Manitobans polled on electricity rate hike, different rates during the day

WINNIPEG — While the Manitoba government has promised to keep electricity rates low, the province’s energy Crown corporation is asking people for their thoughts on a rate hike for electricity and changes that could see different rates applied at different times of the day.

Manitoba Hydro has commissioned an opinion poll saying it’s faced with aging infrastructure and a growing demand for energy.

The poll covers a variety of topics and floats some options.

One question asks people how they would feel about paying an extra $9 a month, as an average residential customer, to maintain reliability, citing the need to spend money on infrastructure.

“Without investments to maintain or replace aging infrastructure, Manitoba’s electricity system is expected to decrease in reliability,” the survey reads.

“This would lead to more or longer power outages in coming years.”

Another question asks whether people might switch their use of large appliances to evenings or weekends, if it means saving money on monthly electrical bills.

Some other provinces already have such a system, often called time-of-use rates, where charges are higher during the day and lower at night. The aim is to reduce spikes in demand at peak times. The lower spikes can in turn delay the need to build more generating capacity.

The idea has been floated before and the NDP, while in Opposition in 2023, denounced it, saying it could lead to “surge pricing” with much higher rates at peak times.

Manitoba Hydro said the poll is simply taking the pulse of the public and does not outline any firm plans.

“We want to make sure we understand what’s important to our customers, because that’s an input into our long-term planning process,” said spokesperson Scott Powell.

“We always want to be open and see if people are amenable to … using (time-of-use rates) as a potential solution to help reduce electricity demand peaks,” Powell said.

As for a $9-per-month rate hike mentioned in the poll, Powell said it’s not currently on the table.

“It’s not reflective of any actual number that might be in a rate application, for example, but really designed to help determine what’s important to customers when it comes to costs versus reliability.”

Even if Manitoba Hydro was to seek such an increase, it would have to be approved by the Public Utilities Board, the provincial regulator, following public hearings, Powell added.

The utility has been hit with a number of financial challenges in the last two decades. It saw its debt triple in 15 years as it built two megaprojects — the Bipole III transmission line and the Keeyask generating station — which ran a combined $3.7 billion over budget.

More recently, expected annual surpluses have turned into losses, partly due to dry weather and reduced water levels.

The former chief executive officer, who was let go a year ago, also warned that new generating capacity could be needed as early as 2029.

The NDP government made a one-year rate freeze a key part of its election platform in 2023, and Manitoba Hydro confirmed it will seek no increase for 2025. It plans to file a multi-year rate application in the coming months and has not indicated what rate it will seek for 2026 as part of that request.

Finance Minister Adrien Sala, who is also the minister responsible for Manitoba Hydro, said in a statement that the government will rely on its long-term energy policy, released last September, which will “explore opt-in demand management and innovative, new options to keep (Manitobans’) energy bills low.”

This report by The Canadian Press was first published Feb. 9, 2025.

Steve Lambert, The Canadian Press