Manitobans would temporarily lose public hearings on Hydro rates under new law

Manitobans won't get a say on potential hikes to electricity rates for the next few years, if a new bill becomes law.

The independent Public Utilities Board currently allows Manitobansto have theirsay through public hearings every year Manitoba Hydro applies for a rate change. It's the PUB that then rules on whether to allow the rate change.

But the province introduced legislation Thursday that would suspend that practice until March 2024. Any rate adjustments until then would be approved through government regulation.

Beginning that spring,the PUB would return to approving electricity rates under the proposed legislation,butforfive-year intervals rather than annually.

The province says the new rules, if they pass, would save taxpayers money. It pegs the cost of annual hearings by the utility board, which also oversees Manitoba Public Insurance and Centra Gas,at roughly $10 million a year.

But Bryon Williams, director of the Public Interest Law Centre, says the third-party watchdog has saved Manitobansfar more money than it costs.

"It is shocking to me that Manitoba Hydro, which has authored the fiasco of Bipole III and Keeyask cumulatively$14 billionof mismanaged projects would be having the hubris to suggest that annual costs of this magnitude are a barrier," he said.

'That voice will be sadly missed'

He said the PUBsaved Manitobans $60 million one year, when in 2018,it rejected Hydro's callfor a7.9 per cent rate increase, allowinga3.6 per centhike instead.

The utilities board also pushedthe Manitoba government years earlier to scrap the$10.5-billion Conawapadam project.

"Fromour client's perspective, the Public Utilities Board has been a critical place where consumers can bring the best evidence and independent oversight from people from across North America, where low-income individuals and others can have their say," Williams said.

"Ina province where Manitoba Hydro has a legislated monopoly, ithas been the one consistent voice sticking up for consumers, and that voice will be sadly missed."

Under the proposed legislation, by2024, the PUB would approve electricity rates in five-year intervalsbased on anticipated revenues.

The bill calls for future rate hikesto be under four per cent, or double the rate of inflation, whichever is greater.

The new multi-year rate approvals would "improve the timing and cost efficiency of all review processes, benefitting ratepayers who indirectly pay the costs of the rate reviews," Crown Services Minister Jeff Whartonsaid in a statement.

Under a gradual transition to the new model, therates will be set by government initially, while Manitoba Hydro's newlong-term strategic plan is rolled out and implemented.

Thenew process isa win for customers, who will have better predictability in the rates they'repaying, says Manitoba Hydro spokesperson Bruce Owen. He adds the changes will strengthen the Crown corporation's balance sheet and debt-reduction targets.

Gloria Desorcy, executive director of the Manitobabranch of the Consumers' Association of Canada, questioned the value in predicting electricity prices years in advance.

"Whenyou ask for public input how reliable or how meaningful is the input if there's many factors we're not sure about?"

The province said rates during the five-year periodwill escalate annually based on inflation.

NDP accuses government of overreach

Adrien Sala, the NDP's critic for Manitoba Hydro, accused the government of gutting public oversight of the utility.

"It's important to remember that in taking away this authority from the PUB, we're essentially putting Manitoba ratepayers at greater risk of seeing big rate increases."

The proposed legislation would also amendthe rate approval process for Manitoba Public Insurance.

ThatCrown corporation would continue to apply for rate increases annually, but "moreextensive reviews" of MPI's operations,capital management or investment strategies would occur every five years under the new legislation.

The bill would also makeWinnipeg water and sewerratessubject to PUB hearings, which would bringthe city inline with other jurisdictions.