Manitoba Hydro applies for interim 3.95% rate hike in 2016

Manitoba Hydro has filed a second application to get a 3.95 per cent rate hike approved for next year, after having a 3.95 per cent hike approved for this year.

In January, the company announced it wanted to increase rates by 3.95 per cent this year and next. Before those hikes could be applied, though, the province's Public Utilities Board had to approve them.

In May, Hydro made its case before the before the board to hike rates as part of a "general rate application."

At the time, the Consumers' Association of Canada told the PUB they opposed the rate increase because it amounted to a 10 per cent increase over the past three years — putting a burden on low-income users.

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Officials with Hydro said the hike was necessary to cover borrowing costs for projects such as the Keeyask Generating Station.

That rate hike was approved in July and took effect in August.

Now, the company has submitted a "supplemental" application to the PUB for an interim rate increase of 3.95 per cent, to start on April 1, 2016.

The request was filed on Nov. 18 and is subject to approval from the PUB.