Comparison of electricity prices in major North American cities : rates effective May 1, 2001

This report presents the major findings of a comparative evaluation of electricity prices in major North American cities, by customer category, based on rates in effect on May 1, 2001. Besides Hydro-Quebec, the comparison includes 21 utilities, of which 11 serve the major cities across Canada and 10 utilities located in 10 American states. Hydro-Quebec is one of the largest electric utilities in North America with one of the most extensive systems. Of the 190 billion kilowatt-hours delivered annually, 37 billion are exported to neighbouring provinces in Canada and to the United States. 93 per cent of the generating facilities are hydroelectric. The report covers consumption levels, taxes, optional programs, location, time-of-use rates, exchange rates, and other factors that affect electricity prices such as fuel adjustment clauses for utilities that produce electricity in thermal power plants. It was noted that Hydro-Quebec has frozen its rates until April 2002, keeping them at the same level as those set on May 1, 1998. The report showed that Hydro-Quebec has maintained a competitive position at a level similar to or better than previous years. Three of the 11 Canadian utilities implemented rate increases between May 1, 2000 and May 1, 2001, and 2 utilities reduced their rates. Two utilities modified their rate structure following deregulation. During the same time period, 3 of the 10 utilities in the United States increased their rates, and one reduced them. The rates in the United States varied regardless of increases or freezes because many utilities had incorporated adjustment clauses. Quebec residential consumers enjoy the second lowest rates in North America. Only Winnipeg ranked higher. Hydro-Quebec has also remained competitive when it comes to small, medium and large power customers. It ranked fifth for small power customers, third for medium power customers, and third for large power customers. tabs., figs., appendices