Winnipeg Free Press - ONLINE EDITION

Hydro rate-hike hearing complicated by whistleblower concerns

WINNIPEG - The confusing regulatory mess caused in part by a whistleblower complaint got a little messier Tuesday morning as lawyers argued about whether Manitobans ought to pay higher power rates while the mess gets sorted out.

Manitoba Hydro had asked the Public Utilities Board for a 2.9 per cent rate hike effective April 1. But it's clear the "mega-hearing" needed to determine whether Hydro deserves a rate increase will take months longer than that, especially if the whistleblower's concerns over Hydro's financial and power suply risks spark an entirely separate hearing.

In the meantime, the PUB is considering whether Hydro needs more money from homeowners now - perhaps a 2.9 per cent hike, or something less than that.

But some intervenors at Tuesday's hearing said Hydro shouldn't be rewarded for stalling the regulatory process and releasing only a trickle of documents. The province's big corporate power users said giving Hydro a rate hike without a real hearing would set an "injurious and unprincipalled precedent."

Hydro argued it needed modest and regular rate hikes to maintain its good financial picture.

Meanwhile, at the downtown courthouse, Hydro began an appeal to force the whistleblower to hand over her reports to KPMG, another consulting firm Hydro has hired to test the whistleblower's findings that Hydro could face bankruptcy and blackouts.

Another hearing is likely later this week to discuss a publication ban.
 

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