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PUB approves Hydro's 2.5% rate increase

By: Staff Writer

Wednesday, Aug. 29, 2012 at 11:39 AM | Comments: 2

WAYNE GLOWACKI / WINNIPEG FREE PRESS ARCHIVES Enlarge Image

The cost of electricity in Manitoba is going up by 2.5 per cent effective Sept. 1.

The Manitoba Public Utilities Board this morning issued an order approving Manitoba Hydro’s application for the interim rate increase. The large Crown corporation lost money on its operations in the three months ending June 30, the PUB said. Exactly how much has not been revealed since the provincial byelection in Fort Whyte has delayed the release of Hydro’s most recent quarterly report.

Hydro had asked for the interim increase to protect its credit rating due to losses on its operations. It said in its June submission to the PUB that export prices for electricity – already weak – are not expected to improve substantially in the near future. Hydro said it faced a $79 million revenue shortfall this year compared with profits totaling $139 million last year.

With the 2.5 per cent increase kicking in Sept. 1, Hydro will receive an additional $20 million in revenue for the remainder of the 2012-2013 fiscal year ending March 31 next year.

The PUB said in approving the interim rate increase Hydro’s short-term financial results will be improved. Hydro is also seeking a further 3.5 per cent increase in domestic electricity rates effective next April 1. That application will be subject to public hearings beginning Dec. 10.

Meanwhile, the PUB said in its 25-page order that it has "real concerns about the deteriorating financial position of (Manitoba Hydro)."

It also noted that the cost of operating the new Wuskwatim dam in a period of soft electricity markets has added to Manitoba Hydro’s financial burden.

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Posted by:Bill the Needle

August 30, 2012 at 7:44 AM

Anybody who expects transparency from this public utility will continue to be terribly disappointed.

Posted by:Chris29

August 29, 2012 at 3:54 PM

Red flags. Red flags. Red Flags however our Provincial Government may be color blind.Cap ex for Mb Hydro may just sink all of us into DEBT Manitoban's just cannot afford.<br />WE all need to know just how much the Government uses Hydro's cash flow to support their never ending waste of taxpayers money.
All Provincial Governments have used Hydro as their source of extra cash and it needs to stop NOW!!!!

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