Manitoba Hydro makes case for 3.95% rate increase to PUB

Manitoba Hydro appeared before the Public Utilities Board on Monday to make a case for raising electricity rates by nearly four per cent.

In January, Hydro announced a plan to increase rates by 3.95 per cent in 2015 and 2016, but the PUB would have to approve those increases.

Hydro argued at the time that the increases are needed to ensure a safe, reliable supply of electricity in Manitoba.

The crown corporation was already granted a 3.5 per cent increase in 2013 and an interim increase of 2.75 per cent in 2014.

On Monday, officials from the Manitoba branch of the Consumers'Association of Canada told the PUB they opposed the rate increase.

They said if PUB approves the application, the rate increase would be about 10 per cent over the past three years, and the association wants more transparency from Manitoba Hydro about its case for another rate increase.

The Manitoba Metis Federation, which represents about 140,000 Manitobans, also opposed the increase.

Officials with the federation said the rate increase would hurt low-income customers and business owners in rural Manitoba.

They also said they're worried about more increases planned for the next five years.

Officials with Manitoba Hydro said the increase is necessary to cover the higher borrowing costs for projects like the Keeyask Generation Station.

If the rate increase is approved, the 2015 increase would be retroactively applied.

The second proposed rate increase is scheduled for April 1, 2016.