Manitoba Hydro rates will continue to rise for another 2 years, regulator decides | CBC News
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Manitoba Hydro rates will continue to increase over the next two years as the provincial energy regulator has made a final decision about what the Crown corporation can charge for electricity.
In a decision issued late Thursday afternoon, the Public Utilities Board determined Hydro’s general revenue rate will rise by 3.5 per cent in 2027 and then by three per cent in 2028.
The board also finalized what had been an interim rate hike of four per cent for 2026. Hydro ordered that interim hike in order to deal with drought conditions that have severely impacted the Crown corporation’s bottom line.
The trio of hikes approved Thursday work out to roughly the same compound rate hike Manitoba Hydro initially sought in 2025 — about 10.7 per cent over three years.
In its decision, the Public Utilities Board said Hydro needs more revenue right now to deal with drought conditions that have persisted through this winter.
“The board’s rate path ‘front-loads’ a portion of revenue to respond to drought impacts while aiming to support rate stability over time,” the board said in a statement.
The board also said Hydro must spend $31 billion to repair its aging infrastructure, including some of its main transmission lines. That’s up from an earlier estimate of $18 billion.
The board expressed concern about administrative spending and disallowed some planned software expenditures in the short term.
It also warned some Manitobans are having trouble paying their bills and recommended Hydro bring in a refundable tax credit targeted to low-income ratepayers.
A coalition of organizations that represents low-income Manitobans expressed disappointment with the magnitude of the rate hikes.
“They will have an impact on captive Manitoba ratepayers, especially those who have limited or low income,” said Katrine Dilay, a lawyer with the Public Interest Law Centre.
The centre represents the Manitoba branch of the Consumers Association of Canada, Harvest Manitoba, the Aboriginal Council of Winnipeg and the Manitoba Seniors Equity Action Coalition.
Manitoba Hydro has been asked to comment.