Officials from Manitoba Hydro were back before the Public Utilities Board last week asking for yet another rate increase. If this sounds like a familiar story, that’s because it’s become all too common.
In fact, over the past few years, the price every Manitoban pays for hydroelectric power has gone up by 16%. And last week, Manitoba Hydro was asking for another 6% increase to your rates.
This sharp increase in hydro rates is concerning for many reasons. The most troubling aspect is that during a time when the provincial economy is fragile and when many people are struggling to get by on either fixed or diminishing incomes, being asked to pay more every year for hydro is difficult. Also concerning is the fact that the advantage that access to affordable hydroelectric power gives Manitoba is being eroded with sharp annual increases.
Just as troubling however is the fact that Manitoba Hydro is offering little explanation for the rate increase or how many more increases can be expected in the future. As a public crown corporation, there is a degree of accountability and transparency expected by Manitobans. There should be a clear explanation why the rate increase is desirable and necessary.
The Public Utilities Board, which ultimately is given the power to approve or reject the rate increases, has also expressed frustration with its inability to get information out of Manitoba Hydro. It would like more information about Hydro’s ballooning debt. About the risk that exists at Hydro as a result of that debt and from potential future droughts. The fact that outside consultants have examined Hydro’s books and said there is far greater risk than is being publicly stated is very concerning.
Is the reason for the rate increase because the NDP government has forced Manitoba Hydro to build a new transmission line on the west side of the province at a cost of $640 million more than the much shorter eastern route that Hydro prefers? Is the reason for the increase because the downtown office tower that Manitoba Hydro built was millions of dollars over budget? Is the reason for the rate increase because the NDP government raided millions of dollars from Hydro over the past number of years?
Ultimately, it is difficult to know why the rate increase is necessary and how many more there will be because the NDP government refuses to ensure that Manitoba Hydro’s true financial picture is provided to the public. They just simply want you to pay more for your hydroelectric power and not ask any questions regarding past, current or future rate increases.
Manitoba Hydro provides power and light to our province. The NDP government shouldn’t be using the power of government to turn the lights off on transparency at this vital crown corporation. Before Manitobans are asked to once again pay more for hydro, somebody should explain why it is necessary.
