Quebec weighs hydro increase to fund services

Quebec is considering an electricity rate hike to help fund a broad range of public services.

Finance Minister Raymond Bachand said it's one option to help support Quebec's public services including daycare and health care.

But no decisions have been made, he added.

"What we have to do in Quebec is decide what public services we want. What level of health services we want, what level of education we want, what level of family services we want," Bachand told CBC News.

"And we know what we want.We're going to maintain these services."

The increases under study could add an average of $265 a year to household power bills.

A hike could increase revenues by $1.4 billion per year, according to Bachand.

Hydro-Qubec president Thierry Vandal said he has no hand in any eventual rate hike. "It's not up to us," he said Tuesday, in Quebec City.

"It's not up to Hydro-Qubec to be part of that debate.That's a [legislative] debate, and for the population at large."

Quebec is facing a $3.9-billion deficit in coming years because of the recession. Increasing hydro rates is one option from a long list of measures to increase provincial revenues.