The City of Portage la Prairie has taken its first formal step toward adjusting utility rates for 2027 to 2030. During its July 14, 2025 meeting, Portage City Council gave first reading to the proposed by-law, which now heads to the Manitoba Public Utilities Board (PUB) for review. PUB is an independent oversight body that examines rate applications from municipalities across the province. That review process begins now that the bylaw has passed first reading.
Council Finance Chair Joe Masi explains the proposed changes follow a comprehensive rate study conducted in 2024 by Way to Go Consulting. If approved, the new rates would help cover growing operational costs associated with the city’s planned water treatment plant expansion. The increases would also support larger contributions to the Utility Reserve to fund long-term infrastructure.
Average household utility bills are projected to rise from $198.69 per quarter in 2026 to $290.38 by 2030, based on typical usage of 40 cubic metres. The adjustments would be introduced gradually: $223.71 in 2027, $245.93 in 2028, $268.15 in 2029 and finally $290.38 in 2030.
Focus on transparency and long-term planning
Masi says the move to submit the bylaw for PUB review is just the beginning of a larger process aimed at long-term sustainability.
“This is the start of a journey,” Masi says. “It’s probably about a year process for the review and we have always said as a council we are going to be very open and transparent with our new expanded water treatment plant which is why we’re starting the conversations now.”
Masi explains that the Public Utilities Board plays a dual role in evaluating the rate proposal weighing both financial sustainability of the utility to ensure the rates are fair and required as well as listening to public concerns. He emphasizes the current rates will remain in place for the rest of 2025 and all of 2026.
“Right now, the rates stay as they are. Nothing happens until the Public Utilities Board completes its work and issues a decision.” Masi notes.
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New rates reflect growth and increased treatment needs
The driving factor behind the increase is the anticipated operating cost of the new water treatment plant for Portage la Prairie. While the construction cost of the plant is not yet part of the rate structure, the city is starting to plan for the higher treatment and purification expenses the upgraded system will bring.
“The increase we’re asking for is for costs in terms of water purification and treatment.” Masi says. “This is strictly on the increased costs related to the new water and to treat the water for the new plant. It’s going to be a bigger plant, so there’s more costs, along with increasing the reserve to ensure adequate funding for future infrastructure needs.”
Masi says part of the city’s preparation included consultation with industrial stakeholders ahead of submitting the bylaw, however last night's meeting saw the reading of a letter of concern from one local industry regarding the projected increase. Masi says the city plans to continue engaging with its large users directly.
“We’re going to work and meet with them and continue the dialogue with them to address concerns they have,” Masi adds. “At the end of the day they can also provide a representation to the Public Utilities Board.”
Opportunities for public feedback and next steps
The PUB’s process includes an open period for public input once the rate application is posted. The Board will then decide whether to hold a public hearing before reaching a final decision. Until that happens, no further readings of the bylaw will take place.
Masi emphasizes the importance of staying proactive in the face of rising utility demands.
“We believe the water treatment plant is necessary for our future, both from an economic development point of view, but also to provide good clean potable water for our growing population here in Portage la Prairie,” Masi says.
Until the PUB delivers its response, Masi says the city will keep listening, meeting with stakeholders, and maintaining full transparency as the application moves through its next phase.
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