Cost of new reactors low-balled, say critics

By Globe and Mail


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The McGuinty government is low-balling the cost of modernizing Ontario's fleet of nuclear reactors, critics say, calling into question its own projection that consumers' hydro bills will double by 2030.

The government pegs the cost of building two new reactors and refurbishing 10 existing units at $33-billion in its long-term energy plan. But opposition members and industry observers said the figure is not realistic. For starters, they said, the government shelved a deal to build two reactors last year, citing the exorbitant price tag of $26-billion. As well, they said, the refit of two mothballed reactors at the Bruce Power nuclear station on Lake Huron is now likely to be $4.8-billion, $2-billion more than the original estimate.

"There's no credibility behind the cost estimate," said Keith Stewart, an energy analyst and anti-nuclear campaigner at Greenpeace Canada.

Progressive Conservative energy critic John Yakabuski is a fan of nuclear energy. But he said consumers should be bracing for their hydro bills to rise more than the government's estimate of 3.5 per cent a year over the next two decades.

The average bill, based on residences that consume 800 kilowatt hours a month, will climb to $228 by 2030 including inflation, from $114 today, the government said. By comparison, the average bill was $53 in 1990.

"They have consistently underestimated the cost of their energy plans and consistently oversold the ability of their plans to supply the energy we need," Mr. Yakabuski said.

The plan spells out the government's blueprint for meeting the province's electricity needs for the next 20 years, while keeping its promise to phase out coal-fired power by 2014. Despite Premier Dalton McGuinty's push for supremacy in the burgeoning North American market for solar, wind and other renewable power projects, nuclear energy will remain the backbone of Ontario's electricity system.

Half of the province's electricity will continue to come from nuclear power. Green energy will account for 13 per cent by 2030, up from 3 per cent today.

"That's not a modernized system," said Dr. Stewart. "That's really the old system with a little green trim around the edges."

The government is also embarking on an ambitious nuclear expansion program amid enormous uncertainty over the future of Atomic Energy of Canada Ltd. The province had planned to buy the two new reactors from AECL, but the federal government's efforts to sell the company could scuttle that plan.

Mr. McGuinty urged Prime Minister Stephen Harper in a letter last summer to suspend the privatization effort and instead focus on concluding a deal to sell AECL's Candu reactors to Ontario.

"The federal government did not help by any means by putting AECL up for sale in the middle of our procurement process," Energy Minister Brad Duguid said at a recent news conference. The province has 16 nuclear reactors that generate a total of 11,400 megawatts of power. The two new reactors the province plans to purchase would be capable of producing 2,000 megawatts of electricity, enough to power 1.6 million homes a year. The government is determined to get a fair price from AECL, Mr. Duguid said.

The $33-billion price tag is the government's best estimate, he said, but government officials won't know the actual cost until the projects go ahead.

"We put a lot of rigour [into] the numbers before you."

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Rooftop Solar Grids

Rooftop solar grids transform urban infrastructure with distributed generation, photovoltaic panels, smart grid integration and energy storage, cutting greenhouse gas emissions, lowering utility costs, enabling net metering and community solar for low-carbon energy systems.

 

Key Points

Rooftop solar grids are PV systems on buildings that generate power, cut emissions, and enable smart grid integration.

✅ Lowers utility bills via net metering and demand offset

✅ Reduces greenhouse gases and urban air pollution

✅ Enables resiliency with storage, smart inverters, and microgrids

 

As urban areas expand and the climate crisis intensifies, cities are seeking innovative ways to integrate renewable energy sources into their infrastructure. One such solution gaining traction is the installation of rooftop solar grids. A recent CBC News article highlights the significant impact of these solar systems on urban environments, showcasing their benefits and the challenges they present.

Harnessing Unused Space for Sustainable Energy

Rooftop solar panels are revolutionizing how cities approach energy consumption and environmental sustainability. By utilizing the often-overlooked space on rooftops, these systems provide a practical solution for generating renewable energy in densely populated areas. The CBC article emphasizes that this approach not only makes efficient use of available space but also contributes to reducing a city's reliance on non-renewable energy sources.

The ability to generate clean energy directly from buildings helps decrease greenhouse gas emissions and, as scientists work to improve solar and wind power, promotes a shift towards a more sustainable energy model. Solar panels absorb sunlight and convert it into electricity, reducing the need for fossil fuels and lowering overall carbon footprints. This transition is crucial as cities grapple with rising temperatures and air pollution.

Economic and Environmental Advantages

The economic benefits of rooftop solar grids are considerable. For homeowners and businesses, installing solar panels can lead to substantial savings on electricity bills. The initial investment in solar technology is often balanced by long-term energy savings and financial incentives, such as tax credits or rebates, and evidence that solar is cheaper than grid electricity in Chinese cities further illustrates the trend toward affordability. According to the CBC report, these financial benefits make solar energy a compelling option for many urban residents and enterprises.

Environmentally, the advantages are equally compelling. Solar energy is a renewable and clean resource, and increasing the number of rooftop solar installations can play a pivotal role in meeting local and national renewable energy targets, as illustrated when New York met its solar goals early in a recent milestone. The reduction in greenhouse gas emissions from fossil fuel energy sources directly contributes to mitigating climate change and improving air quality.

Challenges in Widespread Adoption

Despite the clear benefits, the adoption of rooftop solar grids is not without its challenges. One of the primary hurdles is the upfront cost of installation. While prices for solar panels have decreased over time, the initial financial outlay remains a barrier for some property owners, and regions like Alberta have faced solar expansion challenges that highlight these constraints. Additionally, the effectiveness of solar panels can vary based on factors such as geographic location, roof orientation, and local weather patterns.

The CBC article also highlights the importance of supportive infrastructure and policies for the success of rooftop solar grids. Cities need to invest in modernizing their energy grids to accommodate the influx of solar-generated electricity, and, in the U.S., record clean energy purchases by Southeast cities have signaled growing institutional demand. Furthermore, policies and regulations must support solar adoption, including issues related to net metering, which allows solar panel owners to sell excess energy back to the grid.

Innovative Solutions and Future Prospects

The future of rooftop solar grids looks promising, thanks to ongoing technological advancements. Innovations in photovoltaic cells and energy storage solutions are expected to enhance the efficiency and affordability of solar systems. The development of smart grid technology and advanced energy management systems, including peer-to-peer energy sharing, will also play a critical role in integrating solar power into urban infrastructures.

The CBC report also mentions the rise of community solar projects as a significant development. These projects allow multiple households or businesses to share a single solar installation, making solar energy more accessible to those who may not have suitable rooftops for solar panels. This model expands the reach of solar technology and fosters greater community engagement in renewable energy initiatives.

Conclusion

Rooftop solar grids are emerging as a key element in the transition to sustainable urban energy systems. By leveraging unused rooftop space, cities can harness clean, renewable energy, reduce greenhouse gas emissions, and, as developers learn that more energy sources make better projects, achieve long-term economic savings. While there are challenges to overcome, such as initial costs and regulatory hurdles, the benefits of rooftop solar grids make them a crucial component of the future energy landscape. As technology advances and policies evolve, rooftop solar grids will play an increasingly vital role in shaping greener, more resilient urban environments.

 

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California proposes income-based fixed electricity charges

Income Graduated Fixed Charge aligns CPUC billing with utility fixed costs, lowers usage rates, supports electrification, and shifts California investor-owned utilities' electric bills by income, with CARE and Climate Credit offsets for low-income households.

 

Key Points

A CPUC proposal: an income-based monthly fixed fee with lower usage rates to align costs and aid low-income customers.

✅ Income-tiered fixed fees: $0-$42; CARE: $14-$22, by utility territory

✅ Usage rates drop 16%-22% to support electrification and cost-reflective billing

✅ Lowest-income save ~$10-$20; some higher earners pay ~$10+ more monthly

 

The Public Advocates Office (PAO) for the California Public Utilities Commission (CPUC) has proposed adding a monthly income-based fixed charge on electric utility bills based on income level.  

The rate change is designed to lower bills for the lowest-income residents while aligning billing more directly with utility costs. 

PAO’s recommendation for the Income Graduated Fixed Charge places fees between $22 and $42 per month in the three major investor-owned utilities’ territories, including an SDG&E minimum charge debate under way, for customers not enrolled in the California Alternative Rates for Energy (CARE) program. As seen below, CARE customers would be charged between $14 per month and $22 a month, depending on income level and territory.

For households earning $50,000 or less per year, the fixed charge would be $0, but only if the California Climate Credit is applied to offset the fixed cost.

Meanwhile, usage-based electricity rates are lowered in the PAO proposal, part of major changes to electric bills statewide. Average rates would be reduced between 16% to 22% for the three major investor-owned utilities.

The lowest-income bracket of Californians is expected to save roughly $10 to $20 a month under the proposal, while middle-income customers may see costs rise by about $20 a month, even as lawmakers seek to overturn income-based charges in Sacramento.

“We anticipate the vast majority of low-income customers ($50,000 or less per year) will have their monthly bills decrease by $10 or more, and a small proportion of the highest income earners ($100,000+ per year) will see their monthly bills rise by $10 or more,” said the PAO.

The charges are an effort to help suppress ever-increasing electricity generation and transmission rates, which are among the highest in the country, with soaring electricity prices reported across California. Rates are expected to rise sharply as wildfire mitigation efforts are implemented by the utilities found at fault for their origin.

“We are very concerned. However, we do not see the increases stopping at this point,” Linda Serizawa, deputy director for energy, PAO, told pv magazine. “We think the pace and scale of the [rate] increases is growing faster than we would have anticipated for several years now.”

Consumer advocates and regulators face calls for action on surging electricity bills across the state.

The proposed changes are also meant to more directly couple billing with the fixed charges that utilities incur, as California considers revamping electricity rates to clean the grid. For example, activities like power line maintenance, energy efficiency programs, and wildfire prevention are not expected to vary with usage, so these activities would be funded through a fixed charge.

Michael Campbell of the PAO’s customer programs team, and leader of the proposed program, likened paying for grid enhancements and other social programs with utility rate increases to “paying for food stamps by taxing food.” Instead, a fixed charge would cover these costs.

PAO said the move to lower rates for usage should help encourage electrification as California moves to replace heating and cooling, appliances, and gas combustion cars with electrified counterparts. In addition, lower rates mean the cost burden of running these devices is improved.

 

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Minnesota Power energizes Great Northern Transmission Line

Great Northern Transmission Line delivers 250 MW of carbon-free hydropower from Manitoba Hydro, strengthening Midwest grid reliability, enabling wind storage balancing, and advancing Minnesota Power's EnergyForward strategy for cleaner, renewable energy across the region.

 

Key Points

A 500 kV cross-border line delivering 250 MW of carbon-free hydropower, strengthening reliability and enabling renewables.

✅ 500 kV, 224-mile line from Manitoba to Minnesota

✅ Delivers 250 MW hydropower via ALLETE-Minnesota Power

✅ Enables wind storage and grid balancing with Manitoba Hydro

 

Minnesota Power, a utility division of ALLETE Inc. (NYSE:ALE), has energized its Great Northern Transmission Line, bringing online an innovative delivery and storage system for renewable energy that spans two states and one Canadian province, similar to the Maritime Link project in Atlantic Canada.

The 500 kV line is now delivering 250 megawatts of carbon-free hydropower from Manitoba, Canada, to Minnesota Power customers.

Minnesota Power completed the Great Northern Transmission Line (GNTL) in February 2020, ahead of schedule and under budget. The 224-mile line runs from the Canadian border in Roseau County to a substation near Grand Rapids, Minnesota. It consists of 800 tower structures which were fabricated in the United States and used 10,000 tons of North American steel. About 2,200 miles of wire were required to install the line's conductors. The GNTL also is contributing significant property tax revenue to local communities along the route.

"This is such an incredible achievement for Minnesota Power, ALLETE, and our region, and is the culmination of a decade-long vision brought to life by our talented and dedicated employees," said ALLETE President and CEO Bethany Owen. "The GNTL will help Minnesota Power to provide our customers with 50 percent renewable energy less than a year from now. As part of our EnergyForward strategy, it also strengthens the grid across the Midwest and in Canada, enhancing reliability for all of our customers."

With the GNTL energized and connected to Manitoba Hydro's recently completed Manitoba-Minnesota Transmission Project at the border, the companies now have a unique "wind storage" mechanism that quickly balances energy supply and demand in Minnesota and Manitoba, and enables a larger role for renewables in the North American energy grid.

The GNTL and its delivery of carbon-free hydropower are important components of Minnesota Power's EnergyForward strategy to transition away from coal and add renewable power sources while maintaining reliable and affordable service for customers, echoing interties like the Maritime Link that facilitate regional power flows. It also is part of a broader ALLETE strategy to advance and invest in critical regional transmission and distribution infrastructure, such as the TransWest Express transmission project, to ensure grid integrity and enable cleaner energy to reduce carbon emissions.

"The seed for this renewable energy initiative was planted in 2008 when Minnesota Power proposed purchasing 250 megawatts of hydropower from Manitoba Hydro. Beyond the transmission line, it also included a creative asset swap to move wind power from North Dakota to Minnesota, innovative power purchase agreements, and a remarkable advocacy process to find an acceptable route for the GNTL," said ALLETE Executive Chairman Al Hodnik. "It marries wind and water in a unique connection that will help transform the energy landscape of North America and reduce carbon emissions related to the existential threat of climate change."

Minnesota Power and Manitoba Hydro, a provincial Crown Corporation, coordinated on the project from the beginning, navigating National Energy Board reviews along the way. It is based on the companies' shared values of integrity, environmental stewardship and community engagement.

"The completion of Minnesota Power's Great Northern Transmission Line and our Manitoba-Minnesota Transmission Project is a testament to the creativity, perseverance, cooperation and skills of hundreds of people over so many years on both sides of the border," said Jay Grewal, president and CEO of Manitoba Hydro. "Perhaps even more importantly, it is a testament to the wonderful, longstanding relationship between our two companies and two countries. It shows just how much we can accomplish when we all work together toward a common goal."

Minnesota Power engaged federal, state and local agencies; the sovereign Red Lake Nation and other tribes, reflecting First Nations involvement in major transmission planning; and landowners along the proposed routes beginning in 2012. Through 75 voluntary meetings and other outreach forums, a preferred route was selected with strong support from stakeholders that was approved by the Minnesota Public Utilities Commission in April 2016.

A four-year state and federal regulatory process culminated in late 2016 when the federal Department of Energy approved a Presidential Permit for the GNTL, similar to the New England Clean Power Link process, needed because of the international border crossing. Construction of the line began in early 2017.

"A robust stakeholder process is essential to the success of any project, but especially when building a project of this scope," Owen said. "We appreciated the early engagement and support from stakeholders, local communities and tribes, agencies and regulators through the many approval milestones to the completion of the GNTL."

 

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Covid-19: Secrets of lockdown lifestyle laid bare in electricity data

Lockdown Electricity Demand Trends reveal later mornings, weaker afternoons, and delayed peaks as WFH, streaming, and video conferencing reshape energy demand curves, grid forecasting, and residential electricity usage across Europe, New York, Tokyo, and Singapore.

 

Key Points

Shifts in power use during lockdowns: later ramps, weaker afternoons, and higher, delayed evening peaks.

✅ Morning ramp starts later; midday demand dips

✅ Evening peak shifts 1-2 hours; higher late-night usage

✅ WFH and streaming raise residential load; industrial demand falls

 

Life in lockdown means getting up late, staying up till midnight and slacking off in the afternoons.

That’s what power market data in Europe show in the places where restrictions on activity have led to a widespread shift in daily routines of hundreds of millions of people.

It’s a similar story wherever lockdowns bite. In New York City electricity use has fallen as much as 18% from normal times at 8am. Tokyo and three nearby prefectures had a 5% drop in power use during weekdays after Japan declared a state of emergency on April 7, according to Tesla Asia Pacific, an energy forecaster.

Italy’s experience shows the trend most clearly since the curbs started there on March 5, before any other European country. Data from the grid operator Terna SpA gives a taste of what other places are also now starting to report, with global daily demand dips observed in many markets as well.


1. People are sleeping later

With no commute to the office people can sleep longer. Normally, electricity demand began to pick up between 6 a.m. and 8 a.m. Now in Germany, it’s clear coffee machines don’t go on until between 8 a.m. and 9 a.m., said Simon Rathjen, founder of the trading company MFT Energy A/S.

Germany, France and Italy -- which between them make up almost two thirds of the euro-zone economy -- all have furlough measures that allow workers to receive a salary while temporarily suspended from their jobs. The U.K. also has a support package. Many of these workers will be getting up later.

"Now I have quite a relaxed start to the morning,” said David Freeman, an analyst in financial services from London. "I don’t get up until about half an hour before I need to start work.”

2. Less productive afternoons

There is a deeper dip in electricity use in the afternoons. Previously, power use rose between 2pm and 5pm. Now it dips as people head out for a walk or some air, according to UK demand data from National Grid Plc

It’s "as though we are living through a month of Sundays”, said Iain Staffell, senior lecturer in sustainable energy at Imperial College London.

3. Evenings in

From 6pm electricity use begins to rise steeply as people finish work and start chores. Restrictions like work and home schooling that prevent much daytime TV watching lifts in the early evening. This following chart for Germany shows the evening peak for power use coming during later hours.

The evening is when electricity use is highest, with most people confined to their homes. Netflix Inc reported a record 15.8 million paid subscribers – almost double the figure forecast by Wall Street analysts. Video-streaming services like Netflix and YouTube have found a captive audience. The new Disney+ service surpassed 50 million subscribers in just five months, a faster pace than predicted.

Internet traffic is skyrocketing, with a surge in bandwidth-intensive applications like streaming services and Zoom. This may mean that monthly broadband consumption of as much as 600 gigabytes, about 35% higher than before, according to Bloomberg Intelligence.

In Singapore, electricity use has dropped off significantly since the country’s "circuit-breaker” efforts to keep people at home began April 7. Electricity use has fallen and stayed low during the day. But late at night is a different story, as power demand fell sharply immediately after the lockdown began, it has steadily crept back in the past two weeks, perhaps a sign that Tiger King and The Last Dance have been finding late-night fans in the city state.

In Ottawa, COVID-19 closures made it seem as if the city had fallen off the electricity grid, according to local reports.

4. Staying up late

We’re going to bed later too. Demand doesn’t start to drop off until 10pm to 12am, at least an hour later than before.

"My children are definitely going to bed later,” said Liz Stevens, a teaching assistant from London. "Our whole routine is out the window.”

It’s challenging for those that need to predict behaviour – power grids and electricity traders. Forecasting is based on historical data, and there isn’t anything to go into the models gauging use now.

The closest we can get is looking at big events like football World Championships when people are all sitting down at the same time, according to Rathjen at MFT.

"Forecasting demand right now is very tricky,” said Chris Kimmett, director of power grids at Reactive Technologies Ltd. "A global pandemic is uncharted territory."

What normal looks like when the crisis passes is also an open question. Different countries are set to unravel their measures in their own ways, and global power demand has already surged above pre-pandemic levels in some analyses, with Germany and Austria loosening restrictions first and Italy remaining under tight control. Some changes may be permanent, with both workers and employers becoming more comfortable with working from home.

5. Different sectors consume more

In China, which is further along recovering from the pandemic than Europe or the US, the sharp contraction in overall power output masks a shift in daily routines.

Eating habits have changed. Restaurants are expanding delivery and even offering grocery services as the preference for dining at home persists. Household electricity consumption in China probably increased from activities such as cooking and heating, according to IHS Markit, which said that residential demand rose by 2.4% in the first two months as people stayed in.

The increase in technology use also drove China’s power demand from the telecom and web-service sectors to rise by 27%, the consultancy said.

Overall, China power demand in the first quarter of the year fell 6.5% from the same period in 2019 to 1.57 trillion kilowatt-hours, China’s National Energy Administration said last week. Industry uses about 70% of the country’s electricity, while the commercial sector and households account for 14% each. – Bloomberg

 

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California Faces Power Outages and Landslides Amid Severe Storm

California Storm Outages and Landslides strain utilities, trigger flooding, road closures, and debris flows, causing widespread power cuts and infrastructure damage as emergency response teams race to restore service, clear slides, and support evacuations.

 

Key Points

California Storm Outages and Landslides are storm-driven power cuts and slope failures disrupting roads and utilities.

✅ Tens of thousands face prolonged power outages across regions

✅ Landslides block highways, damage property, hinder access

✅ Crews restore grids, clear debris, support shelters and evacuees

 

California is grappling with a dual crisis of power outages and landslides following a severe storm that has swept across the state. The latest reports indicate widespread disruptions affecting thousands of residents and significant infrastructure damage. This storm is not only a test of California's emergency response capabilities but also a stark reminder of the increasing vulnerability of the state to extreme weather events, and of the U.S. electric grid in the face of climate stressors.

Storm’s Impact on California

The recent storm, which hit California with unprecedented intensity, has unleashed torrential rain, strong winds, and widespread flooding. These severe weather conditions have overwhelmed the state’s infrastructure, leading to significant power outages that are affecting numerous communities. According to local utilities, tens of thousands of homes and businesses are currently without electricity. The outages have been exacerbated by the combination of heavy rain and gusty winds, which have downed power lines and damaged electrical equipment.

In addition to the power disruptions, the storm has triggered a series of landslides across various regions. The combination of saturated soil and intense rainfall has caused several hillside slopes to give way, leading to road closures and property damage. Emergency services are working around the clock to address the aftermath of these landslides, but access to affected areas remains challenging due to blocked roads and ongoing hazardous conditions.

Emergency Response and Challenges

California’s emergency response teams are on high alert as they coordinate efforts to manage the fallout from the storm. Utility companies are deploying repair crews to restore power as quickly as possible, but the extensive damage to infrastructure means that some areas may be without electricity for several days. The state’s Department of Transportation is also engaged in clearing debris from landslides and repairing damaged roads to ensure that emergency services can reach affected communities.

The response efforts are complicated by the scale of the storm’s impact. With many areas experiencing both power outages and landslides, the logistical challenges are immense. Emergency shelters have been set up to provide temporary refuge for those displaced by the storm, but the capacity is limited, and there are concerns about overcrowding and resource shortages.

Community and Environmental Implications

The storm’s impact on local communities has been profound. Residents are facing not only the immediate challenges of power outages and unsafe road conditions but also longer-term concerns about recovery and rebuilding. Many individuals have been forced to evacuate their homes, and local businesses are struggling to cope with the disruption.

Environmental implications are also significant. The landslides and flooding have caused considerable damage to natural habitats and have raised concerns about water contamination and soil erosion. The impact on the environment could have longer-term consequences for the state’s ecosystems and water supply.

Climate Change and Extreme Weather

This storm underscores a growing concern about the increasing frequency and intensity of extreme weather events linked to climate change. California has been experiencing a rise in severe weather patterns, including intense storms, prolonged droughts, and extreme heat waves that strain the grid. These changes are putting additional strain on the state’s infrastructure and emergency response systems.

Experts have pointed out that while individual storms cannot be directly attributed to climate change, the overall trend towards more extreme weather is consistent with scientific predictions. As such, there is a pressing need for California to invest in infrastructure improvements and resilience measures, and to consider accelerating its carbon-free electricity mandate to better withstand future events.

Looking Ahead

As California deals with the immediate aftermath of this storm, attention will turn to recovery and rebuilding efforts. The state will need to address the damage caused by power outages and landslides while also preparing for future challenges posed by climate change.

In the coming days, the focus will be on restoring power, clearing debris, and providing support to affected communities. Long-term efforts will likely involve reassessing infrastructure vulnerabilities, improving emergency response protocols, and investing in climate resilience measures across the grid.

 

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Manitoba Hydro scales back rate increase next year

Manitoba Hydro 3.5 Percent Rate Increase proposes a smaller electricity rate hike under Public Utilities Board oversight to bolster financial reserves, address debt and Bipole III costs, amid shifting export sales and water flow conditions.

 

Key Points

It is Manitoba Hydro's proposed 3.5% electricity rate hike for 2019-20 to shore up finances under PUB oversight.

✅ PUB review sought without lengthy hearing

✅ Revenue boost forecast at 59 million dollars

✅ Natural gas rates flat; class shifts adjust bills

 

Manitoba Hydro is scaling back its rate hike request for next year, instead of the annual 7.9 per cent hikes the Crown corporation previously said it would need until 2023-24 to address debt. 

Hydro is asking the Public Utilities Board for a 3.5 per cent rate increase next year, which would take effect on April 1.

In last week's application, Hydro said its new board is reviewing the corporation's financial picture. Once that is complete, the utility expects to submit a new multi-year rate plan in late 2019 that addresses the organization's long-term future.

"It's too speculative at this point to discuss any possible future rate increases," spokesperson Bruce Owen said in an email.

The proposed increase next year is similar to other jurisdictions and nearly in line with the Public Utilities Board's decision to allow an average 3.6 per cent jump in electricity rates in 2018-19, which began this summer.

"The requested 3.5 per cent rate increase … generates a modest level of net income under average water flow conditions that will assist in gradually building the revenue base and reduce the risk of the corporation incurring a loss" in 2019-20, the rate application said.

If approved, consumers would face their second rate increase from Hydro in under a year.

Crown Services Minister Colleen Mayer said she's sympathetic to customers bracing for another rate increase amid NL rate hike concerns that far exceeds the rate of inflation.

"I hear that, very clearly," she said. "The NDP left us with an insurmountable problem — we're trying to fix that."

Hydro goes to court over special rate class for First Nations residents in Manitoba

National Energy Board OK's Manitoba-Minnesota Transmission Project

Next year's rate increase is projected to bring in $59 million of revenue, boosting the Crown corporation's financial reserves by $31 million.

Without it, the utility would deal with a net loss, it said.

This time, Hydro officials are asking PUB to forgo a rate hearing, suggesting neither itself nor the board has the resources for a lengthy six- to nine-month process to review an application where not much has changed financially and would generate a "minimum level of net income," Hydro said in a letter to the board.

The short-term rate relief, the letter recommends, should be "awarded in a timely and cost-effective manner, recognizing that the corporation's long-term financial forecasts will be finalized and available for review" in late 2019.

Hydro's net income next year will be lower than projected, the rate application said, due to a reduction in export sales and increases in depreciation and financing costs from Bipole III.

"Even though they had a total implosion of their previous board, on this very issue, they haven't learned lessons and they continue to be cheerleaders for these rapid rate increases," Kinew said, referring to the exodus of every board member but one earlier this year.

Manitoba Hydro's burgeoning debt surpasses $19 billion

On natural gas, Manitoba Hydro is asking PUB for no rate increase for the next two years.

There will, however, be some changes in rates in different customer classes, Owen said, resulting in modest rate reductions for mainly residential customers and increases for customers who use a lot of natural gas.

The corporation also wants to stop collecting fees to support the furnace replacement program. The initiative will continue with existing fees.

 

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