24°c Partly cloudy
18°c Cloudy periods
Winnipeg Free Press - ONLINE EDITION
Manitoba Hydro seeks bigger rate hike than originally sought
Artist's rendering of Keeyask generating station.
The province’s power utility wants an even bigger rate increase than first tabled to deal with its lower-than-anticipated financial performance and rising constructions costs.
Manitoba Hydro and the Public Utilities board began their first day of hearings today on Hydro’s request for a 3.5 per cent rate increase as of April 1.
As part of that process it also released its most up-to-date financial report.
What it says is no surprise: A sluggish U.S. economy has meant poorer export sales and the recent introduction of cheap natural gas south of the border has created another competing energy supply.
The changing market has not put off Hydro from its plans to build Bipole III down the west side of the province and to build two new generating stations over the next 20 years: Keeyask by 2019-20 and Conawapa by 2025-26.
Hydro says Keeyask will be needed to meet Manitoba’s own power needs, never mind export sales. http://www.hydro.mb.ca/projects/keeyask/project_overview.shtml
Construction on Conawapa has already been delayed one year, but will be needed not only to meet that growing domestic demand, but to meet export sales to Minnesota and Wisconsin. http://www.hydro.mb.ca/projects/conawapa/index.shtml
"As a consequence of the deterioration in projected financial results, moderately higher domestic rate increases will be required in order to restore the debt/equity ratio to the target level of 75:25 by the end of the 20-year forecast period," the report said. " In addition to the requirement for a 3.5 per cent rate increase effective April 1, 2013 -- currently being considered by the PUB -- it is projected that rate increases of 3.95 per cent will be required in each of the remaining 18 years of the 20-year forecast."
Hydro also said it has downgraded what it expects to see in revenue from export power sales by $2.9 billion over the 20-year period.
It has also said it expects construction cost top-ups for Conawapa by $2.4 billion and Keeyask by $0.6 billion.
"Net income is projected to remain relatively low (averaging about $40 million per year) for the first 10 years of the forecast," the report said. "Should a severe drought be encountered during the first 10-year period, net income and the equity ratio would be further challenged.
The full report is http://www.pub.gov.mb.ca/exhibits/mh-gra-2012-13-14/Consolidated_Integrated_Financial_Forecast_IFF12.pdf
Several groups are to question Hydro’s plans at the PUB hearing, which continue up to Dec. 21 (The PUB is not sitting Dec. 11), including the Manitoba branch of the Consumers Association of Canada, the Manitoba Industrial Power Users Group, Manitoba Keewatinowi Okimakanak and the Green Action Centre (GAC).
In its brief, the GAC said it is concerned that new dams and transmission will encourage more power use.
"We are concerned that demand reduction, efficiency improvements and alternative renewable generation will get subordinated to and displaced by new dams," GAC said.
"Green Action Centre believes the grid should be constructed to insure the capability for Manitoba Hydro to perform an enhanced role in support of renewable alternatives, geothermal, district heating, demand management, electrification of transportation, and various smart grid attributes that permit the more efficient, reliable, and cost-effective use of power."
History
Updated on Monday, December 10, 2012 at 2:59 PM CST: update
3:01 PM: update
3:05 PM: add art
3:11 PM: update
3:13 PM: update
More Local
- Back to Top
- Return to Local
More Local
(1 of 33 articles for today)
Forest fire situation unpredictable, premier says
7:04 PM 0Manitoba Premier Greg Selinger insists it’s too early and unpredictable to be optimistic about forest fire season in the province ...
Poll
Most Popular Local
- Court told driver hysterical after vehicle fatally hit highway worker
- Child in critical condition after West End crash
- Basic arithmetic back in class
- Province blows off wind megawatt goal
- City-wide average mosquito count drops
- Mountie hospitalized, dog euthanized after crash near Saskatoon
- Committee wants report on free replacement for garbage, recycling carts
- Pallister continues PST fight
- Known as kind, outgoing men
- MP Glover files new version of disputed 2011 election expenses
- Safeway stores likely to close
- Squirrel crawls out of Winnipegger's toilet
- Poolside feeding prompts eviction
- Stoppage of play off the field
- Court told driver hysterical after vehicle fatally hit highway worker
- Game-day planning a must
- No mad dash for concessions
- Child in critical condition after West End crash
- Kenyan wins Manitoba Marathon
- Traffic heavy as Bomber fans flock to U of M
- Father blasts 'horrific' movie
- Safeway stores likely to close
- Man dies after being pulled from vehicle submerged in Winnipeg retention pond
- Flood money paid for CEO's romantic trip
- Car in deadly crash stolen?
- UPDATE: Now with FAQ: Keeping the e-party going without the party-crashers
- Squirrel crawls out of Winnipegger's toilet
- Daycare provider charged with abandonment
- Poolside feeding prompts eviction
- Two people killed in crash north of Winnipeg
- Basic arithmetic back in class
- At 55, I'm wise to what's real in life
- Province blows off wind megawatt goal
- Court told driver hysterical after vehicle fatally hit highway worker
- Strong may they run: Manitobans reflect on that fateful day in Boston
- Bible Belt's bogeyman still haunts town
- Mountie hospitalized, dog euthanized after crash near Saskatoon
- City-wide average mosquito count drops
- Child in critical condition after West End crash
- Killer 'should stay in prison'
- Basic arithmetic back in class
- Squirrel crawls out of Winnipegger's toilet
- Safeway stores likely to close
- Doctors blamed for death
- App could give Winnipeggers chance to report bad parking, get paid
- $110-K worth of nickel plates stolen from Thompson mine
- A day in the life of 13,380 Manitoba Marathon participants
- Known as kind, outgoing men
- Stoppage of play off the field
- Bomber fans wowed by new stadium
- Basic arithmetic back in class
- Squirrel crawls out of Winnipegger's toilet
- Developers to unveil plans for bold downtown tower
- Father blasts 'horrific' movie
- Teachers support adding sexual-orientation themes to all curricula
- The crime fighter's revolution
- Safeway stores likely to close
- Car in deadly crash stolen?
- Fishing for fashion
- City's first urban reserve born
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
Have Your Say
Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?
Login SubscribeHave Your Say
Comments are open to Winnipeg Free Press Subscribers only. why?
SubscribeThe Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.