Manitobans may soon be paying more for their electricity – and Saskatchewan residents already are.
SaskPower has increased rates by 3.5 per cent as of Mar. 1. The Saskatchewan Rate Review Panel announced the increase in January.
SaskPower estimates that the increase would mean an average increase of $4 per month on a residential bill, with an average increase of $9 per month for farm property.
SaskPower had applied for a 5 per cent increase, but was denied that by the panel. The provincial crown corporation stated the increase was needed to transfer Saskatchewan’s power supply from mostly coal power to more renewable resources. Further increases are likely in the future.
A potential 7.9 per cent rate increase for Manitoba Hydro is still under review by Manitoba’s Public Utilities Board (PUB).
PUB has heard the case for increasing rates since last May, when the board approved a separate 3.36 per cent increase for Hydro customers. A larger 7.9 per cent increase was denied.
In addition to the increase that is currently under review, Manitoba’s largest supplier of electricity has lobbied for additional increases until 2023-24.
Hydro is arguing that the increases are necessary to pay down the crown corporation’s mounting debt, to replace aging infrastructure and to pay expenses for the company’s Keeyask generating station and Bipole III transmission line projects.
Hydro estimates an average residential customer with electric heat will pay an additional $19.16 per month for power if the full increase is approved.
The company’s 10-year financial plan includes using rate increases, exporting hydroelectricity outside Manitoba and cutting staff positions to help get Hydro back in the black.
On average, rates for electricity are higher in Saskatchewan than in neighbouring provinces Alberta or Manitoba, pending the rate increase application in Manitoba
