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It will be the first time in five years that North America's largest electricity producer has increased domestic rates and the move is expected to be denounced by taxpayer groups.
The overall increase for Quebec taxpayers will be C$354 million ($225 million) over three years, based on inflation rates of 1.5 percent in 2004, 1.6 percent in 2005 and 2.0 percent in 2006.
The move was announced at a Montreal news conference during the presentation of Hydro-Quebec's 2002-2006 strategic plan.
Hydro-Quebec said the financial return on its assets was less than 10 percent, far behind most other North American power producers.
The provincially owned utility also said it was considering building more generating plants fueled by natural gas.
($1=$1.58 Canadian)
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