Manitoba Hydro is again looking to increase its rates.
The province’s electricity authority has applied to the Manitoba Public Utilities Board (PUB) for another increase in hydro rates. Deliberations for the proposed hike are now underway, including a public hearing on the proposal in Winnipeg last week.
If the PUB approves the proposal, Manitoba Hydro will increase rates by 7.9 per cent in April 2018.
The PUB denied a similar 7.9 increase last summer, approving a smaller 3.36 per cent interim rate increase.
In an attempt to stave off building debt and expenses, Manitoba Hydro is requesting a series of 7.9 per cent rate increases between 2017 and 2023-24. If all the requested increases pass, a hydro bill of $2,000 before last summer’s interim rate hike would increase to over $3,200.
If the increase is instituted and approved by PUB, it would apply to all Manitoba Hydro customers, including individuals and families, business owners and recreation facilities. The increase in costs may lead to budgetary concerns for community groups, who will also have to deal with the increase in fees.
The proposed rate increase is part of Manitoba Hydro’s ongoing plan to offset the corporations’ growing debt load. The company’s two major projects – the Keeyask Generating Station on the Nelson River and the Bipole III transmission line – have both gone over their predicted budgets and are anticipated to cost between $13 billion and $14 billion in combined fees.
Last year, Manitoba Hydro cut 900 positions from its workforce, almost 15 per cent of the company’s total work force. A little over 800 of the positions were voluntary buyouts.
On the other side of the border, SaskPower is also looking for a rate increase. The proposed hike would increase existing power bills by five per cent. Discussions were held on the increase in August, but no resolution has yet been reached.
