Manitoba Hydro revises its rate-hike request, cites cut in government charges
Manitoba Hydro is reducing its request for rate increases for the next two years and is crediting a recent provincial government fee reduction.
Earlier this month, the Crown-owned utility said it would ask the provincial regulator, the Public Utilities Board, for rate hikes of 3.5 per cent in each of the next two years. The utility said Tuesday it is revising that request to two per cent in each year.
It's also revising its long-term projections, from annual rate hikes above the rate of inflation to rate hikes of two per cent annually for the next 19 years.
The move follows a decision by the Manitoba government last week to cut in half fees that the province charges the utility for debt guarantees and water usage. Manitoba Hydro says the changes would save it about $190 million this year and more in future years.
"The reduction announced by the government will help keep rates low for customers, and that's great news when we know many customers are struggling with the cost of living," Jay Grewal, the Crown corporation's president and chief executive officer, said in a press release Tuesday.
"It also gives Manitoba Hydro the ability to start to reduce our debt while making investments in our system so our customers get the service they demand."
If the request for two per cent increases is approved, the average customer who uses electric heat would see their monthly bill increase by $4 in each of the next two years, the utility said. People who heat with natural gas or other sources would see their electric bill increase by $2.
Hydro rates have become a key issue in the lead-up to the provincial election slated for Oct. 3.
The Opposition New Democrats, who are leading in opinion polls, have promised to freeze rates if they are elected but have refused to explain how that might be done.
Manitoba Hydro's debt tripled over 15 years due in part to cost overruns on a generating station and a major transmission line under the former NDP government. The utility says it currently pays out about 40 cents of every dollar to service its $24-billion debt.
Moody's, an international credit rating agency, warned in the spring that recent electricity rate hikes had not been high enough to keep up with rising costs and debt servicing. The agency said the utility's ability to be self-sustaining was at risk.
This report by The Canadian Press was first published Nov. 29, 2022.
CTVNews.ca Top Stories
![](https://www.ctvnews.ca/polopoly_fs/1.6978649.1722015109!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
Missing 3-year-old boy found dead in creek in Mississauga, Ont.: police
A three-year-old boy has been found dead a day after he went missing in a park in Mississauga, Ont., Peel police say.
Celine Dion delivers stirring comeback performance at Paris Olympics opening ceremony
Against the rainy Paris night sky, Celine Dion staged the comeback of her career with a powerful performance from the Eiffel Tower to open the Olympic Games.
Jasper wildfire: 'Several weeks' before residents can return, premier says
Premier Danielle Smith said Friday afternoon in Hinton while weather conditions are cooler, the Jasper fire is still considered out of control and that Jasper residents can expect to be away from their homes 'for several weeks.'
Irish museum pulls Sinead O'Connor waxwork after just one day due to backlash
An Irish museum will withdraw a waxwork of singer-songwriter Sinéad O'Connor just one day after installing it, following a backlash from her family and the public, it told CNN in a statement on Friday.
Winnipeg senior's account overdrawn for $146,000 water bill
A Winnipeg senior is getting soaked with a six-figure water bill.
FBI says Trump was indeed struck by bullet during assassination attempt
Nearly two weeks after Donald Trump's near assassination, the FBI confirmed Friday that it was indeed a bullet that struck the former president's ear, moving to clear up conflicting accounts about what caused the former president's injuries after a gunman opened fire at a Pennsylvania rally.
Driver charged after flashing high beams at approaching police
Orillia OPP arrested and charged a driver with impaired driving after flashing their high beams.
Powerful cartel leader 'El Mayo' Zambada was lured onto airplane before arrest in U.S., AP source says
A powerful Mexican drug cartel leader who eluded authorities for decades was duped into flying into the U.S., where he was arrested alongside a son of Joaquin "El Chapo" Guzman, according to a U.S. law enforcement official familiar with the matter.
Turpel-Lafond won't sue CBC over Cree heritage report that took 'heavy toll': lawyer
The lawyer for a former judge whose claims to be Cree were questioned in a CBC investigation says his client is not considering legal action against the broadcaster after the Law Society of British Columbia this week backed her claims of Indigenous heritage.