Posted: 12/3/2018

https://www.winnipegfreepress.com/local/tories-ndp-point-fingers-as-hydro-applies-for-latest-rate-hike-501835392.html#have-your-say

Premier Brian Pallister says Manitoba Hydro's latest application to boost consumer electricity rates shows the seriousness of its financial predicament.

"The NDP dug an awful big hole for Hydro, and they're sure concerned, aren't they?" he said Monday of the Crown corporation.

On Friday, Manitoba Hydro filed an application with the Public Utilities Board for a 3.6 rate hike, effective April 1, after receiving a 3.5 per cent increase June 1.

"I am concerned... about the impact of higher hydro rates on Manitobans, obviously," Pallister told reporters after question period. The increase comes as interest rates continue to climb for consumers, he noted.

Pallister said it's important to point out Hydro's rate hike request will be heard by an independent, arm's-length process (through the PUB) designed to protect Manitobans.

Before receiving its 3.6 per cent increase this spring, the corporation had asked for a 7.9 per cent increase. It argued it would also need similar increases for another five years after that. However, on Friday, Hydro lowered its expectations in asking for roughly the same increase it got earlier in the year.

NDP Leader Wab Kinew blamed the latest rate request on Pallister and his government, saying they appear to have endorsed the utility's desire to pay off its large debt, which has soared due to recent dam and transmission line construction, faster than it needs to.

"You can imagine what would happen to your mortgage payment if you decided to pay it back within half the amount of time. Obviously, those payments would go up," Kinew said.

He said the Progressive Conservatives "continue to be cheerleaders for these rapid rate increases."

Liberal Leader Dougald Lamont also said the government could do more to keep hydro rates low.

Lamont renewed his argument the government is extracting too much money from Hydro in fees, which total in the hundreds of millions annually. He said the government is better able to take on debt than Hydro currently is.

If the government were to collect less money from Hydro — at least until it gets over a particularly bad hump in the next several years — the corporation will be on a sounder financial footing, Lamont said.

larry.kusch@freepress.mb.ca