Manitobans face another hydro rate increase

Manitobans could be facing yet anotherelectricity rate increase.

Manitoba Hydrois seeking a 3.5 per cent hiketo take effect in April 2013, butconsumer advocates are fighting the proposal at a Public Utilities Board hearing on Monday.

"We have to face the realities of our system. We have to provide [an] economic system that's reliable. And to do that, it certainly costs money," said Glenn Schneider, a spokesman for Manitoba Hydro.

Schneider said export sales have not been generating the revenue officials had expected.

The public utility was alreadygranted a two per cent hike in Apriland another2.5 per cent increase in September.

If the latest request is granted, Manitobans will be payingeight per cent more in just one year, officials with theConsumers' Association of Canadatold the hearing.

Furthermore, Manitoba Hydro is forecasting annual increases of up to 3.95 per cent annually until 2021.

The consumers' association warned that Manitobans are already facing electricity ratesabove inflation rates.

Gloria Desorcy of the association's Manitoba branch says she's worried about the impact the increases could have on ratepayers, "and not just for this two-year period."

"We're also looking forward, and we're not seeing let-up," she said.

Manitoba Keewatinowi Okimakanak (MKO), an organization representing most First Nations in the province's north, is also opposed to the rate request.

It told the hearingthat many First Nations customers are low income families that can't afford the increases.

The hearing will continue into next week with a decision expected by the Public Utilities Board in the new year.