The Public Utilities Board (PUB) has announced that it has approved the application of Centra Gas Manitoba Inc. (Centra) for a multi-year general revenue increase.
The PUB has issued its decision in Centra Gas Manitoba Inc.’s 2024/25 General Rate Application. The decision finalizes the 4.5% interim general revenue increase in place since November 1, 2024, and approves additional increases of 4.5% effective November 1, 2025, and 4.0% effective November 1, 2026. These multi-year increases are intended to help Centra achieve positive net income and mitigate further losses, safeguarding the utility’s long-term viability.
The approved increases apply only to Centra’s distribution costs, not the price of natural gas, which means the board expects the bill impacts to be less than the percentages described above. Natural gas remains the most economical heating choice in Manitoba. Centra will provide specific bill impact details in its compliance filings to be made later this year.
Centra only sought a general revenue increase for one year. However, the Board balanced Centra’s needs against the interests of ratepayers and concluded that a multi-year approval is in the public interest and necessary to return Centra to a sound financial footing. Centra’s losses increased significantly over recent years, culminating in a $34 million loss in 2023/24. The losses were largely caused by rising operating costs without adequate revenue increases. Without a multi-year approval, losses would continue. The PUB has previously approved higher-than-requested increases when necessary to prevent utility underfunding.
The board has also directed Centra to develop a strategic business plan targeted to the needs of the gas utility to ensure that the needs of Centra, and the energy needs of Manitobans, are adequately protected.
The board is an impartial tribunal and regulator, at arm’s length from government that acts in the public interest.
