québec network. At present, it is the 50 MW projects, the very large electricity consumers, which are subject to ministerial imprimatur. For other companies, Hydro-Québec has an obligation to supply them with electricity unless there is a major constraint. This threshold of 50 MW will increase to 5 MW, which still represents substantial consumption – the equivalent of the Bell Centre, we illustrate. Companies that Hydro-Québec designates as large-power customers.
At present, Hydro-Québec’s reservoirs are filled to the brim, but make no mistake: the surpluses will disappear by 2027. They simply cannot meet all the new demands that are pouring in. The state-owned company mentioned requests for power from the private sector in the order of 23,000 MW, the equivalent of 13 Romaine complexes, argued in parliamentary committee Dave Rhéaume, its vice-president ( still in office, that one) responsible for planning.
For new projects, Pierre Fitzgibbon estimates that 8,000 to 10,000 MW of energy could be distributed over the next 10 years. Choices have to be made: data centers, which we managed to attract, and cryptocurrency mining, which we stopped, are no longer popular. Even a promising sector such as green hydrogen, which requires 9,000 MW, is excluded, the minister ruled.
It goes without saying that it is up to the government to define its economic development policy. And its growth is largely based on the availability of renewable energy, which is not infinite.
Under the circumstances, the approach of Hydro-Quebec and the CAQ government seems coherent. The “first come, first served” rule for industrial projects is abandoned. Since January, the state-owned company first assesses the characteristics of the electricity demand of a given project, as well as its impact on the supply and the network. Then, it is up to the department to analyze the project’s economic spinoffs and its contribution to wealth creation, its compliance with the government’s industrial priorities and its social value. Based on the recommendation of his officials, the Minister (or the Council of Ministers, if applicable) authorizes or not the project.
The criteria and conditions should be known and applied fairly. Consideration should also be given to introducing what could be called a “Fitzgibbon mechanism” in order to prevent the Minister from having to extricate himself from appearances of conflict of interest. Pierre Fitzgibbon is a subscriber to the investigations of the ethics commissioner, Ariane Mignolet. Currently, the minister is the subject of two investigations on his part—that makes six—one of which concerns this pheasant hunting party between rich friends in period costumes, which is reminiscent of the short movie The time of the jesters, by Pierre Falardeau.
Obviously, many questions remain unanswered, whether in terms of supply, differentiated and increased tariffs for industrial customers, modulated tariffs for residential customers, application of the concept of energy sobriety and the pace of the transition . Also, since the Régie de l’énergie has been emasculated, its role, to say the least, must be clarified.
Pierre Fitzgibbon has indicated that he intends to table, possibly in the fall, a “massive” bill that must address these issues and lead to consultations on Quebec’s energy – and ultimately economic – policy. Given the importance of the issues, the Legault government would, in our opinion, benefit from tabling a white paper rather than a bill that has already been put together. It would thus encourage the broadest and most fruitful consultation possible. Need we remind you: the energy transition depends on the support of all players in society and the population in general.