WINNIPEG — Manitoba Hydro is asking the Public Utilities Board to approve an interim rate increase of five per cent as of January 1.
The Crown corporation says the increase is needed to deal with its debt load and an environmental drought.
If approved by the PUB, the average residential customer who doesn’t heat with electricity, using about 1,000 kilowatts per month, would result in an approximate $5 increase on their monthly energy bill. For a customer who heats with electricity, using about 2,000 kilowatts a month, the increase on their monthly bill would be approximately $10.
“We know no one wants to see a higher electric bill,” said Jay Grewal, president and CEO of Manitoba Hydro. “Unfortunately, we’re in a situation where the drought is having a major impact on our finances and we don’t know when precipitation levels will return to normal. Without a rate increase, our ability to continue to reinvest in our system so that we can continue to serve Manitobans with reliable, clean energy will be hampered.”
Manitoba Hydro is forecasting a potential loss in its consolidated operation of between $190 million and $200 million for the current fiscal year.
The last electricity rate increase was 2.9 per cent which went into effect on December 1, 2020.