Manitoba is asking the PUB for an immediate rate increase that will contribute to a trend where over the last 6 years of rate increases running 45% above inflation.
Desorcy also said consumers are paying for dam-building projects, Keeyask and Conawapa, that are years away from being built and are contingent on whether Manitoba Hydro can ink long-term export deals with Minnesota and Wisconsin.
“If they don’t sign those contracts, Hydro is not forecasting the need to build Keeyask in the next 20 years, but these things are already affecting rates,” she said.
I wonder if Manitoba Hydro and the PUB have considered an alternative to “forcing consumers” to invest in new dam construction?
In one perspective, consumers are being asked to enter into a long term price hedge instead of being exposed to variations in the spot price of electricity. Why not introduce a new rate plan that allows consumers to purchase power based on the spot price of electricity and thus not participate in the financing of the new dams and transmission lines?