PUB approves 3.36% increase to hydro rates

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This article was published 28/04/2016 (3511 days ago), so information in it may no longer be current.

Get ready to start paying more on your Hydro bill.

The Public Utilities Board (PUB) announced Thursday it has approved a 3.36 per cent increase to Manitoba Hydro rates.

This will cost the average customer without electric heating $2.83 more a month. For customers with electric heating, their monthly bill will increase by $5.41 monthly.

The approved increase is less than the 3.95% requested by the Crown corporation in December. Manitoba Hydro made the case that new projects, coupled with province’s aging distribution system required the rate increase.

However, in the PUB’s decision released Thursday it argued the long-term financial projections for Manitoba Hydro have “improved significantly” and the increase of 3.36 per cent is the best option. The PUB also opted to delay the increase until August as opposed to a April 1 increase requested by Manitoba Hydro. The PUB argues this it to avoid the impact on ratepayers, who saw their bill go up by 3.95 per cent last August.

The PUB is an arm’s length board that regulates the rates charged by Manitoba Hydro.

It may not be the requested increase, but Manitoba Hydro spokesman Scott Powell said he is “pleased” with the decision.

“The PUB has seen the need for moderate and predictable rate increases to fund our ongoing capital projects and rehabilitation of the (province’s) electrical infrastructure, so we are generally pleased with today’s orders ,” Powell told the Free Press Thursday.

This is considered an “interim” increase, which will be finalized in the fall following a general rate application Manitoba Hydro has to file.

The PUB board directed that all revenues from the August rate increase go to a Bipole III deferral account to offset the impact of rate increases expected when the transmission line and Keeyask generating station come into service.

Powell said the move will help control the need for any outrageous increases as the mega-projects come online.

“If you had a 0 (per cent increase) then you would have a much larger increase when they come into service. This allows us to smooth out the impacts that would occur when those projects come into service,” Powell said.