NDP hold back ‘wrong approach’ Hydro amendment

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This article was published 24/04/2022 (976 days ago), so information in it may no longer be current.

The Opposition is taking aim at the Tory government’s plan to cap Manitoba Hydro rates annually at five per cent, as the Crown corporation charges it was short changed by the Public Utilities Board.

NDP Leader Wab Kinew said his party will delay Bill 36 (Manitoba Hydro Amendment and Public Utilities Board Amendment Act), arguing the proposed legislation would not just cap electricity rates but guarantee annual increases of five per cent.

“It’s looking like this is going to be the start of five per cent increases at Hydro year after year,” Kinew said Monday.

“We think that’s the wrong approach, because not only is it going to hit you in the pocket book but it’s also going to make it more difficult for Manitoba Hydro to treat their workers fairly.”

The Opposition can choose up to five bills to hold over the summer break, delaying their passage into law before the house rises in June.

Under the proposed legislation, electricity rates would be set every three years and would be capped at the rate of inflation or five per cent, whichever is lower. The bill also allows for “retail supply of power” by entities other than Manitoba Hydro and sets aggressive capital targets the corporation must meet.

The legislation, which would come into effect in 2025 if passed into law, would save the cost of holding annual PUB hearings, provide certainty for Manitobans and respond to the corporation’s debt, the Tories have argued.

However, NDP MLA for St. James and Hydro critic Adrien Sala said the proposed legislation would take the rate-setting power away from the PUB and move it to the cabinet table.

Under Bill 36, the PUB would be required to take into account and “be guided by” directives issued to the corporation and revenue requirements for the rate period.

“The fact that they’ve capped it at five per cent is not a protection for Manitobans,” Sala said. “The reality is that is a huge rate increase for Manitobans and we haven’t seen that in this province, at least not in recent history.”

Sala said the legislation also opens the door to the privatization of Manitoba Hydro. “We know that this will create huge profit-making opportunities for private companies, and the question is: at whose expense?”

Liberal Leader Dougald Lamont said while the NDP are “fear mongering” when it comes to privatization, Bill 36 does pose a threat to the independence and strength of the PUB.

“It’s absolutely critical that when you have a monopoly like that you have independent oversight with teeth,” he said. “Otherwise, you get political manipulations that hurt Hydro and end up hurting Manitobans in the long run.”

Katrine Dilay, an attorney with the Public Interest Law Centre and a regular intervenor in rate application hearings, said the delay of Bill 36 is welcomed.

“Given the changes that are being proposed to the Manitoba Hydro act, our clients do appreciate the additional time for consideration both by the public and the legislature,” Dilay said, noting her clients, including the Consumers’ Association of Canada, are still developing an official position on the bill.

Meantime, Hydro has asked the PUB to reconsider its decision to approve a rate increase for 2021-22 at 3.6 per cent, after applying for an increase of five per cent in its interim rate application.

It argued in its latest submission the regulatory body failed to establish a rate of 3.6 per cent was the appropriate balance between customer interests and the fiscal health of the utility.

Dilay said the regulator had to make a decision based on the information presented in the application last fall, which did not include detailed financial information or a long-term forecast.

“From our clients’ perspective, Hydro’s position does not address case law from the Supreme Court regarding how to deal with interim rate applications and it just does not reflect the decision by the Public Utilities Board and the reasons that they gave for it,” Dilay said.

In question period Monday, Premier Heather Stefanson said Bill 36 will protect ratepayers and Manitoba Hydro — when pressed by Kinew to explain why Hydro asked the PUB to vary its decision.

“This is a sustainable approach to ensure that Manitoba Hydro remains in Manitoba, owned by Manitobans, not tripling the debt and putting that on the back of ratepayers,” Stefanson said.

Finance Minister Cameron Friesen was not available to take reporters’ questions Monday, according to his press secretary.

In a statement, Friesen, minister responsible for Manitoba Hydro, said he was disappointed to see the bill delayed.

“Manitobans won’t forget the NDP mismanagement of the Keeyask and Bipole III construction projects, how they hid the escalating costs from the public and circumvented approval processes,” Friesen said.

“Our government understands that Manitoba Hydro’s low energy rates to Manitobans is our advantage.”

The NDP also delayed Bill 13 (Social Services Appeal Board Amendment Act), Bill 14 (Drivers and Vehicles Amendment, Highway Traffic Amendment and Manitoba Public Insurance Corporation Amendment Act), Bill 24 (Real Property Valuation Board and Related Amendments Act) and Bill 22 (Environment Amendment Act).

danielle.dasilva@freepress.mb.ca