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Tarif CD
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LegislationCA

Tarif CD

Hydro-Québec's proposed electricity tariff for data centres of 5 MW or more.

Tarif CD would make Quebec data centres pay for grid capacity they reserve but do not use. Quebec's energy regulator heard it from 1 to 9 October 2026 and sits again in December.

Last refreshed: 18 October 2026 · Appears in 1 active topic

Key Question

Should data centres pay for grid capacity they reserve but never use?

Timeline for Tarif CD

#16 9 Oct

Set the rates and under-use premium under review

Data Centres: Boom and Backlash: Quebec data centres face under-use fee
View full timeline →

Background

Tarif CD is the electricity rate Hydro-Québec has proposed for data centres that commit to at least 5 MW. Hydro-Québec Distribution filed it with the Régie de l'énergie on 19 February 2026, in docket R-4333-2026, alongside an adjustment to its rate for Cryptocurrency mining. The regulator held hearings from 1 to 9 October 2026 and has set further sessions for 7 to 11 and 15 to 18 December. No decision on the merits had been published by mid-October.

The draft has four charges. Demand costs C$32.70 a kilowatt each month, and energy costs 8.71 cents a kilowatt-hour. Power drawn above 110% of the agreed ramp-up carries a 17.42-cent surcharge. A site whose peak demand stays below 60% of its contracted forecast for 12 months owes a premium of C$92.28 a kilowatt on the gap.

That under-use premium is the new idea: it bills a data centre for capacity it holds back from other customers. On 7 October a joint intervener for large industrial consumers filed its own wording for one article of the tariff. Ontario is taking a related line, proposing that data centres above 1 MW pay the full cost of their electricity with no cash incentives.

Common Questions

Reference

What is Hydro-Québec's Tarif CD?
A proposed electricity rate for data centres committing to at least 5 MW, filed with Quebec's Régie de l'énergie on 19 February 2026 in case R-4333-2026. It was heard from 1 to 9 October 2026, with more sessions set for December.Source: Régie de l'énergie du Québec, dossier R-4333-2026
When will the Régie de l'énergie decide on Hydro-Québec's data-centre tariff?
Not before further hearing sessions on 7 to 11 and 15 to 18 December 2026. No decision on the merits had been published by mid-October 2026.Source: Régie de l'énergie du Québec, dossier R-4333-2026
Why would Quebec data centres pay a fee for unused power?
The draft adds a premium of C$92.28 a kilowatt where peak demand stays below 60% of the contracted forecast for 12 months, so data centres pay for capacity they reserve but do not use.Source: Hydro-Québec filing, R-4333-2026
How much would data centres pay under Hydro-Québec's proposed rate?
The draft charges C$32.70 a kilowatt of billed demand each month plus 8.71 cents a kilowatt-hour, with a 17.42-cent surcharge on power above 110% of the agreed ramp-up.Source: Hydro-Québec filing, R-4333-2026
Source Material

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 18 October 2026. Editorial standards.