Hydro-Qubec seeks 1.1% rate increase from energy board

Hydro-Qubecis asking Quebec's energy board for permission toraise electricity rates by 1.1 per cent next year.

That would represent a monthly increase of 47 cents for a three-bedroom apartment, or $2.21 for a mid-size house.

The new rate would go into effect April 2018, but first has to be approved by the energy board.

• Hydro-Qubec rates going up again

Last year Hydro asked for a 1.6 per cent hike but was only granted an increase of 0.7 per cent.

David Murray, head of Hydro-Qubec'sdistribution division, saidthe increase would fit within the utility's strategy of maintaining a profit of 8.2 per cent.

"We're talking in the range of roughly $110 million total [in extra revenue]," Murray said Tuesday.

Hydro generated just over $2.8 billion in profits in 2016.

Murray also defended the utility's decision to spend $850,000 sponsoring Montreal's Formula E electric car race last weekend, saying it was part of an effort to attractglobal clients.

"We're trying to attract major players like data centres, so the visibility is important for us,"said Murray.

Hydro-Qubecalso said the 1.1 per cent increase is in line with its commitment to keep rate hikes below the provincial government's inflation estimates.