trending Market Intelligence /marketintelligence/en/news-insights/trending/HKusbuPOP9J8qM2e9RY7pQ2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Manitoba Hydro gets less than half of asked-for rate increase

Q2: U.S. Solar and Wind Power by the Numbers

Essential Energy Insights - September 17, 2020

Essential Energy Insights September 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August

Manitoba Hydro gets less than half of asked-for rate increase

Manitoba's utility regulator will allow Manitoba Hydro to raise rates to 3.36% on an interim basis effective Aug. 1, a hike that is less than half of what the province-owned power company sought.

All revenue from the increase will flow to an existing deferral account for the Bipole III transmission system and be used to temper future rate hikes when the network comes into service in 2018, the Manitoba Public Utilities Board said in its July 31 decision. Manitoba Hydro had sought a 7.9% increase this year and the same hike annually for five years in its May application. The board, known as the PUB, said it needed more information on the company's plan to halve the time it takes to change its capital structure to 25% equity.

"The utility's 2016 financial forecasts now seek to achieve that 25% equity level over a period of 10 years, with the first five of those 10 years embedding consecutive annual rate increases of 7.9%, followed by five consecutive years of 2.0% rate increases," the PUB said in its decision. "This contentious issue will be examined during the General Rate Application."

Manitoba Hydro has cut staff and sought rate increases in part to offset construction costs of the Bipole III high-voltage, direct-current transmission system which will carry power from the northern part of the province to the more-populous south and U.S. export markets and the Keeyask hydroelectric station. The projects, initiated by the province's previous socialist government, were reported to be plagued by budget overruns and other problems after the right-leaning Progressive Conservative party took control in a 2016 election. Keeyask's costs have jumped an estimated C$2.2 billion to C$8.7 billion and the project is 21 months behind schedule, while Bipole III's cost and in-service date have also been revised. Higher debt costs and slumping power prices for exports have tempered the company's revenue outlook.

"We are concerned that the PUB has not taken quicker action to begin to address the serious financial challenges and risks facing Manitoba Hydro," CEO Kelvin Shepherd said in a July 31 statement. "With our debt already having increased to [C]$16 billion and scheduled to grow by another [C]$8 billion over the next five years, it's imperative we increase our financial capacity to fund our ongoing operations, rebuild equity in our company, and have sufficient free cash flow to ensure that our debt is considered self-sustaining."

The PUB plans to review Manitoba Hydro's full rate application with public hearings that start in December.