Manitoba Hydro electricity rates going up 3.6% starting in new year
Utility asked for five per cent increase but regulator scaled it back
Manitoba Hydro's wish for a five per cent electricity rate increase did not come true this year.
The Public Utilities Board, which oversees utilities, approved a 3.6 per cent interim rate increase beginning Jan. 1, 2022. The increase expires Nov. 15, 2022, barring a subsequent successful rate hike application by Manitoba Hydro.
"This increase recognizes the financial consequences of the drought experienced in Manitoba in 2021 and the board's objective to avoid rate shock by smoothing the rate increases to customers required to address the costs of major capital projects entering service," the board wrote in a press release.
Manitoba Hydro applied for the rate increase in November to offset losses due to the drought which reduced water flows and the utility's ability to generate surplus energy to sell in markets outside Manitoba, according to Manitoba Hydro president and CEO Jay Grewal in a news release issued in November.
This interim rate increase will be reviewed as part of Manitoba Hydro's general rate application process in 2022.
There will be no increase to the rates for certain customer classes in the diesel zone (a group of four northern communities that rely on diesel-generated electricity supplied by Manitoba Hydro, according to the PUB) or to Surplus Energy Program rates.