Hydro rates are going up five percent on Tuesday, and possibly another four percent next year, the Public Utilities Board ruled Monday.
Starting Canada Day, power users will be charged the new rate. Next April, Manitoba Hydro has the chance to appeal to the PUB for a further four-percent rate increase.
Hydro was only asking for a 2.9 percent rate hike, but the PUB went beyond that, citing higher interest and exchange rates, the looming risk of drought and the skyrocketing cost of building the Wuskawatim dam.
The board noted that power rates aren't going up nearly as much as natural gas rates, which could increase 30 percent this winter over last. And the board noted that Manitobans still enjoy some of the cheapest rates on the continent.
Cities and towns paying for street lights are exempt from the five percent hike. They've been arguing for years that they are overcharged for street lights.
The contentious issue of a big rate hike for new, heavy industrial users is in limbo. Hydro has agreed to refile their proposal to charge big power users a much higher rate.
maryagnes.welch@freepress.mb.ca
PREVIOUS
