No. Hydro-related revenues are not simply excluded. Remitted profits from hydro Crown corporations are included in the natural-resource base, and natural-resource revenues are only partially included in the formula.
Finance Canada includes natural-resource fiscal capacity. Parliamentary evidence states that remitted profits from hydroelectric Crown corporations are treated analogously to oil and gas royalties. Natural-resource revenues are only partially included.
No. Hydro-related revenues are not simply excluded. Remitted profits from hydro Crown corporations are included in the natural-resource base, and natural-resource revenues are only partially included in the formula.
How Quebec prices electricity can affect measured fiscal capacity, and economists debate whether the formula creates incentives around resource pricing.
The claim that Hydro-Québec revenue is ignored while Alberta oil royalties are fully counted is inaccurate.
There is a legitimate policy debate about resource pricing and incentives, but the categorical hydro-excluded/oil-counted framing is not accurate.
Canada; Alberta; Quebec
NAR-20260906-005
Fact check: Does equalization ignore Quebec hydro revenue while counting Alberta oil revenue? What the evidence says about Alberta, federalism and equalization.
Does equalization ignore Quebec hydro revenue while counting Alberta oil revenue? Alberta equalization federalism Quebec representation Senate House Ottawa
Short answer
No. Hydro-related revenues are not simply excluded. Remitted profits from hydro Crown corporations are included in the natural-resource base, and natural-resource revenues are only partially included in the formula.
What's true
How Quebec prices electricity can affect measured fiscal capacity, and economists debate whether the formula creates incentives around resource pricing.
What's wrong or missing
The claim that Hydro-Québec revenue is ignored while Alberta oil royalties are fully counted is inaccurate.
What the evidence shows
Finance Canada includes natural-resource fiscal capacity. Parliamentary evidence states that remitted profits from hydroelectric Crown corporations are treated analogously to oil and gas royalties. Natural-resource revenues are only partially included.
Why it matters to Canadians
There is a legitimate policy debate about resource pricing and incentives, but the categorical hydro-excluded/oil-counted framing is not accurate.
Key evidence or evidence note
Primary baselines use Finance Canada, Elections Canada, Government of Canada constitutional material, Library of Parliament research, and parliamentary records where applicable. Circulation evidence is kept separate from factual baseline evidence.
Review status
Confidence: High · Last reviewed: September 6, 2026 · Narrative ID: NAR-20260906-005