Hydro Quebec Case Study

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Background Established in 1944 by the Government of Quebec, Canada, Hydro-Quebec is a government-owned public utility based in Montreal. The company oversees the generation, transmission, and distribution of electrical power for all of the Province of Quebec. Hydro-Quebec was constructed during a time of large-scale public projects that began in the early 1940s and ran until the mid-1990s. Currently, electricity accounts for over 40% of the energy used in the province, but construction and operation of the projects has led to numerous conflicts with native, aboriginal, populations, particularly in the northern regions of the Province (Close up on Natural Resources, 2012). The company has become almost iconic in its representation of Quebec's economic development since World War II. The projects have fostered a number of sustained capital investments, local engineering expertise, the ability for the Province to grow and modernize based on electrical energy, and as a symbol of what cooperation and development can do (Norrie, et.al., 2008). Hydro-Quebec grew to the point that, in 2004, it had assets of $58 billion with 22,000 employees and revenue approaching $11 billion. The company serves more than 3.5 million customers and even has enough of a surplus to sell electricity at a rate 1/3 cheaper than that of those in New York. This oversupply resulted in an addition $384 million in revenue through exports to the United States (Dube, et.al., 2007). Since 1963,
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