Hydro rates are going up but not by as much as the crown corporation had asked for.

 

The Public Utilities Board has approved a 3.6 per cent average increase to Manitoba Hydro electricity rates effective June 1st, 2018. Hydro had been asking for 7.9 per cent.

The PUB is also ordering the creation of a new First Nation On-Reserve Residential Customer Class, a customer class that will not receive an increase in electricity rates this year. The Assembly of Manitoba Chiefs is calling it a major victory.

"I am pleased with the PUB's decision. The cost of living in an Island Lake First Nation is exorbitant, so this new on-reserve residential rate is welcome news. However, this is beneficial not only for northern and remote First Nations but all First Nations in Manitoba," says St. Theresa Point First Nation Chief David McDougall in an AMC release.

The board believes electricity bills place a particularly heavy burden on First Nations communities due to inadequate housing infrastructure and poverty. In its report, the PUB says the order to create a new customer class was not a unanimous decision, with one board member dissenting.

The PUB also says it remains concerned about affordability for consumers. It's recommending the province assume responsibility for the development of bill affordability programs for lower-income customers. The PUB is also recommending the province not collect about $900-million in Bipole III revenues to off-set the cost of building a more expensive route decided on by the previous government, a cost the PUB says should be the responsibility of taxpayers, not Hydro ratepayers.

The PUB also wants the province to direct some carbon tax revenue to keeping future electricity rates down but Crown Services Minister Cliff Cullen said today the province is rejecting that recommendation.

"The intent of the carbon tax is to put it back in the hands of Manitobans," said Cullen.

The PUB issued 37 orders and 16 recommendations, and Cullen said the government looks forward to reviewing them in the days and weeks to come. Cullen said Manitoba remains one of the lowest cost jurisdictions for electricity in North America.