The provincial government has decided to cancel a plan to hike electricity rates for Alcoa.

At the Alcoa plant in Baie Comeau, Premier Pauline Marois announced on Tuesday that Alcoa would keep its special deal of paying less than 3 cents per KWH for electricity until 2030 for its plants in Becancour and Deschambault, and until 2036 for Baie Comeau.

In October 2013, the company threatened to close its three plants in Quebec if Hydro Quebec went ahead with its scheduled plan to increase the company's rate to 4.7 cents per KWH in 2015.

However, the company will pay more if the market price for aluminum rises.

Under the deal Alcoa will invest $250 million over the next five years to upgrade its three smelters.

This is considered a major attempt to woo voters by the Parti Quebecois, which has an MNA in Baie Comeau but hopes to win seats in the two other areas where Alcoa smelters are located.

Alcoa employs 3,300 at its three smelters.

The latest speculation is that Marois will call an election as early as next week.