Solid energy service and lower prices in the long run
Providing you with clean, safe, reliable energy is our job at Manitoba Hydro, however current electricity rates are not covering the costs of that work. If action is not taken, our debt will grow to levels that expose you to the very real risks of reduced service reliability and increased costs resulting from drought or rising interest rates.
That’s why we are proposing to increase electricity rates as part of our 10-year plan to address these challenges. Doing this now – instead of putting it off to tomorrow – will help us continue providing the reliable energy service you need and keep your electricity rates lower in the long-term.
How much more will you pay?
In August, the Manitoba Public Utilities Board approved an interim 3.36 per cent increase in your electricity bill. We are also asking for an additional 7.9 per cent increase in 2018. For the average residential customer without electric heat, these increases equal about $10 more a month.
See how your current rates compare.
Why are we asking for more?
We are borrowing billions of dollars to rebuild aging infrastructure and build new generation and transmission to serve growing communities. As this debt grows, expected revenues over the next decade are not enough to cover our operating costs, ongoing maintenance and the payments needed to finance our debt. This puts all of us at risk.
What are the risks?
Without more income, we cannot absorb additional costs, including droughts or increases in interest rates. The costs of these events would need to be passed through to you immediately instead of gradually, resulting in unplanned rate increases much higher than those we are asking for now. It could also affect our ability to invest in renewing our aging system, directly hurting the reliability of your energy service.
Could the increases be lower?
Paying less now increases the likelihood you will face higher annual increases in the future and over a longer period of time. It further exposes you and your bill to the additional costs of a drought or other events. It could also affect the reliability of your electricity service as necessary work to renew and expand our aging system is delayed.
Facing the future head-on
Addressing our financial problems now instead of putting it off to tomorrow will protect you and your children from even higher rate increases in the future. It will help ensure the ongoing reliable supply of the energy you count on. And, it will support our province by protecting our provincial credit rating and supporting growth.
Rates: part of the bigger picture
While our 10-year plan to restore Manitoba Hydro’s financial health includes asking you to pay more for your electricity, it also includes reducing our operating costs by streamlining our company and pursuing additional opportunities to sell our clean, reliable energy outside of Manitoba.
Learn more about the value of exports.
Have questions? We want to hear from you
The Manitoba Public Utilities Board, an impartial tribunal and regulator, is currently reviewing our application to increase electricity rates in 2017 and 2018. That review includes a two-month public hearing set to begin on December 4.