Manitoba Hydro is asking the provincial regulator, the Public Utilities Board, to approve electricity rate increases of 3.5 per cent in each of the next two years. It also warns that it will likely need rate hikes above the rate of inflation in the future if it is to meet government debt-reduction targets. "These proposed increases will help ensure Manitoba Hydro has the financial resources available to handle the risks created by our $24-billion debt load and factors that are out of our control like fluctuating interest rates, export market prices and water levels," Jay Grewal, president and CEO of the Crown-owned utility, said in a press release Wednesday.
Manitoba Hydro electricity rates going up 3.6% starting in new year
Manitoba Hydro's wish for a five per cent electricity rate increase did not come true this year. The Public Utilities Board, which oversees utilities, approved a 3.6 per cent interim rate increase beginning Jan. 1, 2022. The increase expires Nov. 15, 2022, barring a subsequent successful rate hike application by Manitoba Hydro. "This increase recognizes the financial consequences of the drought experienced in Manitoba in 2021 and the board's objective to avoid rate shock by smoothing the rate increases to customers required to address the costs of major capital projects entering service," the board wrote in a press release.