Quebec’s government has chosen former pension fund head Michael Sabia as the next chief executive officer of Hydro-Quebec, according to people familiar with the matter.
Sabia has been tapped to succeed Sophie Brochu, who left as head of the massive electrical utility in April. The appointment is expected to be made Wednesday after formal approval from Quebec’s cabinet, the people said, speaking on condition they not be named because the matter is still private.
Sabia, 69, is Canada’s deputy minister of finance, serving as the top bureaucrat to Finance Minister Chrystia Freeland. Earlier this year, he helped craft the Canadian government’s C$491 billion ($364 billion) budget for 2023-24 fiscal year, laden with incentives for low-carbon technology, including clean electricity.
Hydro-Quebec is an important producer and exporter of hydroelectric power, pumping C$6 billion ($4.4 billion) into provincial government coffers last year. But it has major challenges ahead. After spending years working to convince US states to buy its abundant clean energy, the government-owned firm faces the prospect of future power shortfalls as the province lures more manufacturers. One of the projects Hydro-Quebec has committed to is the Champlain Hudson Power Express, Blackstone Inc.’s $6-billion transmission line to feed New York City.
Sabia was CEO of the Caisse de Depot et Placement du Quebec, Canada’s second-largest public pension manager, from 2009 to 2020, leading the institution into an investment of more than C$7 billion in a light rail system in Montreal, the Reseau Express Metropolitain. Prior to his time at the Caisse, he was CEO of BCE Inc., the country’s largest telecommunications company.
A spokesperson for Hydro-Quebec declined to comment.
Read More: Big Power Shortfall Looms After Quebec Wooed US With Cheap Hydro
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