By Steve Lambert, The Canadian Press
Manitoba Hydro power lines are photographed just outside Winnipeg on May 1, 2018. (THE CANADIAN PRESS/John Woods)
Manitoba electricity rates will rise over three years under a new order by the Public Utilities Board.
The provincial regulator has confirmed a four per cent rate increase for all customer classes that took effect in January under an interim order.
The board has also set targeted revenue increases of 3.5 per cent next January and three per cent in January of the following year, although the exact rates will vary for different types of customers.
The increases are close to what Crown-owned Manitoba Hydro had asked for in order to address drought conditions that reduced water levels needed for power generation.
The utility has also cited the need to repair and upgrade its infrastructure in the coming years.
The board’s decision says the effects of dry weather have been significant.
“The board found Manitoba Hydro is experiencing significant short-term financial pressure due to severe drought conditions, with 2025 water flows approaching the second-lowest levels in 112 years,” read the board’s decision, released Thursday.
The board also said cost estimates for capital projects are rising, and pointed to a current project aimed at improving the reliability of the transmission system that brings power from northern rivers to populated areas in the south.
“The placeholder estimate for that project in this proceeding is $6.8 billion, up from $1.8 billion previously. The board expressed concern with cost escalation and the evolution of estimates.”
