Public Utilities Board approves request for review into Manitoba Hydro's finances

Manitoba's Public Utilities Board has ordered a public review of Manitoba Hydro's financial state to determine whether its rates are reasonable and fair to customers.

A group called the Consumers Coalition submitted a request for the review to the Public Utilities Board back in March. As a result, the board orderedthe Crown corporation to hand over its financial information in order toevaluate if a hearing wasrequired.

The Public Utilities Board isthe third-party watchdog that approves electricity rates throughpublic hearings.There has not been a full public hearing into the utility's rates for three years.

The coalition argued that Manitoba Hydro's circumstances have changed substantially since then. In their request, they pointed out that since 2018, the Crown corporation has brought into service both the Manitoba-Minnesota transmission line and the Bipole III transmission line, the first unit of the Keeyask generating station, and confirmed a 30-year export sale with SaskPower.

On Tuesday, the board said it has approved the coalition's request.

"The PUB notes several changes and when taken collectively, including COVID-19 and drought impacts, constitute a substantial change in Manitoba Hydro's circumstances," the news release says.

The Consumers Coalition is made up of representatives from Harvest Manitoba, the Aboriginal Council of Winnipeg and Consumers' Association of Canada.

The coalition has also said it wants to have a public review before the provincial government passes legislation that would move to multi-year general rate applications before the Public Utilities Board.

Under the Progressive Conservative government's proposed Bill 35 titled the Public Utilities Ratepayer Protection and Regulatory Reform Act the Public Utilities Board would approve electricity rates in five-year intervals rather than annually. Any rate adjustments would be approved through government regulation.

For years, Manitoba Hydro rates were approved through a public hearing process held by the board, but the government has taken over that role in advance of the legislation passing.

That legislation was set to pass this spring but was blocked by the Opposition NDP, who argued the bill will weaken the Public Utilities Board and give the provincial government "carte blanche" to set utility rates without public input.

The second reading of the bill has been postponed until fall.