S-41 - Act respecting municipal and private electric power systems

Updated to 1 October 2024

This document has official status.

chapter S-41

Act respecting municipal and private electric power systems

This Act was formerly entitled “Electricity Municipalization Act”. The title was replaced by section 93 of chapter 23 of the statutes of 1988.

The Minister of Economy, Innovation and Energy is responsible for the application of this Act except for the responsibilities assigned to the Minister of Municipal Affairs, Regions and Land Occupancy under this Act. Order in Council 1113-2024 dated 17 July 2024, (2024) 156 G.O. 2 (French), 5361.

1988, c. 23, s. 93.

DIVISION I APPLICATION OF ACT

1. This Act shall apply to every local municipality and all the provisions of any general law or special Act inconsistent with those of this Act are repealed or amended accordingly.

R. S. 1964, c. 186, s. 1; 1996, c. 2, s. 945.

DIVISION II INTERPRETATIVE PROVISIONS

2. In this Act, unless the context otherwise requires:

(1)  The word “Board” means the Régie de l’énergie;

(2)  The words “municipal council” mean the council representing and administering any municipality which has adopted a resolution under section 3 of this Act;

(3)  The words “public service” mean any municipality, partnership, person or association of persons, their lessees, trustees, liquidators or receivers, other than Hydro-Québec, who or which own, operate, administer or control a system for producing, transmitting, distributing or selling electricity for light, heat, energy or power purposes;

(4)  The words “electricity system” mean a system of lighting, heating or energy or power production by means of electricity.

R. S. 1964, c. 186, s. 2; 1977, c. 5, s. 14; 1988, c. 23, s. 94; 1996, c. 2, s. 946; 1996, c. 61, s. 132; 1999, c. 40, s. 313; 2005, c. 6, s. 229.

DIVISION III MUNICIPALIZATION OF ELECTRICITY

3. A local municipality may establish an electricity system for public and private needs.

It may adopt by-laws on the administration of the system.

R. S. 1964, c. 186, s. 3; 1996, c. 2, s. 951; 1999, c. 40, s. 313; 2005, c. 6, s. 230.

4. (Repealed).

R. S. 1964, c. 186, s. 5; 1987, c. 57, s. 804; 1996, c. 77, s. 58.

5. The municipal council is vested with all necessary powers to establish and administer the electricity system.

It may, in order to meet the interest on the sums expended for the establishment thereof and to create a sinking fund, impose, by by-law, on all owners or occupants of houses, shops or other buildings, a special annual tax on the assessed value of such houses, buildings and establishments, including the ground.

The sinking fund created in virtue of the preceding paragraph shall be invested and administered in the same manner as that mentioned in section 548 of the Cities and Towns Act (chapter C‐19).

R. S. 1964, c. 186, s. 6; 2005, c. 6, s. 231.

6. The municipal council may, if it deem it necessary so to do in order to establish the electricity system:

(1)  Compel the owners or occupants of lands situated within or without the territory of the municipality to permit and allow all the necessary work to be done;

(2)  Appropriate lakes, non-navigable rivers, ponds, springs and water-courses having their source or flowing on private property, without, however, prejudicing the rights of the riparian owners to make use thereof, as well under the common law as under the laws respecting water-courses, subject to expropriation proceedings, failing agreement between the interested parties;

(3)  Take possession of the whole or of a portion of the watershed of any lake, non-navigable river, pond, spring and water-course situated within or without the territory of the municipality and shown on a plan drawn by a land surveyor, subject to expropriation proceedings, failing agreement between the interested parties.

R. S. 1964, c. 186, s. 7; 1988, c. 23, s. 95; 1996, c. 2, s. 947.

7. The municipal council may adopt, amend or repeal by-laws:

(1)  (Paragraph repealed);

(2)  To prevent fraud in connection with the quantity of electricity supplied;

(3)  To protect the wires, pipes, lamps, apparatus and other articles serving for the distribution of electricity;

(4)  To prescribe, in accordance with section 369 of the Cities and Towns Act (chapter C‐19), penalties for infringement of any by-law adopted under this Act.

R. S. 1964, c. 186, s. 8; 1990, c. 4, s. 606; 1999, c. 40, s. 313; 2005, c. 6, s. 232.

8. The special tax imposed under section 5 and the prices fixed under the Act respecting municipal taxation (chapter F‐2.1) shall be collected according to the regulations and in the manner prescribed for general taxes.

They must in no case involve, for any class of consumers of the electricity system of a municipality, a higher cost than would result to an equivalent class of consumers of electricity under the tariff set out in Schedule I to the Hydro-Québec Act (chapter H-5) for electricity supplied by Hydro-Québec.

R. S. 1964, c. 186, s. 9; 1980, c. 9, s. 1; 1996, c. 2, s. 951; 1996, c. 61, s. 133; 2005, c. 28, s. 134; 2019, c. 27, s. 18.

9. Any citizen or any legal person may use or refuse to use, in any building, house or establishment under his or its control, the electricity supplied by the municipality.

R. S. 1964, c. 186, s. 10; 1996, c. 2, s. 951; 1999, c. 40, s. 313.

10. The persons appointed for the operating of the electricity system may enter, at any reasonable time, any building, house or establishment and upon any property, to assure themselves whether the regulations adopted under this Act are being faithfully carried out.

It shall be the duty of the owners or occupants of any such building, house, establishment or property to permit such persons to enter and to make their visit or examination, under penalty of a fine of $20 or more.

Every person exercising the powers provided for in the first paragraph shall, on request, identify himself and produce a certificate of his capacity signed by a person designated by the municipality.

R. S. 1964, c. 186, s. 11; 1986, c. 95, s. 201; 1990, c. 4, s. 607; 1996, c. 2, s. 951; 1999, c. 40, s. 313.

11. Every owner or occupant of a house, construction or land situated in the territory of the municipality by which an electricity system is established under this Division, shall be bound to allow the necessary poles and wires to be placed, and all other work to be carried out on his house, construction or land, subject to payment of damages for any injury actually suffered.

R. S. 1964, c. 186, s. 12; 1996, c. 2, s. 948; 1999, c. 40, s. 313.

DIVISION IV PERFORMANCE OF WORK IN COMMON

12. (1)  The municipalities which adopt a resolution under section 3, or any of them, may agree together to carry out together the work mentioned in the said section 3 and exercise together the rights conferred under section 6.

(2)  The municipalities which avail themselves of the provisions of subsection 1 must each adopt a uniform resolution for such purpose and submit it to the qualified voters for approval.

(3)  The apportionment of the expenses necessitated for the carrying out in common of the work and the exercising in common of the above mentioned rights shall be effected under an agreement entered into between the municipalities concerned, and, failing such agreement, according as the Board may determine.

R. S. 1964, c. 186, s. 13; 1965 (1st sess.), c. 57, s. 2; 1996, c. 2, s. 951; 1996, c. 77, s. 59; 2005, c. 6, s. 233.

DIVISION V PARTITION AND MANAGEMENT, IN CERTAIN CASES, OF AN ELECTRICITY SYSTEM

13. (1)  Municipalities which have established an electricity system in common, under subsection 1 of section 12, may, by agreement, order the partition thereof between themselves.

The resolution by which each municipality concerned exercises the power provided for in the first paragraph must be submitted to the qualified voters for approval.

(2)  If the municipalities agree as to the expediency of dividing the system between them, but do not agree on the terms of such division, they may refer the matter to the Board, which shall decide in last resort any question relating thereto.

R. S. 1964, c. 186, s. 14; 1965 (1st sess.), c. 57, s. 3; 1996, c. 2, s. 951; 1996, c. 77, s. 60; 2005, c. 6, s. 234.

14. (1)  The Commission municipale du Québec is authorized to manage any electricity system established in common by municipalities under subsection 1 of section 12, in the cases provided for by subsection 2 of this section, to the exclusion of the municipal councils concerned.

For the purposes of this subsection, the Commission municipale du Québec shall possess the powers of the municipal council which it replaces and the provisions of sections 48 to 60 of the Act respecting the Commission municipale (chapter C‐35) shall apply, with the necessary modifications, to such management, but only as regards the electricity system.

(2)  The management of an electricity system established under subsection 1 of section 12 is entrusted to the Commission municipale du Québec.

(a)  upon application by the council of each of the municipalities interested, by resolution adopted by a majority of at least two-thirds of the councillors or, as the case may be, of the aldermen, of each of them; or

(b)  subject to subsection 3, upon application by the council of a municipality interested, by resolution adopted by a majority of at least two-thirds of its councillors, or, as the case may be, of the aldermen, or upon application, submitted to the Minister of Municipal Affairs, Regions and Land Occupancy, by at least 50 qualified voters entitled to have their names entered on the referendum list of the municipalities having in common established an electricity system.

(3)  The provisions of the Act respecting elections and referendums in municipalities (chapter E‐2.2) which concern the manner in which the rights of a legal person may be exercised, and the manner in which qualified voters entitled to have their names entered on the referendum list and the applications demanding that a referendum poll be held are counted apply, adapted as required, to any application contemplated in paragraph b of subsection 2. For the purposes of determining which qualified voters entitled to have their names entered on the referendum list are qualified to submit such an application, the reference date within the meaning of the said Act is the date of receipt of the application.

The Commission municipale du Québec, before taking charge of the management of the electricity system, shall submit the application to the qualified voters of each municipality interested, for approval. The consultation shall be effected by means of a referendum poll in accordance with the above-mentioned Act. The Commission shall take charge of the management of the electricity system only if the results of the poll show, in each municipality, a number of affirmative votes greater than the number of negative votes.

R. S. 1964, c. 186, s. 15; 1977, c. 5, s. 14; 1987, c. 57, s. 805; 1996, c. 2, s. 951; 1999, c. 43, s. 13; 2003, c. 19, s. 250; 2005, c. 28, s. 196; 2009, c. 26, s. 109.

DIVISION VI ALIENATION OR ABANDONMENT OF AN ELECTRICITY SYSTEM

15. The resolution by which a municipality alienates or stops operating an electricity system belonging to it must be submitted to the qualified voters for approval.

R. S. 1964, c. 186, s. 16; 1965 (1st sess.), c. 57, s. 4; 1996, c. 2, s. 951; 1996, c. 77, s. 61; 2005, c. 6, s. 235.

DIVISION VII MUNICIPAL ELECTRIFICATION

1996, c. 2, s. 949.

16. If a municipality cannot come to an agreement with Hydro-Québec to obtain electricity, the municipality may apply to the Board and the Board may order Hydro-Québec to supply electricity to the municipality on the terms and conditions determined by Board.

A municipality may, with the authorization of and subject to the conditions determined by the Government, purchase electricity from any other public service.

R. S. 1964, c. 186, s. 17; 1996, c. 2, s. 951; 1996, c. 61, s. 134.

17. (Repealed).

R. S. 1964, c. 186, s. 18; 1984, c. 47, s. 213; 1996, c. 2, s. 950; 1996, c. 61, s. 135.

DIVISION VII.1 PRIVATE ELECTRIC POWER SYSTEMS

1988, c. 23, s. 96.

17.1. In no case may the prices and rates fixed by any person or partnership operating an undertaking engaged in the production, sale or distribution of electricity involve, for any class of persons to which the undertaking supplies electricity, a cost higher than what would be charged to an equivalent class of consumers of electricity under the tariff set out in Schedule I to the Hydro-Québec Act (chapter H-5) for electricity supplied by Hydro-Québec.

The first paragraph does not apply where Hydro-Québec purchases electricity from an undertaking described in that paragraph.

The first paragraph applies to a person or partnership producing electric power for its own consumption.

1988, c. 23, s. 96; 1996, c. 61, s. 136; 2006, c. 46, s. 60; 2019, c. 27, s. 18.

DIVISION VIII

Repealed, 1979, c. 72, s. 383.

1979, c. 72, s. 383.

18. (Repealed).

R. S. 1964, c. 186, s. 19; 1977, c. 5, s. 14; 1979, c. 72, s. 383.

19. (Repealed).

R. S. 1964, c. 186, s. 20; 1979, c. 72, s. 383.

20. (Repealed).

R. S. 1964, c. 186, s. 21; 1979, c. 72, s. 383.

21. (Repealed).

R. S. 1964, c. 186, s. 22; 1979, c. 72, s. 383.

DIVISION IX

This Division ceased to have effect on 17 April 1987.

22. (This section ceased to have effect on 17 April 1987).

1982, c. 21, s. 1; U. K., 1982, c. 11, Sch. B, Part I, s. 33.

REPEAL SCHEDULE

In accordance with section 9 of the Act respecting the consolidation of the statutes and regulations (chapter R-3), chapter M-38 of the Revised Statutes, in force on 1 March 1989, is repealed effective from the coming into force of chapter S-41 of the Revised Statutes.