Hydro customers will see their rates rise by 2.75 per cent effective May 1.
The Public Utilities Board approved the interim increase in a ruling today. It was less than the 3.95 per cent hike Manitoba Hydro had been seeking.
In its decision, the PUB approved a two per cent increase to cover inflationary costs. It OK’d another 0.75 per cent increase to help with the funding of the Bipole III transmission line.
In a news release, the PUB said it approved the rate increase because of reduced Hydro revenues from export sales, higher Hydro operating costs with respect to the Wuskwatim Generating Station and higher corporate operating costs, among other reasons.
Hydro had sought a rate increase of just under four per cent so it could implement a development plan that involves the construction of both the proposed Keeyask and Conawapa generating stations.
The PUB is still studying that plan in what is known as a Needs For and Alternatives To (NFAT) review process.
"The issues and decisions that result from the NFAT review will have impacts on the rates set in future general rate applications," the PUB said in a news release.
Manitoba Hydro’s next general rate increase application is expected this fall.