The Council of Canadians Winnipeg Chapter calls for Manitoba Hydro to participate in a long overdue public rate review process. Despite Hydro’s growing scope, it has not prepared a long-term rate-setting forecast or a detailed operating and maintenance budget since 2015. The ratepayers and citizens of Manitoba need the Public Utilities Board to order Manitoba Hydro to participate in a “status update” hearing now!
Our letter to the PUB follows
April 21, 2021
Dr. Darren Christle, Board Secretary
Public Utilities Board
400-330 Portage Avenue
Winnipeg MB R3C 0C4
publicutilities@gov.mb.ca
Re: Manitoba Hydro Hearing before the Public Utilities Board
Dear Dr. Christle,
We are writing to support the application of the Consumers’ Coalition calling for Manitoba Hydro to participate in a public rate review process to take place before fall 2021. Such a review of Hydro is long overdue and would promote transparency and accountability for the crown corporation.
At Hydro’s last full rate hearing, which took place in 2018, Hydro requested a 7.9% rate increase that the PUB reduced to 3.6%. The reduced rate increase significantly benefited rate payers. At that time, Hydro did not file a long-term rate-setting forecast (IFF) because they were undertaking a ‘comprehensive review’ of their operations.
In the past few years there have been substantial changes in Hydro’s circumstances:
- In 2020, Bill 4 increased Hydro’s borrowing limit from $500 million to $1.5 billion;
- New infrastructure has been brought into service, including the Bipole III Transmission Line, the Manitoba-Minnesota Transmission Line, and the Keeyask Generating Station; and
- Hydro has recently made a 215MW export sale to SaskPower.
Yet, despite its growing scope, Hydro has not prepared an IFF or a detailed operating and maintenance budget since 2015 and admits it is ‘unable to finalize an Annual Business Plan for 2020-21.’ Additionally, with the proposed Bill 35, cabinet has the authority to impose hydroelectric rate increases at any level it wishes during the transitional period ending March 31, 2024, without an independent rate approval process of the PUB.
As ratepayers and citizens, Manitoba consumers need to know that the Corporation’s financial health and the consumer interest in affordable rates are being appropriately balanced. Consumers require an established, independent PUB process–a process that has served the public well in the past–to provide up-to-date information and determine whether they are paying the right rates for this essential monopoly service. Such a process would perform the following essential actions:
- determine whether current rates are just and reasonable and current costs are fairly allocated;
- address urgent unfinished business from Orders 69/18 and 59/18, including the treatment of the deferral fund set aside to protect future Hydro ratepayers from rate shock; and
- provide fundamentally important rate-setting information for the public record.
There are many stakeholders affected by Hydro’s management, and, as such, we should expect transparency from a crown corporation about their business operations and projects. We ask that the PUB order Manitoba Hydro to participate in a “status update” hearing before fall of 2021 to help ensure such transparency.
Yours sincerely,
Council of Canadians, Winnipeg Chapter