A controversial proposal to raise hydro rates for large industrial users coming into the province is likely to be postponed for several months.
The Public Utilities Board of Manitoba has said it will hold separate hearings this fall or winter to determine the criteria to be used to determine which businesses would be levied the new rate.
Earlier this month, the PUB left it up in the air as to whether it will decide on the new rate before it determines the criteria for inclusion.
The proposed new rate might double the hydro bill for some users. As it stands, the proposal would only affect new large users and incremental growth from existing large users and others would have current consumption rates grandfathered.
Tamara McCaffrey, a lawyer representing Manitoba Industrial Power Users Group (MIPUG), said she believes Manitoba Hydro is going to resubmit its proposal that called for higher rates for new large users unless they could demonstrate a certain level of job creation or other economic development.
Hydro spokesman Glenn Schneider would not confirm a new proposal is forthcoming, but did agree there will more public consultation before the PUB is asked to decide on criteria.
The PUB hearings on the general rate application are to wrap up next week, with final submissions from the intervenors and Manitoba Hydro.
The one element of the proposed new rate the PUB may decide on first is to set Dec. 31, 2007, as the benchmark date for the usage level of the group.
McCaffrey said that generally, her clients -- representing the largest hydro users like chemical plants, mines, and forestry companies -- are pleased the PUB is not going to decide on a proposal that MIPUG members believe is not well thought out.
"We are hopeful that we will have other opportunities for consultation regarding the new rates," she said.
One of her group's original complaints was that Hydro did not adequately seek input from those users in proposing the new rate.
MIPUG, as well as other business groups in the province, took exception to the part of the proposal that would allow the PUB to set rates based on the PUB's determination of what constitutes economic development.
martin.cash@freepress.mb.ca
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