Hydro rates in our province might not be rising next year by as much as what had been anticipated.
Manitoba Hydro has filed an update to its recent multi-year General Rate Application with the Public Utilities Board (PUB). If approved the average electricity rate increase will be two per cent for each of the fiscal years of 2023-24 and 2024-25.Â
The utility had initially asked for 3.5 per cent in each of the next two fiscal years. Manitoba Hydro is also seeking confirmation on the interim 3.6 per cent rate increase approved by the PUB that took effect in January 2022 to help counter the effects of the 2021 drought.
According to Manitoba Hydro, the lower rate request is due to the Manitoba government's recent decision to reduce what it collects from Manitoba Hydro annually in provincial debt guarantee and water rental payments. It is estimated the changes will save Manitoba Hydro approximately $190 million in the 2022-23 fiscal year alone.
"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," says Jay Grewal, President and CEO of Manitoba Hydro. "The changes will allow us to start reducing our debt while continuing to make the needed investments in our system to maintain reliable service to our customers. They also ensure we have the financial resources available to address the risks created by factors out of our control like increasing interest rates, export prices and droughts like what we saw in 2021."
Manitoba Hydro states that if approved, the rate increase will take effect September 1, 2023, and will result in less than three dollars per month for the average residential customer without electric heating and less than six dollars per month for those with electric heating.