The Public Utilities Board (PUB) has approved a 2.75% increase to Manitoba Hydro rates effective May 1, 2014.
2% of the increase is for the approximate annual rate of inflation. The other 0.75% increase will go into an existing Deferral Account to assist with the payment of the Bipole III Transmission project.
The major reasons for this rate increase are to address:
- Reduced revenues from export sales
- Higher operating costs related to the Wuskwatim Generating Station
- Higher Operation, Maintenance & Administration costs
- Funding of capital expenditures undertaken to support the reliability of electrical service
- Manitoba Hydro’s financial and credit rating integrity over the longer term
Manitoba Hydro originally filed for a 3.95% increase for the construction of both Keeyask and Conawapa Generating Stations. That increase was denied because the Board has not finished its review of Hydro’s proposed development plans.