Manitoba Hydro has applied to The Public Utilities Board for approval of a 2.5% electricity rate increase to be effective September 1, 2012. Manitoba Hydro is also seeking the approval of the PUB to increase rates by a further 3.5% effective April 1, 2013.
“Increased revenues are required to support the ongoing reliability of electricity service to Manitobans. As with most other electrical utilities in Canada, generation and transmission systems that were installed decades ago are aging and require significantly higher costs to maintain. Compounding the effects of higher maintenance costs are the financial impacts of lower revenues due to economic conditions and lower prices for competing energy sources in export markets,” said Scott Thomson, Hydro’s President and CEO.
Thomson added that, “Even with the proposed rate increases, Manitoba consumers will continue to have electricity rates that are among the lowest in North America. For example, in our neighboring jurisdictions, electricity consumers in Saskatchewan and Ontario pay rates that are over 50% higher than in Manitoba while consumers in North Dakota and Minnesota pay rates between 30% to 40% higher than in Manitoba. Manitoba Hydro fully intends to maintain its competitive advantage in electricity rates for the benefit of all Manitoba energy consumers.”
If approved by the PUB, the electricity bill for a typical residential customer using an average of 1,000 kilowatt-hours per month, will increase by $1.80 per month effective September 1, 2012.
