WINNIPEG — Manitoba Hydro is asking the provincial regulator to approve electricity rate increases of 3.5 per cent in each of the next two years.
The Crown-owned utility says the increases are needed to deal with fluctuating interest rates, water levels and export prices.
Last year, the utility posted a $248-million loss, due partly to low water levels that left less energy for export.
It is projecting this year a net income of $559 million due to higher water flows and higher prices on the export market.
Manitoba Hydro is also dealing with a $24-billion debt load, due in part to large cost overruns in recent years on a major transmission line and generating station.
The Opposition New Democrats have been predicting for months that rate increases could reach five per cent annually.
The Progressive Conservative government recently passed a law to cap any increase at a maximum of five per cent or the rate of inflation, whichever is lower.
This report by The Canadian Press was first published Nov. 16, 2022
The Canadian Press