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Puerto Rico Microgrid Regulations outline renewable energy, CHP, and storage standards, enabling islanded systems, PREPA interconnection, excess energy sales, and IRP alignment to boost resilience, distributed resources, and community power across the recovering grid.

Key Points

Rules defining microgrids, requiring 75 percent renewables or CHP, and setting interconnection and PREPA fee frameworks.

✅ 75 percent renewables or CHP; hybrids allowed

✅ Registration, engineer inspection, and annual generation reports

✅ PREPA interconnection fees; excess energy sales permitted

The Puerto Rico Energy Commission unveiled 29 pages of proposed regulations last week for future microgrid installations on the island.

The regulations, which are now open for 30 days of public comment, synthesized pages of responses received after a November 10 call for recommendations. Commission chair José Román Morales said it’s the most interest the not-yet four-year-old commission has received during a public rulemaking process.

The goal was to sketch a clearer outline for a tricky-to-define concept -- the term "microgrid" can refer to many types of generation islanded from the central grid -- as climate pressures on the U.S. grid mount and more developers eye installations on the recovering island.

“There’s not a standard definition of what a microgrid is, not even on the mainland,” said Román Morales.

According to the commission's regulation, “a microgrid shall consist, at a minimum, of generation assets, loads and distribution infrastructure. Microgrids shall include sufficient generation, storage assets and advanced distribution technologies, including advanced inverters, to serve load under normal operating and usage conditions.”

All microgrids must be renewable (with at least 75 percent of power from clean energy), combined heat and power (CHP) or hybrid CHP-and-renewable systems. The regulation applies to microgrids controlled and owned by individuals, customer cooperatives, nonprofit and for-profit companies, and cities, but not those owned by the Puerto Rico Electric Power Authority (PREPA). Owners must submit a registration application for approval, including a certification of inspection from a licensed electric engineer, and an annual fuel, generation and sales report that details generation and fuel source, as well as any change in the number of customers served.

Microgrids, like the SDG&E microgrid in Ramona in California, can interconnect with the PREPA system, but if a microgrid will use PREPA infrastructure, owners will incur a monthly fee. That amounts to $25 per customer up to a cap of $250 per month for small cooperative microgrids. The cost for larger systems is calculated using a separate, more complex equation. Operators can also sell excess energy back to PREPA.

Big goals for the island's future grid

In total, 53 groups and companies, including Sunnova, AES, the Puerto Rico Solar Energy Industries Association (PR-SEIA), the Advanced Energy Management Alliance (AEMA), and the New York Smart Grid Consortium, submitted their thoughts about microgrids or, in many cases, broader goals for the island’s future energy system. It was a quick turnaround: The Puerto Rico Energy Commission offered a window of just 10 days to submit advice, although the commission continued to accept comments after the deadline.

“PREC wanted the input as fast as possible because of the urgency,” said AES CEO Chris Shelton.

AES’ plan includes a network of “mini-grids” that could range in size from several megawatts to one large enough to service the entire city of San Juan.

“The idea is, you connect those to each other with transmission so they can have a co-optimized portfolio effect and lower the overall cost,” said Shelton. “But they would be largely autonomous in a situation where the tie-lines between them were broken.”

According to estimates provided in AES’ filing, utility-scale solar installations over 50 megawatts on the island could cost between $40 and $50 per megawatt-hour. Those prices make solar located near load centers an economic alternative to the island’s fossil-fuel generating plants. The utility’s analysis showed that a 10,000-megawatt solar system could replace 12,000 gigawatt-hours of fossil generation, with 25 gigawatt-hours of battery storage leveling out load throughout the day. Puerto Rico’s peak load is 3,000 megawatts.

In other filings, PR-SEIA urged a restructuring of FEMA funds so they’re available for microgrid development. GridWise Alliance wrote that plans should consider cybersecurity, and AEMA recommended the commission develop an integrated resource plan (IRP) that includes distributed energy resources, microgrids and non-wires alternatives.

An air of optimism, though 1.5 million are still without power

After the commission completes the microgrid rulemaking, a new IRP is next on the commission’s to-do list. PREPA must file that plan in July, and regulators are working furiously to make sure it incorporates the recent flood of rebuilding recommendations from the energy industry.

Though the commission has the final say when it comes to approval of the plan, PREPA will lead the IRP process. The utility’s newly formed Transformation Advisory Council (TAC), a group of 11 energy experts, will contribute.

With that group, along with New York’s Resiliency Working Group, lessons from California's grid transition, the Energy Commission, the utility itself, and the dozens of other clean energy experts and entrepreneurs who want to offer their two cents, the energy planning process has a lot of moving parts. But according to Julia Hamm, CEO of the Smart Electric Power Alliance and a member of both the Energy Resiliency Working Group and the TAC, those working to establish standards for Puerto Rico’s future are hitting their stride.

“Certainly over the past three months, it has been a bit of a challenge to ensure that everybody has been coordinating efforts. Just over the past couple of weeks, we’ve seen some good progress on that front. We’re starting to see a lot more communication,” she said, adding that an air of optimism has settled on the process. “The key stakeholders all have a very common vision for Puerto Rico when it comes to the power sector.”

Nisha Desai, a PREPA board member who is liaising with the TAC, affirmed that collaborators are on the same page. “Everyone is violently in agreement that the future of Puerto Rico involves renewables, microgrids and distributed generation,” she said.

The TAC will hold its first in-person meeting in mid-January, and has already consulted with the utility on its formal fiscal plan submission, due January 10.

Though many taking part in the process feel the once-harried recovery is beginning to adopt a more organized approach, Desai acknowledges that “there are a lot of people in Puerto Rico who feel forgotten.”

Puerto Rico’s current generation sits at just 72.6 percent, in a nation facing longer, more frequent outages due to extreme weather. The government recently offered its first estimate that about half the island, 1.5 million residents, remains without power.

In late December and into January, 1,500 more crewmembers from 18 utilities in states as far flung as Minnesota, Missouri and Arizona will land on the island to aid further restoration through mutual aid agreements.

“The system is getting up to speed, getting to 100 percent, but there’s still some instability,” said Román Morales. “Right now it’s a matter of time.”

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FPL Hurricane Surcharge explained: restoration costs, Florida PSC review, rate impacts, grid resilience, and transparency after Hurricanes Debby and Helene as FPL funds infrastructure hardening and rapid storm recovery across Florida.

Key Points

A fee by Florida Power & Light to recoup hurricane restoration costs, under Florida PSC review for consumer fairness.

✅ Funds Debby and Helene restoration, materials, and crews

✅ Reviewed by Florida PSC for consumer protection and fairness

✅ Raises questions on grid resilience, transparency, and renewables

In the aftermath of recent hurricanes, Florida Power & Light (FPL) is under scrutiny as it implements a rate surcharge, alongside proposed rate hikes that span multiple years, to help cover the costs of restoration and recovery efforts. The surcharges, attributed to Hurricanes Debby and Helene, have stirred significant debate among consumers and state regulators, highlighting the ongoing challenges of hurricane preparedness and response in the Sunshine State.

Hurricanes are a regular threat in Florida, and FPL, as the state's largest utility provider, plays a critical role in restoring power and services after such events. However, the financial implications of these natural disasters often leave residents questioning the fairness and necessity of additional charges on their monthly bills. The newly proposed surcharge, which is expected to affect millions of customers, has ignited discussions about the adequacy of the company’s infrastructure investments and its responsibility in disaster recovery.

FPL’s decision to implement a surcharge comes as the company faces rising operational costs due to extensive damage caused by the hurricanes. Restoration efforts are not only labor-intensive but also require significant investment in materials and equipment to restore power swiftly and efficiently. With the added pressures of increased demand for electricity during peak hurricane seasons, utilities like FPL must navigate complex financial landscapes, similar to Snohomish PUD's weather-related rate hikes seen in other regions, while ensuring reliable service.

Consumer advocacy groups have raised concerns over the timing and justification for the surcharge. Many argue that frequent rate increases following natural disasters can strain already financially burdened households, echoing pandemic-related shutoff concerns raised during COVID that heightened energy insecurity. Florida residents are already facing inflationary pressures and rising living costs, making additional surcharges particularly difficult for many to absorb. Critics assert that utility companies should prioritize transparency and accountability, especially when it comes to costs incurred during emergencies.

The Florida Public Service Commission (PSC), which regulates utility rates and services, even as California regulators face calls for action amid soaring bills elsewhere, is tasked with reviewing the surcharge proposal. The commission’s role is crucial in determining whether the surcharge is justified and in line with the interests of consumers. As part of this process, stakeholders—including FPL, consumer advocacy groups, and the general public—will have the opportunity to voice their opinions and concerns. This input is essential in ensuring that the commission makes an informed decision that balances the utility’s financial needs with consumer protection.

In recent years, FPL has invested heavily in strengthening its infrastructure to better withstand hurricane impacts. These investments include hardening power lines, enhancing grid resilience, and implementing advanced technologies for quicker recovery, with public outage prevention tips also promoted to enhance preparedness. However, as storms become increasingly severe due to climate change, the question arises: are these measures sufficient? Critics argue that more proactive measures are needed to mitigate the impacts of future storms and reduce the reliance on post-disaster rate increases.

Additionally, the conversation around climate resilience is becoming increasingly prominent in discussions about energy policy in Florida. As extreme weather events grow more common, utilities are under pressure to innovate and adapt their systems. Some experts suggest that FPL and other utilities should explore alternative strategies, such as investing in decentralized energy resources like solar and battery storage, even as Florida declined federal solar incentives that could accelerate adoption, which could provide more reliable service during outages and reduce the overall strain on the grid.

The issue of rate surcharges also highlights a broader conversation about the energy landscape in Florida. With a growing emphasis on renewable energy and sustainability, consumers are becoming more aware of the environmental impacts of their energy choices, and some recall a one-time Gulf Power bill decrease as an example of short-term relief. This shift in consumer awareness may push utilities like FPL to reevaluate their business models and explore more sustainable practices that align with the public’s evolving expectations.

As FPL navigates the complexities of hurricane recovery and financial sustainability, the impending surcharge serves as a reminder of the ongoing challenges faced by utility providers in a climate-volatile world. While the need for recovery funding is undeniable, the manner in which it is implemented and communicated will be crucial in maintaining public trust and ensuring fair treatment of consumers. As discussions unfold in the coming weeks, all eyes will be on the PSC’s decision and FPL’s approach to balancing recovery efforts with consumer affordability.

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French Antitrust Fines for Electrical Cartel expose price fixing by Schneider Electric, Legrand, Rexel, and Sonepar, after a Competition Authority probe into electrical distribution, collusion, and compliance breaches impacting market competition and customers.

Key Points

Penalties on Schneider Electric, Legrand, Rexel, and Sonepar for electrical price fixing, upholding competition law.

✅ Competition Authority fined four major suppliers.

✅ Collusion raised prices across construction and industry.

✅ Firms bolster compliance programs and training.

In a significant crackdown on corporate malfeasance, French authorities have imposed hefty fines on four major electrical equipment companies—Schneider Electric, Legrand, Rexel, and Sonepar—after concluding a price-fixing investigation. The total fines amount to approximately €500 million, underscoring the seriousness with which regulators are addressing anti-competitive practices in the electrical distribution sector, even as France advances a new electricity pricing scheme to address EU concerns.

Background of the Investigation

The probe, initiated by France’s Competition Authority, sought to uncover collusion among these leading firms regarding the pricing of electrical equipment and services between 2005 and 2012. This investigation is part of a broader initiative to promote fair competition within the market, as Europe prepares to revamp its electricity market to bolster transparency, ensuring that consumers and businesses alike benefit from competitive pricing and innovative products.

The inquiry revealed that these companies had engaged in illicit agreements to fix prices and coordinate their market strategies, limiting competition in a sector critical to both the economy and infrastructure. The findings indicated that the collusion not only stifled competition but also led to inflated prices for customers, illustrating why rolling back electricity prices is often more complex than it appears for customers across various sectors, from construction to manufacturing.

The Fines Imposed

Following the conclusion of the investigation, the fines levied against the companies were substantial. Schneider Electric faced the largest penalty, receiving a fine of €220 million, while Legrand was fined €150 million. Rexel and Sonepar were each fined €70 million and €50 million, respectively. These financial penalties serve as a deterrent to other companies that might consider engaging in similar practices, reinforcing the message that anti-competitive behavior will not be tolerated.

The fines are particularly significant given the size and influence of these companies within the electrical equipment market. Their combined revenues amount to billions of euros annually, making the repercussions of their actions far-reaching. As major players in the industry, their pricing strategies have a direct impact on numerous sectors, from residential construction to large-scale industrial projects.

Industry Reactions

The response from the affected companies has varied. Schneider Electric expressed its commitment to compliance and transparency, acknowledging the importance of adhering to competition laws, amid ongoing EU electricity reform debates that influence market expectations.

Legrand also emphasized its commitment to fair competition, noting that it has taken steps to enhance its compliance framework in response to the investigation. Rexel and Sonepar similarly reaffirmed their dedication to ethical business practices and their intention to cooperate with regulators in the future.

Industry experts have pointed out that these fines, while significant, may not be enough to deter large corporations from engaging in similar behavior unless accompanied by a broader cultural shift within the industry. There is a growing call for enhanced oversight and stricter penalties to ensure that companies prioritize ethical conduct over short-term profits.

Implications for the Market

The fines imposed on Schneider, Legrand, Rexel, and Sonepar could have broader implications for the electrical equipment market and beyond. They signal to other companies within the sector that regulatory bodies are vigilant, even as nine EU countries oppose electricity market reforms proposed as fixes for price spikes, and willing to take decisive action against anti-competitive practices. This could foster a more competitive environment, ultimately benefiting consumers through better prices and enhanced product offerings.

Moreover, the case highlights the importance of regulatory bodies in maintaining fair market conditions. As industries evolve, ongoing vigilance from competition authorities will be necessary to prevent similar instances of collusion and ensure that markets remain competitive and innovative, as seen when New York opened a formal review of retail energy markets.

The recent fines imposed on Schneider Electric, Legrand, Rexel, and Sonepar mark a significant moment in France's ongoing battle against corporate price-fixing and anti-competitive practices, occurring as the government and EDF reached a deal on electricity prices to balance market pressures. With total penalties exceeding €500 million, the investigation underscores the commitment of French authorities to uphold market integrity and protect consumer interests.

As the industry reflects on these developments, it remains crucial for companies to prioritize compliance and ethical business practices. The ultimate goal is to create an environment where competition thrives, innovation flourishes, and consumers benefit from fair pricing. This case serves as a reminder that transparency and accountability are vital in maintaining the health of any market, particularly one as essential as the electrical equipment sector.

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Philippines Renewable Energy Mini-Grids address rising electricity demand, rolling blackouts, off-grid electrification, and decentralized power in an archipelago, leveraging solar, wind, and hybrid systems to close the generation capacity gap and expand household access.

Key Points

Decentralized solar, wind, and hybrid systems powering off-grid areas to relieve shortages and expand access.

✅ Targets 2.3M unelectrified homes with reliable clean power

✅ Mitigates rolling blackouts via modular mini-grid deployments

✅ Supports energy access, resilience, and grid decentralization

The reason why IRENA made its study in the Philippines is because of the country’s demand for electricity is on a steady rise while the generating capacity lags behind. To provide households the electricity, the government is constrained to implement rolling blackouts in some regions. By 2030, the demand for electricity is projected to reach 30 million kilowatts as compared to 17 million kilowatts which is its current generating capacity.

One of the country’s biggest conglomerations, San Miguel Corporation is accountable for almost 20% of power output. It has power plants that has a 900,000-kW generation capacity. Another corporation in the energy sector, Aboitiz Power, has augmented its facilities as well to keep up with the demand. As a matter fact, even foreign players such as Tokyo Electric Power and Marubeni, as a result of the gradual privatization of the power industry which started in 2001, have built power plants in the country, a challenge mirrored in other regions where electricity for all demands greater investment, yet the power supply remains short.

And so, the IRENA came up with the study entitled “Accelerating the Deployment of Renewable Energy Mini-Grids for Off-Grid Electrification – A Study on the Philippines” to provide a clearer picture of what the current state of the crisis is and lay out possible solutions. It showed that as of 2016, a record year for renewables worldwide, the Philippines has approximately 2.3 million households without electricity. With only 89.6 percent of household electrification, that leaves about 2.36 million homes either with limited power of four to six hours each day or totally without electricity.

By the end of 2017, the Philippine government will have provided 90% of Philippine households with electricity. It is worth mentioning that in 2014, the National Capital Region together with two other regions had received 90 percent electrification. However, some areas are still unable to access power that’s within or above the national average. IRENA’s study has become a source of valuable information and analysis to the Philippines’ power systems and identified ways on how to surmount the challenges involving power systems decentralization, with renewable energy funding supporting those mini-grids which are either powered in parts or in full by renewable energy resources. This, however, does not discount the fact that providing electricity in every household still is an on-going struggle. Considering that the Philippines is an archipelago, providing enough, dependable, and clean modern energy to the entire country, including the remote and isolated islands is difficult. The onset of renewable energy is a viable and cost-effective option to support the implementation of mini-grids, as shown by Ireland's green electricity targets rising rapidly.

 

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New York Solar Milestone accelerates renewable energy adoption, meeting targets early with 8,000 MW capacity powering 1.1 million homes, boosting green jobs, community solar, battery storage, and grid reliability under the CLCPA clean energy framework.

Key Points

It is New York achieving its solar goal early, powering 1.1M homes and advancing CLCPA renewable targets.

✅ 8,000 MW installed, enough to power about 1.1M homes

✅ CLCPA targets: 70 percent renewables by 2030

✅ Community solar, storage, and green jobs scaling statewide

In a remarkable display of commitment to renewable energy, New York has achieved its solar energy targets a year ahead of schedule, marking a significant milestone in the state's clean energy journey, and aligning with a national trend where renewables reached a record 28% in April nationwide. With the addition of solar power capacity capable of powering over a million homes, New York is not just setting the pace for solar adoption but is also establishing itself as a leader in the fight against climate change.

A Commitment to Renewable Energy

New York’s ambitious clean energy agenda is part of a broader effort to reduce greenhouse gas emissions and transition to sustainable energy sources. The state's goal, established under the Climate Leadership and Community Protection Act (CLCPA), aims for 70% of its electricity to come from renewable sources by 2030. With the recent advancements in solar energy, including contracts for 23 renewable projects totaling 2.3 GW, New York is well on its way to achieving that goal, demonstrating that aggressive policy frameworks can lead to tangible results.

The Numbers Speak for Themselves

As of now, New York has successfully installed more than 8,000 megawatts (MW) of solar energy capacity, supported by large-scale energy projects underway across New York that are expanding the grid. This achievement translates to enough electricity to power approximately 1.1 million homes, showcasing the state's investment in harnessing the sun’s power. The rapid expansion of solar installations reflects both increasing consumer interest and supportive policies that facilitate growth in the renewable energy sector.

Economic Benefits and Job Creation

The surge in solar energy capacity has not only environmental implications but also significant economic benefits. The solar industry in New York has become a substantial job creator, employing tens of thousands of individuals across various sectors. From manufacturing solar panels to installation and maintenance, the job opportunities associated with this growth are diverse and vital for local economies.

Moreover, as solar installations increase, the state benefits from reduced electricity costs over time. By investing in renewable energy, New York is paving the way for a more resilient and sustainable energy future, while simultaneously providing economic opportunities for its residents.

Community Engagement and Accessibility

New York's solar success is also tied to its efforts to engage communities and increase access to renewable energy. Initiatives such as community solar programs allow residents who may not have the means or space to install solar panels on their homes to benefit from solar energy. These programs provide an inclusive approach, ensuring that low-income households and underserved communities have access to clean energy solutions.

The state has also implemented various incentives to encourage solar adoption, including tax credits, rebates, and financing options. These efforts not only promote environmental sustainability but also aim to make solar energy more accessible to all New Yorkers, furthering the commitment to equity in the energy transition.

Innovations and Future Prospects

New York's solar achievements are complemented by ongoing innovations in technology and energy storage solutions. The integration of battery storage systems is becoming increasingly important, reflecting growth in solar and storage in the coming years, and allowing for the capture and storage of solar energy for use during non-sunny periods. This technology enhances grid reliability and supports the state’s goal of transitioning to a fully sustainable energy system.

Looking ahead, New York aims to continue this momentum. The state is exploring additional strategies to increase renewable energy capacity, including plans to investigate sites for offshore wind across its coastline, and other clean energy technologies. By diversifying its renewable energy portfolio, New York is positioning itself to meet and even exceed future energy demands while reducing its carbon footprint.

A Model for Other States

New York’s success story serves as a model for other states aiming to enhance their renewable energy capabilities, with its approval of the biggest offshore wind farm underscoring that leadership. The combination of strong policy frameworks, community engagement, and technological innovation can inspire similar initiatives nationwide. As more states look to address climate change, New York’s proactive approach can provide valuable insights into effective strategies for solar energy deployment.

New York’s achievement of its solar energy goals a year ahead of schedule is a testament to the state's unwavering commitment to sustainability and renewable energy. With the capacity to power over a million homes, this milestone not only signifies progress in clean energy adoption but also highlights the potential for economic growth and community engagement. As New York continues on its path toward a greener future, and stays on the road to 100% renewables by mid-century, it sets a powerful example for others to follow, proving that ambitious renewable energy goals can indeed become a reality.

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Manitoba Hydro rate hikes face public hearings over electricity rates, utility bills, and debt, with impacts on low-income households, Indigenous communities, and Winnipeg services amid credit rating pressure and rising energy costs.

Key Points

Manitoba Hydro seeks 7.9% annual increases to stabilize finances and debt, impacting electricity costs for households.

✅ Proposed hikes: 7.9% yearly through 2023/24

✅ Driven by debt, credit rating declines, rising interest

✅ Disproportionate impact on low-income and Indigenous communities

Hearings began Monday into Manitoba Hydro’s request for consecutive annual rate hikes of 7.9 per cent.  The crown corporation is asking for the steep hikes to commence April 1, 2018.

The increases would continue through 2023/2024, under a multi-year rate plan before dropping to what Hydro calls “sustainable” levels.

Patti Ramage, legal counsel for Hydro, said while she understands no one welcomes the “exceptional” rate increases, the company is dealing with exceptional circumstances.

It’s the largest rate increase Hydro has ever asked for, though a scaled-back increase was discussed later, saying rising debt and declining credit ratings are affecting its financial stability.

President and CEO Kelvin Shepherd said Hydro is borrowing money to fund its interest payments, and acknowledged that isn’t an effective business model.

Hydro’s application states that it will be spending up to 63 per cent of its revenue on paying financial expenses if the current request for rate hikes is not approved.

If it does get the increase it wants, that number could shrink to 45 per cent – which Ramage says is still quite high, but preferable to the alternative.

She cited the need to take immediate action to fix Hydro’s finances instead of simply hoping for the best.

“The worst thing we can do is defer action… that’s why we need to get this right,” Ramage said.

A number of intervenors presented varying responses to Hydro’s push for increased rates, with many focusing on how the hikes would affect Manitobans with lower incomes.

Senwung Luk spoke on behalf of the Assembly of Manitoba Chiefs, and said the proposed rates would hit First Nations reserves particularly hard.

He noted that 44.2 per cent of housing on reserves in the province needs significant improvement, which means electricity use tends to be higher to compensate for the lower quality of infrastructure.

Luk says this problem is compounded by the higher rates of poverty in Indigenous populations, with 76 per cent of children on reserves in Manitoba living below the poverty line.

If the increase goes forward, he said the AMC hopes to see a reduced rate for those living on reserves, despite a recent appeal court ruling on such pricing.

Byron Williams, speaking on behalf of the Consumers Coalition, said the 7.9 per cent increase unreasonably favours the interests of Hydro, and is unjustly biased against virtually everyone else.

In Saskatchewan, the NDP criticized an SaskPower 8 per cent rate hike as unfair to customers, highlighting regional concerns.

Williams said customers using electric space heating would be more heavily targeted by the rate increase, facing an extra $13.14 a month as opposed to the $6.88 that would be tacked onto the bills of those not using electric space heating.

Williams also called Hydro’s financial forecasts unreliable, bringing the 7.9 per cent figure into question.

Lawyer George Orle, speaking for the Manitoba Keewatinowi Okimakanak, said the proposed rate hikes would “make a mockery” of the sacrifices made by First Nations across the province, given that so much of Hydro’s infrastructure is on Indigenous land.

The city of Winnipeg also spoke out against the jump, saying property taxes could rise or services could be cut if the hikes go ahead to compensate for increased, unsustainable electricity costs.

In British Columbia, a BC Hydro 3 per cent increase also moved forward, drawing attention to affordability.

A common theme at the hearing was that Hydro’s request was not backed by facts, and that it was heading towards fear-mongering.

Manitoba Hydro’s CEO begged to differ as he plead his case during the first hearing of a process that is expected to take 10 weeks.

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