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Manitoba Hydro Rates to Climb Further
20 Mar
Summary
- Electricity rates will increase by 3.5% in 2027 and 3% in 2028.
- A 4% interim rate hike for 2026 has been finalized due to drought conditions.
- Infrastructure repairs will cost an estimated $31 billion, up from $18 billion.
Manitoba Hydro customers will see continued electricity rate increases over the next two years. The provincial energy regulator has approved a 3.5% general revenue rate hike for 2027, followed by a 3% increase in 2028. This decision solidifies a prior interim rate increase of four percent for 2026, which was instituted to mitigate the financial impact of persistent drought conditions on the Crown corporation's operations.
The Public Utilities Board's decision aims to "front-load" revenue to address current drought challenges while promoting long-term rate stability. Hydro is also facing a substantial increase in projected infrastructure repair costs, now estimated at $31 billion, significantly higher than the previous $18 billion projection. Concerns were also raised regarding administrative spending, with some software expenditures disallowed.
The regulator acknowledged that some Manitobans are struggling to pay their bills and recommended a refundable tax credit for low-income ratepayers. However, a coalition representing low-income Manitobans expressed disappointment with the overall magnitude of the approved rate hikes, citing potential impacts on vulnerable populations.
