Manitoba Hydro wants rate increase, but plans upgrades

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This article was published 31/03/2025 (197 days ago), so information in it may no longer be current.

Manitoba Hydro has proposed an electricity rate increase of 3.5 per cent to the Public Utilities Board of Manitoba (PUB), as it is set to upgrade equipment throughout Westman to ensure steady power, reducing the number and duration of outages.

The corporation, in its three-year General Rate Application (GRA) to the board, plans to increase the rate in each of the years 2026, 2027 and 2028. If approved, Manitoba Hydro would apply the first increase on Jan. 1. Subsequent increases would apply on the same date in 2027 and 2028.

Manitoba Hydro is not seeking a rate increase in calendar year 2025, consistent with the provincial government’s rate freeze, the corporation stated in a press release issued over the weekend.

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.

Manitoba Hydro realizes this is a challenging time for Manitobans already paying higher prices for many goods and services, president Allan Danroth said.

“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,” Danroth said.

The release added 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,” it stated. “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.”

It added 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. The company also faces 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.”

Manitoba Hydro says it is upgrading equipment throughout western Manitoba to ensure steady power, reducing the number and duration of outages.

The upgrade is due to aging equipment, damage from winter storms, and electrical infrastructure in western parts of the province is becoming less reliable and struggling to keep up with demand — and costs more to maintain, the corporation stated.

To ensure reliable, affordable energy, Hydro is working on three significant projects throughout the Westman and Parkland regions. They are Brandon-Victoria Station, Portage Area Capacity Enhancement (PACE), and Dauphin-Vermillion Station, a spokesperson said in an email.

“For Brandon, we completed some of the foundation work in fall 2024 and we’ll be starting construction this fall,” the spokesperson said. “We’re hoping to have one transformer bank in service by the end of this year, with the remaining work completed next year. Again, that could change as we work.”

For PACE, he said, the first stage of the project is underway and construction of the Wash’ake Mayzoon Station was completed in fall 2024, while transmission line construction is now being finalized.

“The goal is to have the station energized in early May. The second stage of the project, which includes a new transmission line from Dorsey Converter Station to Wash’ake Mayzoon Station, is expected to be completed in early 2027.”

Regarding the Dauphin timeline, preliminary work was completed in the fall of 2024, and construction began this month. The aim, he said, is to have transformer banks in service later this year, though that timeline may change depending on work progress. The remaining work is scheduled for completion in fall 2026.

“These projects are not for generating new electricity, this is transmission and distribution infrastructure,” he added. “The upgrades will increase reliability, reduce maintenance costs, and allow Manitoba Hydro to send more energy to the region as needed, as demand and capacity grow.”

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