A YEAR OF MAJOR ACHIEVEMENTS

Hydro-Québec ended 2022 with an enviable track record in several regards.

First, in terms of our financial performance, net income reached an all-time high of $4.56 billion thanks to robust exports. As a result, we will be able to pay a dividend of $3.42 billion—the highest ever—to our sole shareholder, the Québec government.

On the commercial front, we signed the largest export agreement in our history, which will allow us to supply New York City with clean, renewable energy over a 25-year period. Québec had aspired to a deal such as this for decades, and it will generate more than C$30 billion in revenue over the term of the agreement.

Also noteworthy is the acquisition of 13 hydroelectric generating stations in New England, which will extend our strategic presence in our primary export market.

These major advances in the United States stir the imagination. But of course, our main focus remains here in Québec, alongside our customers and the communities that we have the privilege of serving. How can we accompany our fellow citizens in the transition to a low-carbon economy? And how can we do so at the lowest possible cost?

In this regard, 18 months of hard work and consultations came to fruition with the publication of our Strategic Plan 2022–2026, which charts the course of our actions for the coming years. This is not the CEO’s plan, but that of our entire organization. It was nourished by the ideas and experience of dozens of stakeholders from a broad representation of Québec society. Based on extensive studies and data, this plan was developed with equal parts humility and ambition, lucidity and passion. It was launched in conjunction with a new organizational structure we call One Hydro, which is designed to facilitate cooperation between our teams for the benefit of society as a whole, in keeping with the wish expressed by numerous employees.

In order to accurately assess the risks we face in connection with global warming and take appropriate action to mitigate their impact on our activities, we also produced our first Climate Change Adaptation Plan—a colossal undertaking grounded in scientific, social and environmental considerations. This plan will be updated as science evolves and new data become available in the coming years and decades.

Last but not least, we established a constructive dialogue with Indigenous communities. These ongoing discussions, which constitute a learning process for us, pave the way for new opportunities, as evidenced by the agreements we have signed with several communities over the past months. Much remains to be done, but we’re on the right path.

These achievements and so many others, both big and small, speak to the outstanding work of our employees—to their experience, their rigor, their innovative spirit and their unflagging devotion. I wish to extend my sincere thanks to them all.

A real privilege

In January 2023, I informed our Board of Directors and the Québec government of my decision to step down as President and Chief Executive Officer in April.

It has been a real privilege to lead Hydro-Québec. I’m extremely grateful to have had the chance to work alongside talented men and women toward the advancement of our government corporation. I would like to thank the Board for its support, its critical thinking and its enlightened guidance. On behalf of the entire management team, I’d also like to recognize the great contribution of Jacynthe Côté, whose mandate will come to an end in May. As the first woman to head Hydro-Québec’s Board of Directors, Ms. Côté has given us the benefit of her strategic thinking and vast experience of the business world, and has helped us all become better managers.

I’m confident that the Hydro-Québec family, which is committed to working for the common good, will marshal every means at its disposal to help Québec build a sustainable future.

I remain, and will always be, a true Hydro-Quebecer at heart.

Sophie Brochu President and Chief Executive Officer