Consumers Coalition wants Manitoba Hydro's proposed rate increase rejected


Manitoba Hydro applying for 5 per cent interim rate increase

CSA Z463 Electrical Maintenance -

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 6 hours Instructor-led
  • Group Training Available
Regular Price:
$249
Coupon Price:
$199
Reserve Your Seat Today
WINNIPEG —

Manitoba Hydro Interim Rate Increase faces PUB scrutiny as consumers coalition challenges a 5% electricity rate hike, citing drought planning, retained earnings, affordability, transparency, and impacts on fixed incomes and northern communities.

 

Inside the Issue

A proposed 5% electricity rate hike under PUB review, opposed by consumers citing drought planning and affordability.

  • Coalition backs 2% hike; 5% seen as undue burden

  • PUB review sought; interim process lacks transparency

  • Retained earnings, efficiencies cited to offset drought

The Consumers Coalition is urging the Public Utilities Board (PUB) to reject Manitoba Hydro’s current interim rate increase application, amid ongoing debates about Hydro governance and policy.

Hydro is requesting a five per cent jump in electricity rates starting on January 1, claiming drought conditions warrant the increase, but the coalition disagrees, saying a two per cent increase would be sufficient.

The coalition, which includes Harvest Manitoba, the Consumers’ Association of Canada-Manitoba, and the Aboriginal Council of Winnipeg, said a 5 percent rate increase would put an unnecessary strain on consumer budgets, especially for those on fixed incomes or living up north.

"We feel that, in many ways, Manitobans have already paid for this drought," said Gloria Desorcy, executive director of the Consumers’ Association of Canada - Manitoba.

The coalition argues that hydroelectric companies already plan for droughts and that hydro should use past earnings to mitigate any losses.

The group claims drought conditions would have added about 0.8 percent to Hydro’s bottom line. They said remaining revenues from a two per cent increase could then be used to offset the increased costs of major projects like the Keeyask generating station and service its growing debt obligations.

The group also said Hydro is financially secure and is projecting a positive net income of $112 million next year without rate increases, even as utility profits can swing with market conditions, assuming the drought doesn’t continue.

They argue Hydro can use retained earnings as a tool to mitigate losses, rather than relying on deferral accounting that shifts costs, and find further efficiencies within the corporation.

"So we said two per cent, which is much more palatable for consumers, especially at a time when so many consumers are struggling with so many higher bills,” said Desorcy.

According to the coalition’s calculations, that works out to a $2-4 increase per month. Debates such as ending off-peak pricing in Ontario show how design affects bills, depending on whether electricity is used for heating, and it could be higher.

The coalition said its proposed two per cent rate increase should be applied to all Manitoba Hydro customers and have a set expiration date of January 1, 2023.

Another issue, according to the coalition, is that the interim rate application process lacks meaningful transparency and accountability, whereas recent OEB decisions in Ontario have outlined more robust public processes.

Desorcy said the next step is up to the PUB, though board upheaval at Hydro One in Ontario shows how governance shifts can influence outcomes.

The board is expected to decide on the proposed increase in the next couple of weeks.

 

Related News

Related News

Federal Government announces funding for Manitoba-Saskatchewan power line

Birtle Transmission Line connects Manitoba Hydro to SaskPower, enabling 215 MW of clean hydroelectricity, improving…
View more

B.C. residents and businesses get break on electricity bills for three months

BC Hydro COVID-19 Bill Relief offers pandemic support with bill credits, rate cuts, and deferred…
View more

Pandemic causes drop in electricity demand across the province: Manitoba Hydro

Manitoba Electricity Demand Drop reflects COVID-19 effects, lowering peak demand about 6% as businesses and…
View more

Electricity rates are about to change across Ontario

Ontario Electricity Rate Changes lower OEB Regulated Price Plan costs, adjust Time-of-Use winter hours and…
View more

Amazon launches new clean energy projects in US, UK

Amazon Renewable Energy Projects advance net zero goals with a Scotland wind farm PPA and…
View more

Some in Tennessee could be without power for weeks after strong storms hit

Middle Tennessee Power Outages disrupt 100,000+ customers as severe thunderstorms, straight-line winds, downed trees, and…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.