Quebec Energy and Natural Resources Minister Jonatan Julien tabled the bill on Wednesday.
The estimate is that the public utility company has overcharged customers by $1.5 billion.
“Unless otherwise provided, the prices of those rates will be adjusted for the four years following the year in which they are set,” the bill states.
Quebec Premier François Legault severely criticized the Liberal government for not reimbursing Quebecers while they were in power.
WATCH: Opposition parties cry foul over CAQ’s handling of overcharges
Last March, he came under fire in the National Assembly, and his government was accused of hypocrisy for not addressing the issue.
“I understand people are frustrated and they want money back so I’ve asked Hydro-Québec to make an effort,” said Legault on Tuesday.
Renaud Brossard, Quebec director for the Canadian Taxpayers Federation, applauded the province’s move.
In May, the federation delivered a petition, which garnered 75,000 signatures, asking Legault to return the money to customers.
“This is incredible news for Quebec consumers, who have been asking for this for a long time,” said Brossard.
WATCH: Quebecers want Hydro-Québec’s extra profits back
Under the bill, Quebecers would see a rate reduction on their electricity bills beginning in 2020, he added.
“I know we would all love to get a cheque from the government saying: ‘Here’s the money back,’” he said.
“It’s not going to be the case, but people will see it on their hydro bills.”
Brossard notes Hydro-Québec rates will then be frozen and subjected only to inflation, which will result in lower fees for customers.
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— with files from Global’s Kalina Laframboise.