Workers beat Hydro One again

By Financial Post


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If nothing else there was the stark contrast: On the same day the government of Ontario released the list of employees who earn more than $100,000 a year came news that the Ontario Superior Court of Justice had delivered a massive victory for the little guy, specifically 73 former middle managers with Hydro One, the province's power distribution-and-transmission utility.

The group were terminated in late 2002 as part of a cost-reduction program.

While the group, many of whom were nearing retirement, received a severance, no proper adjustment was made to their pensions. (They were all members of the Hydro One pension plan.) In essence, the workers wanted to start receiving their much-reduced pensions earlier than would otherwise be the case. Having access to the pension would alleviate some of the financial hardship they were facing.

But they were denied, and that's what upset them. So they launched a process and five years-plus later, they have just been told the Superior Court agrees with their point of view. That decision, plus a decision in favour of the workers made by the Financial Services Tribunal of Ontario last year, means the current scorecard runs this way: Workers 2, Hydro One 0.

And the three Superior Court Justices - Frances Kiteley, Peter Cumming and Douglas Shaw - didn't hold back in their 12-page verdict. They cited the FST's ruling, which said "the merger was an excuse, rather than a reason to further thin out staff, particularly staff with some seniority."

And for good measure they added: "We conclude... (that) the number of terminated employees can be significant as an absolute number.... We do not agree with Hydro One's assertion that the words 'significant number' must be determined by comparing the number of affected pension plan members against the total active membership." The three justices also awarded costs against Hydro One.

It's not known how Hydro One, currently 0 for 2 on this matter, intends to deal with the latest defeat. "Hydro One is reviewing the Superior Court decision and we will be considering options," said a spokesperson.

While the utility mulls a response, what's known is that it has spent a pile on legal bills over the past five years-plus on an argument that has been soundly rejected by the Financial Services Tribunal and by the Superior Court of Justice. Of course, the legal bills end up being paid by the province's electricity ratepayers.

For the 73 laid-off workers, the hope presumably is that Hydro One recognizes the two decisions and acts accordingly. Sack Goldblatt Mitchell, the law firm that acted for the 73 former workers, could not be reached.

Here is the time line:

Late 2002: 73 middle-level managers are laid off.

2003: The group requested the Financial Services Commission of Ontario, whose mandate is to protect workers' rights under the Pensions Benefits Act, order a partial windup of the Hydro One Pension Plan with respect to the management compensation plan.

2005: The FSC0 declined that request. The group then appealed to the Financial Services Tribunal, which in 2007 ruled in their favour. The FST noted the failure of Hydro One to provide those terminated with the rights and privileges afforded other groups downsized during the same period.

2007: Hydro One appealed the decision to the Superior Court.

2008: Hydro One loses its appeal.

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Demand for electricity in Yukon hits record high

Yukon Electricity Demand Record underscores peak load growth as winter cold snaps drive heating, lighting, and EV charging, blending hydro, LNG, and diesel with renewable energy and planned grid-scale battery storage in Whitehorse.

 

Key Points

It is the territory's new peak electricity load, reflecting winter demand, electric heating, EVs, and mixed generation.

✅ New peak: 104.42 MW, surpassing 2020 record of 103.84 MW

✅ Winter peaks met with hydro, LNG, diesel, and renewables mix

✅ Customers urged to shift use off peak hours and use timers

 

A new record for electricity demand has been set in Yukon. The territory recorded a peak of 104.42 megawatts, according to a news release from Yukon Energy.

The new record is about a half a megawatt higher than the previous record of 103.84 megawatts recorded on Jan. 14, 2020.

While in general, over 90 per cent of the electricity generated in Yukon comes from renewable resources each year, with initiatives such as new wind turbines expanding capacity, during periods of high electricity use each winter, Yukon Energy has to use its hydro, liquefied natural gas and diesel resources to generate the electricity, the release says.

But when it comes to setting records, Andrew Hall, CEO of Yukon Energy, says it's not that unusual.

"Typically, during the winter, when the weather is cold, demand for electricity in the Yukon reaches its maximum. And that's because folks use more electricity for heating their homes, for cooking meals, there's more lighting demand, because the days are shorter," he said.

"It usually happens either in December or sometimes in January, when we get a cold snap."

He said generally over the years, electricity demand has grown.

"We get new home construction, construction of new apartment buildings. And typically, those new homes are all heated by electricity, maybe not all of them but the majority," Hall said.

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There are also other reasons, ones that are "in the name of climate change," Hall added.

That includes people trying to limit fossil fuel heating by swapping to electric heating. And, he said some Yukoners are switching to electric vehicles as incentives expand across the North.

"Over time, those two new demands, in the name of climate change, will also contribute to growing demand for electricity," he said.

While Yukon did reach this new all time high, Hall said the territory still hadn't hit the maximum capacity for the week, which was 118 megawatts, and discussions about a potential connection to the B.C. grid are part of long-term planning.


Yukon Energy's hydroelectric dam in Whitehorse. Yukon Energy's CEO, Andrew Hall, said demand of 104 megawatts wasn't unexpected, nor was it an emergency. The corporation has the ability to generate 118 megawatts. (Paul Tukker/CBC)
Tips to curve demand
"When we plan our system, we actually plan for a scenario, guided by the view that sustainability is key to the grid's future, where we actually lose our largest hydro generating facility," Hall said.

"We had plenty of generation available so it wasn't an emergency situation, and, even as other provinces face electricity shortages, it was more just an observation that hey, our peaks are growing."

He also said it was an opportunity to reach out to customers on ways to curve their demand for electricity around peak times, drawing on energy efficiency insights from other provinces, which is typically between 7 a.m. and 9 a.m., and between 5 p.m. and 7 p.m., Monday to Friday.

For example, he said, people should consider running major appliances, like dishwashers, during non-peak hours, such as in the afternoon rather than in the morning or evening.

During winter peaks, people can also use a block heater timer on vehicles and turn down the thermostat by one or two degrees.

'We plan for each winter'
Hall said Yukon Energy is working to increase its peak output, including working on a large grid scale battery to be installed in Whitehorse, similar to Ontario's energy storage push now underway. 

When it comes to any added load from people working from home due to COVID-19, Hall said they haven't noticed any identifiable increase there.

"Presumably, if someone's working from home, you know, their computer is at home, and they're not using the computer at the office," he said.

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He said there shouldn't be any concern for maxing out the capacity of electricity demand as Yukon moves into the colder winter months, since those days are forecast for.

"This number of 104 megawatts wasn't unexpected," he said, adding how much electricity is needed depends on the weather too.

"We plan for each winter."

 

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Rising Solar and Wind Curtailments in California

California Renewable Energy Curtailment highlights grid congestion, midday solar peaks, limited battery storage, and market constraints, with WEIM participation and demand response programs proposed to balance supply-demand and reduce wasted solar and wind generation.

 

Key Points

It is the deliberate reduction of solar and wind output when grid limits or low demand prevent full integration.

✅ Grid congestion restricts transmission capacity

✅ Midday solar peaks exceed demand, causing surplus

✅ Storage, WEIM, and demand response mitigate curtailment

 

California has long been a leader in renewable energy adoption, achieving a near-100% renewable milestone in recent years, particularly in solar and wind power. However, as the state continues to expand its renewable energy capacity, it faces a growing challenge: the curtailment of excess solar and wind energy. Curtailment refers to the deliberate reduction of power output from renewable sources when the supply exceeds demand or when the grid cannot accommodate the additional electricity.

Increasing Curtailment Trends

Recent data from the U.S. Energy Information Administration (EIA) highlights a concerning upward trend in curtailments in California. In 2024, the state curtailed a total of 3,102 gigawatt-hours (GWh) of electricity generated from solar and wind sources, surpassing the 2023 total of 2,660 GWh. This represents a 32.4% increase from the previous year. Specifically, 2,892 GWh were from solar, and 210 GWh were from wind, marking increases of 31.2% and 51.1%, respectively, compared to the first nine months of 2023.

Causes of Increased Curtailment

Several factors contribute to the rising levels of curtailment:

  1. Grid Congestion: California's transmission infrastructure has struggled to keep pace with the rapid growth of renewable energy sources. This congestion limits the ability to transport electricity from generation sites to demand centers, leading to curtailment.

  2. Midday Solar Peaks: Amid California's solar boom, solar energy production typically peaks during the midday when electricity demand is lower. This mismatch between supply and demand results in excess energy that cannot be utilized, necessitating curtailment.

  3. Limited Energy Storage: While battery storage technologies are advancing, California's current storage capacity is insufficient to absorb and store excess renewable energy for later use. This limitation exacerbates curtailment issues.

  4. Regulatory and Market Constraints: Existing market structures and regulatory frameworks may not fully accommodate the rapid influx of renewable energy, leading to inefficiencies and increased curtailment.

Economic and Environmental Implications

Curtailment has significant economic and environmental consequences. For renewable energy producers, curtailed energy represents lost revenue and undermines the economic viability of new projects. Environmentally, curtailment means that clean, renewable energy is wasted, and the grid may rely more heavily on fossil fuels to meet demand, counteracting the benefits of renewable energy adoption.

Mitigation Strategies

To address the rising curtailment levels, California is exploring several strategies aligned with broader decarbonization goals across the U.S.:

  • Grid Modernization: Investing in and upgrading transmission infrastructure to alleviate congestion and improve the integration of renewable energy sources.

  • Energy Storage Expansion: Increasing the deployment of battery storage systems to store excess energy during peak production times and release it during periods of high demand.

  • Market Reforms: Participating in the Western Energy Imbalance Market (WEIM), a real-time energy market that allows for the balancing of supply and demand across a broader region, helping to reduce curtailment.

  • Demand Response Programs: Implementing programs that encourage consumers to adjust their energy usage patterns, such as shifting electricity use to times when renewable energy is abundant.

Looking Ahead

As California continues to expand its renewable energy capacity, addressing curtailment will be crucial to ensuring the effectiveness and sustainability of its energy transition. By investing in grid infrastructure, energy storage, and market reforms, the state can reduce curtailment levels and make better use of its renewable energy resources, while managing challenges like wildfire smoke impacts on solar output. These efforts will not only enhance the economic viability of renewable energy projects but also contribute to California's 100% clean energy targets by maximizing the use of clean energy and reducing reliance on fossil fuels.

While California's renewable energy sector faces challenges related to curtailment, proactive measures and strategic investments can mitigate these issues, as scientists continue to improve solar and wind power through innovation, paving the way for a more sustainable and efficient energy future.

 

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Wind Denmark - Danish electricity generation sets a new green record

Denmark 2019 electricity CO2 intensity shows record-low emissions as renewable energy surges, wind power dominates, offshore wind expands, and coal phase-out accelerates Denmark's energy transition and grid decarbonization, driven by higher CO2 prices and flexibility.

 

Key Points

It is 135 g CO2/kWh, a record low enabled by wind power growth, offshore wind, and a sharp coal decline.

✅ Average emissions fell to 135 g CO2/kWh, the lowest on record

✅ Wind and solar supplied 49.9% of national electricity use

✅ Coal consumption dropped 46% as CO2 allowance prices rose

 

Danish electricity producers set a new green record in 2019, when an average produced kilowatt-hour emitted 135 gr CO2 / kWh.

It is the lowest CO2 emission ever measured in Denmark and about one-seventh of what the electricity producers emitted in 1990.

Never has a kilowatt-hour produced emitted as little CO2 as it did in 2019. And that's according to Energinet's recently published annual Environmental Report on Danish electricity generation and cogeneration, two primary causes.

One reason is that more green power has been produced because the Horns Rev 3 offshore wind farm, which can produce electricity for 425,000 households, was commissioned in 2019. The other is that Danish coal consumption fell by 46 percent from 2018 to 2019, as coal phase-out plans gathered pace across the sector. the dramatic decline in coal consumption is partly due a significant increase in the price of CO2 quotas, and thus also the price of CO2 emissions.

'Historically, 135 gr CO2 / kWh is a really, really low figure, showing the impressive green travel that the Danish electricity system has been on. In 1990, a kilowatt-hour produced emitted over 1000 grams of CO2, ie about seven times as much as today, 'says Hanne Storm Edlefsen, area manager in Energinet Power Systems Responsibility.

Wind energy is the dominant form of electricity generation in Denmark, a pattern the UK wind beat coal in 2016 when shifting away from fossil fuels.

17.1 TWh. Danish wind turbines and solar cells generated so much electricity in 2019, corresponding to 49.9 per cent. of Danish electricity consumption, reflecting broader EU wind and solar growth trends as well. An increase of 15 per cent. The wind turbines alone produced 16 TWh, which is not only a new green record, but also puts a thick line that wind energy is by far the most dominant form of electricity generation in Denmark.

'Thanks to our large wind resources, turbines are by far the largest supplier of renewable energy in Denmark, and this will be for many years to come. The large price drop in new wind energy in recent years - for both onshore and offshore winds - will ensure that wind energy will drive a large part of the growth in renewable energy in the coming years, as new wind generation records are set in markets like the UK, 'says Soren Klinge, electricity market manager at Wind Denmark.

Conversely, total electricity generation from fossil and bio-based fuels decreased by 26 PJ (petajoule ed.), Corresponding to 34 per cent. from 2018 to 2019, mirroring renewables overtaking coal in Germany. Nevertheless, net electricity generation was just under 30 TWh both years.

'It is worth noting that while fossil fuels are being phased out, Denmark maintains its annual net production of electricity. The green, so to speak, replaces the black. It once again underpins that green conversion, high security of supply and an affordable electricity price can go hand in hand, 'says Hanne Storm Edlefsen.

Danish power system is ready for a green future

Including trade in electricity with neighboring countries, 1 kWh in a Danish outlet generates 145 gr CO2 / kWh.

'There has been a very significant development in the Danish electricity system in recent years, where the electricity system can now be operated solely on the renewable energy. It is a remarkable development, also from an international perspective where low-carbon progress stalled in the UK in 2019, that one would not have thought possible for just a few years ago, 'he says.

More than expected have phased out coal

The electricity from the Danish sockets will be greener , predicts Energinet's environmental report , which expects CO2 intensity in the coming years. This is explained by an expectation of increased electrification of energy consumption, together with a continued expansion with wind and solar.

'Wind energy is the cornerstone of the green transition. With the commissioning of the Kriegers Flak offshore wind farm and several major onshore wind turbine projects within the next few years, we can well expect that only the wind's share of electricity consumption will exceed 50 per cent hopefully as early as 2021,' concludes Soren Klinge.

 

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From smart meters to big batteries, co-ops emerge as clean grid laboratories

Minnesota Electric Cooperatives are driving grid innovation with smart meters, time-of-use pricing, demand response, and energy storage, including iron-air batteries, to manage peak loads, integrate wind and solar, and cut costs for rural members.

 

Key Points

Member-owned utilities piloting load management, meters, and storage to integrate wind and solar, cutting peak demand.

✅ Time-of-use pricing pilots lower bills and shift peak load.

✅ Iron-air battery tests add multi-day, low-cost energy storage.

✅ Smart meters enable demand response across rural co-ops.

 

Minnesota electric cooperatives have quietly emerged as laboratories for clean grid innovation, outpacing investor-owned utilities on smart meter installations, time-based pricing pilots, and experimental battery storage solutions.

“Co-ops have innovation in their DNA,” said David Ranallo, a spokesperson for Great River Energy, a generation and distribution cooperative that supplies power to 28 member utilities — making it one of the state’s largest co-op players.

Minnesota farmers helped pioneer the electric co-op model more than a century ago, similar to modern community-generated green electricity initiatives, pooling resources to build power lines, transformers and other equipment to deliver power to rural parts of the state. Today, 44 member-owned electric co-ops serve about 1.7 million rural and suburban customers and supply almost a quarter of the state’s electricity.

Co-op utilities have by many measures lagged on clean energy. Many still rely on electricity from coal-fired power plants. They’ve used political clout with rural lawmakers to oppose new pollution regulations and climate legislation, and some have tried to levy steep fees on customers who install solar panels.

Where they are emerging as innovators is with new models and technology for managing electric grid loads — from load-shifting water heaters to a giant experimental battery made of iron. The programs are saving customers money by delaying the need for expensive new infrastructure, and also showing ways to unlock more value from cheap but variable wind and solar power.

Unlike investor-owned utilities, “we have no incentive to invest in new generation,” said Darrick Moe, executive director of the Minnesota Rural Electric Association. Curbing peak energy demand has a direct financial benefit for members.

Minnesota electric cooperatives have launched dozens of programs, such as the South Metro solar project, in recent years aimed at reducing energy use and peak loads, in particular. They include:

Cost calculations are the primary driver for electric cooperatives’ recent experimentation, and a lighter regulatory structure and evolving electricity market reforms have allowed them to act more quickly than for-profit utilities.

“Co-ops and [municipal utilities] can act a lot more nimbly compared to investor-owned utilities … which have to go through years of proceedings and discussions about cost-recovery,” said Gabe Chan, a University of Minnesota associate professor who has researched electric co-ops extensively. Often, approval from a local board is all that’s required to launch a venture.

Great River Energy’s programs, which are rebranded and sold through member co-ops, yielded more than 101 million kilowatt-hours of savings last year — enough to power 9,500 homes for a year.

Beyond lowering costs for participants and customers at large, the energy-saving and behavior-changing programs sometimes end up being cited as case studies by larger utilities considering similar offerings. Advocates supporting a proposal by the city of Minneapolis and CenterPoint Energy to allow residents to pay for energy efficiency improvements on their utility bills through distributed energy rebates used several examples from cooperatives.

Despite the pace of innovation on load management, electric cooperatives have been relatively slow to transition from coal-fired power. More than half of Great River Energy’s electricity came from coal last year, and Dairyland Power, another major power wholesaler for Minnesota co-ops, generated 70% of its energy from coal. Meanwhile, Xcel Energy, the state’s largest investor-owned utility, has already reduced coal to about 20% of its energy mix.

The transition to cleaner power for some co-ops has been slowed by long-term contracts with power suppliers that have locked them into dirty power. Others have also been stalled by management or boards that have been resistant to change. John Farrell, director of the Institute for Local Self-Reliance’s Energy Democracy program, said generalizing co-ops is difficult. 

“We’ve seen some co-ops that have got 75-year contracts for coal, that are invested in coal mines and using their newsletter to deny climate change,” he said. “Then you see a lot of them doing really amazing things like creating energy storage systems … and load balancing [programs], because they are unique and locally managed and can have that freedom to experiment without having to go through a regulatory process.”

Great River Energy, for its part, says it intends to reach 54% renewable generation by 2025, while some communities, like Frisco, Colorado, are targeting 100% clean electricity by specific dates. Its members recently voted to sell North Dakota’s largest coal plant, but the arrangement involves members continuing to buy power from the new owners for another decade.

The cooperative’s path to clean power could become clearer if its experimental iron-air battery project is successful. The project, the first of its kind in the country, is expected to be completed by 2023.

 

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Investing in a new energy economy for Montana

Montana New Energy Economy integrates grid modernization, renewable energy, storage, and demand response to cut costs, create jobs, enable electric transportation, and reduce emissions through utility-scale efficiency, real-time markets, and distributed resources.

 

Key Points

Plan to modernize Montana's grid with renewables, storage and efficiency to lower costs, cut emissions and add jobs.

✅ Grid modernization enables real-time markets and demand response

✅ Utility-scale renewables paired with storage deliver firm power

✅ Efficiency and DERs cut peaks, costs, and pollution

 

Over the next decade, Montana ratepayers will likely invest over a billion dollars into what is now being called the new energy economy.

Not since Edison electrified a New York City neighborhood in 1882 have we had such an opportunity to rethink the way we commercially produce and consume electric energy.

Looking ahead, the modernization of Edison’s grid will lower the consumer costs, creating many thousands of permanent, well-paying jobs. It will prepare the grid for significant new loads like America going electric in transportation, and in doing so it will reduce a major source of air pollution known to directly threaten the core health of Montana and the planet.

Energy innovation makes our choices almost unrecognizable from the 1980s, when Montana last built a large, central-station power plant. Our future power plants will be smaller and more modular, efficient and less polluting — with some technologies approaching zero operating emissions.

The 21st Century grid will optimize how the supply and demand of electricity is managed across larger interconnected service areas. Utilities will interact more directly with their consumers, with utility trends guiding a new focus on providing a portfolio of energy services versus simply spinning an electric meter. Investments in utility-scale energy efficiency — LED streetlights, internet-connected thermostats, and tightening of commercial building envelopes among many — will allow consumers to directly save on their monthly bills, to improve their quality of life, and to help utilities reduce expensive and excessive peaks in demand.

The New Energy Economy will be built not of one single technology, but of many — distributed over a modernized grid across the West that approaches a real-time energy market, as provinces pursue market overhauls to adapt — connecting consumers, increasing competition, reducing cost and improving reliability.

Boldly leading the charge is a new and proven class of commercial generation powered by wind and solar energy, the latter of which employs advanced solid-state electronics, free fuel and no emissions or moving parts. Montana is blessed with wind and solar energy resources, so this is a Made-in-Montana energy choice. Note that these plants are typically paired with utility-scale energy storage investments — also an essential building block of the 21st century grid — to deliver firm, on-demand electric service.

Once considered new age and trendy, these production technologies are today competent and shovel-ready. Their adoption will build domestic energy independence. And, they are aggressively cost-competitive. For example, this year the company ISO New England — operator of a six-state grid covering all of New England — released an all-source bid for new production capacity. Unexpectedly, 100% of the winning bids were large solar electric power and storage projects, as coal and nuclear disruptions continue to shape markets. For the first time, no applications for fossil-fueled generation cleared auction.

By avoiding the burning of traditional fuels, the new energy technologies promise to offset and eventually eliminate the current 1,500 million metric tons of damaging greenhouse gases — one-quarter of the nation’s total — that are annually injected into the atmosphere by our nation’s current electric generation plants. The first step to solving the toughest and most expensive environmental issues of our day — be they costly wildfires or the regional drought that threatens Montana agriculture and outdoor recreation — is a thoughtful state energy policy, built around the new energy economy, that avoids pitfalls like the Wyoming clean energy bill now proposed.

Important potential investments not currently ready for prime time are also on the horizon, including small and highly efficient nuclear innovation in power plants — called small modular reactors (SMR) — designed to produce around-the-clock electric power with zero toxic emissions.

The nation’s first demonstration SMR plant is scheduled to be built sometime late this decade. Fingers are crossed for a good outcome. But until then, experts agree that big questions on the future commercial viability of nuclear remain unanswered: What will be SMR’s cost of electricity? Will it compete? Where will we source the refined fuel (most uranium is imported), and what will be the plan for its safe, permanent disposal?

So, what is Montana’s path forward? The short answer is: Hopefully, all of the above.

Key to Montana’s future investment success will be a respectful state planning process that learns from Texas grid improvements to bolster reliability.

Montanans deserve a smart and civil and bipartisan conversation to shape our new energy economy. There will be no need, nor place, for parties that barnstorm the state about "radical agendas" and partisan name calling – that just poisons the conversation, eliminates creative exchange and pulls us off task.

The task is to identify and vet good choices. It’s about permanently lowering energy costs to consumers. It’s about being business smart and business friendly. It’s about honoring the transition needs of our legacy energy communities. And, it’s about stewarding our world-class environment in earnest. That’s the job ahead.

 

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Cheaper electricity rate for customers on First Nations not allowed, Manitoba appeal court rules

Manitoba Hydro Court Ruling affirms the Public Utilities Board exceeded its jurisdiction by ordering a First Nations rate class, overturning an electricity rates appeal tied to geography, poverty, and regulatory authority in Manitoba.

 

Key Points

A decision holding the PUB lacked authority to create a First Nations rate class, restoring uniform electricity pricing.

✅ Court says PUB exceeded jurisdiction creating on-reserve rate

✅ Equalized electricity pricing reaffirmed across Manitoba

✅ Geography, not poverty, found decisive in unlawful rate class

 

Manitoba Hydro was wrongly forced to create a new rate class for electricity customers living on First Nations, the Manitoba Court of Appeal has ruled. 

The court decided the Public Utilities Board "exceeded its jurisdiction" by mandating Indigenous customers on First Nations could have a different electricity rate from other Manitobans. 

The board made the order in 2018, which exempted those customers from the general rate increase that year of 3.6 per cent.

"The directive constituted the creation and implementation of general social policy, an area outside of the PUB's jurisdiction and encroaching into areas that are better suited to the federal and provincial government," says the decision, which was released Tuesday.

Hydro's appeal of the PUB's decision went to court earlier this year.

At the time, the Crown corporation acknowledged many Indigenous people on First Nations live in poverty, but it argued the Public Utilities Board was overstepping its authority in trying to address the issue by creating a new rate class.

It also argued it was against provincial law to charge different rates in different areas of the province.

The PUB, however, insisted that legislation gives it the right to decide which factors are relevant when considering electricity prices, such as social issues. 

Special Manitoba Hydro rate class needed to offset challenges of living on First Nations, appeal court hears
Manitoba Hydro can appeal order to create special First Nation rate
The board had heard evidence that some customers were making "unacceptable" sacrifices to keep the lights on each month.

Decision 'heavy-handed': AMC
The Assembly of Manitoba Chiefs, an intervener in the appeal, had backed the utility board's position. It said on-reserve customers are disproportionately vulnerable to rate hikes over time.

Grand Chief Arlen Dumas said Wednesday he was surprised by the court's ruling. 

He argued Indigenous people are unduly excluded in the setting of electricity rates in Manitoba.

"I will be speaking with my federal and provincial counterparts on how we deal with this issue, because I think it's the wrong [decision]. It's heavy-handed and we need to address it."

The appeal court judges said there is past precedent for setting equal electricity rates, regardless of where customers live. Legislation to that effect was made in the early 2000s and a few years ago, the PUB recognized that geographical limitations should not be imposed on a class of customers.

Since the board's new order didn't extend the same savings to First Nations members who don't live on reserve but face similar financial circumstances, it is clear the deciding factor was geography, rather than poverty or treaty status, the judges said.

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"In my view, the PUB erred in law when it created an on-reserve class based solely on a geographic region of the province in which customers are located," the decision read.

While Manitoba Hydro objected to the PUB's order in 2018, it still devoted money to create the new customer class.

Spokesperson Bruce Owen said the utility is still studying the impact of the court's decision, but it appreciates the ruling.  

"We all recognize that many people on First Nations have challenges, but our argument was solely on whether or not the PUB had the authority to create a special rate class based on where people live."

Owen added that Hydro recognizes electricity rates can be a hardship on individuals facing poverty. He said those considerations are part of the discussions the corporation has with the utilities board.

 

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