PUB findings determine public process needed to see if Hydro rates are fair to Manitobans

WINNIPEG -

The Public Utilities Board (PUB) has decided a public hearing is needed to determine whether Manitoba Hydro’s rates are reasonable.

The decision is in response to an application by the Consumer Coalition to hold a public process over Hydro rate hikes.

In a release issued Tuesday, the PUB said it "has found that the circumstances of Manitoba Hydro have changed substantially, necessitating a public process to assess whether current electricity rates are just and reasonable and costs are fairly allocated."

The PUB said changes such as the COVID-19 pandemic and current drought conditions in Manitoba have resulted in a change in Hydro’s circumstances.

The Coalition said it applauds the PUB's findings.

"A public process at the PUB allows all parties, including consumers, to question and understand Manitoba Hydro's business decisions and whether electricity rates are fair and reasonable," the organization said in a release.

The last hearing on Hydro rates was in 2018. The Coalition said since that time, Hydro has put the Bipole III transmission line and the Manitoba-Minnesota transmission into service, and it also confirmed a 30-year export sale with Saskatchewan Power.

The Coalition said these reasons are why it asked the PUB to review Hydro back in March 2021.

Crown Services Minister Jeff Wharton said in a statement that the government understands that Manitobans need stability with Hydro rates.

"We remain committed to keeping those affordable for Manitoba ratepayers," Wharton said. "Manitoba Hydro's financials are continuously updated and as the minister responsible, I will continue to work with them to ensure their financial stability going forward."

The PUB said it will determine next steps for the public process after hearing from interveners and Hydro. Meanwhile, Wharton said he expects the panel will meet "promptly to determine next steps and we will continue to monitor closely."

Last year, the province introduced legislation to raise rates by 2.9 per cent and it is proposing another hike of 2.5 per cent in 2021.

The government has also proposed Bill 35, which would give Cabinet the power to change rates without PUB review.

Adrien Sala, the NDP's critic for Manitoba Hydro, said independent oversight of the Crown corporation is important.

"That's why this new order from the PUB is so important – it makes it explicitly clear that what the PCs are doing with Hydro is wrong," Sala said in a statement. "Manitoba families are paying higher bills each month because the PCs are hiking hydro rates at the cabinet table without justification. The PCs need to keep their hands off Hydro."

Manitoba Hydro told CTV News it has received the PUB order and is reviewing it, but it will not provide comment until the review is complete.