Manitoba Hydro submitted on Friday, March 28 its three-year General Rate Application to the Public Utilities Board of Manitoba, seeking an electricity rate increase of 3.5% in each of the years 2026, 2027 and 2028.
If approved, Manitoba Hydro would apply the first increase on January 1, 2026. Subsequent increases would apply January 1, 2027, and January 1, 2028. Manitoba Hydro is not seeking a rate increase in calendar year 2025, consistent with the provincial government’s rate freeze.
The proposed increases would result in average bill impacts to residential customers using 1,000 kWh per month of $3.69, $3.81 and $3.94; and average bill impacts to residential customers using 2,000 kWh per month of $7.05, $7.28 and $7.53, for each fiscal year respectively.
The last Manitoba Hydro electricity rate increase was 1% in April 2024.
“We realize this is a challenging time for Manitobans already paying higher prices for many goods and services,” says Allan Danroth, Manitoba Hydro’s President and CEO. “Manitoba Hydro is also facing increased costs and the rates we’re requesting will ensure we can continue to provide safe, reliable energy now and into the future.”
Manitoba Hydro’s finances are affected by many factors outside of the utility’s control, such as drought and low water levels that limit the amount of energy the utility can sell on the export opportunity market. Manitoba Hydro reported a net financial loss in two of the last three years due to drought.
Manitoba Hydro is also facing significant costs to maintain and upgrade many of its existing aging assets.
“For example, our Bipole I and Bipole II converter stations are a critical part of our high-voltage direct current (HVDC) system. These stations were designed to be in service for 35 years and are currently at 55 years, and many major components of the system need replacement,” said Danroth.
“The HVDC system sends a large proportion of our electricity from northern generating stations to southern Manitoba and is the backbone of Manitoba Hydro’s ability to provide power to customers across the province. As such, we need to ensure that system continues to operate reliably and safely not just today and tomorrow, but 10, 20 or 30 years from now,” Danroth said.
In addition, as announced in Budget 2025, the provincial government is strengthening Manitoba Hydro for the future by reducing the debt guarantee fee and eliminating the Crown Corporations Capital Tax (CCT) paid by the utility. Over the next 20 years, these changes will reduce Manitoba Hydro’s expenses by an average of $268 million each year. These changes will help keep Manitoba Hydro financially healthy, keep rates affordable, while allowing the utility to continue to invest in its system to ensure safe and reliable service.
The proposed rate increase will also help Manitoba Hydro develop new energy sources to supply Manitoba’s growing need for electricity. Its 2025 Integrated Resource Plan, which will be published this fall, will identify what resources will be required to meet that demand. This will include purchasing up to 600 megawatts Indigenous majority-owned wind generation.
While many North American utilities are forecasting rate increases at or above inflation due to increasing costs, the rate increases requested by Manitoba Hydro are expected to keep electricity rates in Manitoba among the lowest in North America.
