Quebec has named federal government mandarin and business veteran Michael Sabia as chief executive of Hydro-Québec, saying his experience makes him the ideal person to steer the utility’s next chapter of its growth.
After years at the helm of both public companies and high-profile government departments, Mr. Sabia brings a loaded resume with him as he prepares to step into the top job at Hydro-Québec. But rarely has someone’s chops to lead a senior crown corporation been so thoroughly dissected as his in recent days.
Before he joined the finance department in the Trudeau government, Mr. Sabia was the former CEO of the Caisse de dépôt et placement du Québec. That high-profile position also comes with a heavy dose of scrutiny and second-guessing – by business leaders, politicians and the general public alike. And right from the start, Mr. Sabia had his doubters.
Quebec has for years used its vast and affordable hydropower resources to lure business investment and drive growth and Mr. Legault is now linking that effort with his own obsession: Bridging the wealth gap with Ontario. But now, requests for that power are vastly outstripping supply, and companies are being told no.
Cementing future power production is also an issue. The utility predicts an end to its electricity surpluses by 2026 and adding more industrial customers beyond existing ones could require building new hydroelectric or wind projects at a cost three or four times those of existing dams. The utility’s legacy dams produce power for roughly three cents a kilowatt-hour.