The Public Utilities Board approved, on an interim basis, an application from Centra Gas Manitoba Inc. (Centra) for a general revenue increase of 4.5 percent effective November 1, 2024.
The interim approval reduces Centra’s expected losses during the 2024/25 fiscal year, but it does not completely prevent losses in that year or subsequent fiscal years. This interim approval is for a one-year period and is subject to the completion of a full public review of Centra’s 2024/25 general rate application, which was filed with the Board on October 7, 2024. This public review is expected to be completed in 2025 per the Board’s process schedule, which is currently being finalized.
The Board also approved, on an interim basis, new delivery rates effective November 1, 2024 to reflect changes to upstream gas costs and the overall refund to customers of an aggregate balance of $5.1 million in previously incurred gas costs.
In addition to the above, the Board approved Centra’s separate application to decrease, effective November 1, 2024, both the Gas Commodity rate from $0.0785/m3 to $0.0614/m3, as well as the Commodity Cost Balancing Deferral rate rider to $0.0021/m3 (owing to Centra). Gas Commodity is sold on a cost recovery basis, meaning that Centra charges customers only what Centra pays for Gas Commodity and does not make a profit on its sale. The current Gas Commodity rate decrease is the result of forecast decreases in the North American natural gas market prices over the next 12 months.
The combined effect of the above changes is projected to decrease the annual bill for a typical residential customer by approximately 2.1 percent, or $12/year. Centra’s Gas Commodity rate and Commodity Cost Balancing Deferral rate rider will be reviewed again for February 1, 2025.
Gas Commodity rates for customers that have signed fixed-term fixed-price contracts, with either Centra or a private broker, are not affected.
