Manitoba Keewatinowi Okimakanak (MKO) Inc. feels let down by Manitoba Hydro, which will jolt hydro rates by 6.5 per cent for many First Nations customers living on reserve starting Sept. 1.
This will equate to a monthly raise of about $15 for the household hydro bill of people living in most First Nations communities under MKO.
“Increasing rates for hydro amidst a pandemic is unacceptable. I am concerned the increase may end up being even more than $15 a month given the fact that people are being told to stay home and maintain physical distance in response to the pandemic,” said MKO Grand Chief Garrison Settee in a press release. “Any increase will be a difficult burden for First Nations citizens. We absolutely do not want people to have to choose between purchasing food or turning the heat on in their homes.”
The Public Utilities Board (PUB) directed Manitoba Hydro to create a First Nations On-Reserve Residential (FNORR) customer class as well as to freeze the hydro rates charged to this customer class in 2018. Manitoba Hydro appealed this direction to the Manitoba Court of Appeal. In June, the court ruled against the creation of a FNORR customer class.
Subsequent to the court’s decision, Manitoba Hydro filed a letter with the PUB stating that Manitoba Hydro planned to implement the court’s decision by raising the rates charged to customers formerly in the FNORR. The PUB then held a brief written process. On Aug. 12, the PUB issued the Board Order 100-20.
“We are pleased that the board order states that Hydro cannot increase the rates for people living in the First Nations reliant on diesel power without a diesel-specific rate application and a cost of service study. This is one of the things MKO called for, and it is a direct result of our having advocated for this outcome in this process and the previous Hydro rate application,” said Settee.
“The government of Manitoba must address these issues. I urge the province to develop a program to address energy poverty issues for residents living in Northern Manitoba.”
A spokesperson for the Crown corporation told the Winnipeg Sun that the province is currently reviewing the PUB order and decisions have yet to be made regarding their next steps.
“We acknowledge the concerns of increased electricity costs for many on-reserve customers. The order by the PUB brings electricity rates in line with provincial legislation which ensures all residential customers across the province, no matter where they live, pay the same rate for their energy that is required under uniform rates legislation and the Manitoba Hydro Act,” said Bruce Owen, Manitoba Hydro media relations officer.
“Prior to 2002, this was not the case. At that time, Manitoba Hydro had several residential rate classes which varied according to the cost to serve customers. Customers in urban centres paid lower rates as opposed to customers living in less densely populated areas, including many reserves. The provincial government of the day enacted uniform rates legislation and moved all customers to the lower urban rate regardless of the cost to serve, and directed Manitoba Hydro to charge the same rate regardless of where an individual lives in the province. That legislation has not changed.”
Currently, Manitobans have some of the lowest electricity rates in Canada. Owen noted that Manitoba Hydro is committed to maintaining that advantage in affordability as much as possible.
Nicole Wong covers northern and Indigenous issues for the Winnipeg Sun under the Local Journalism Initiative, a federally funded program that supports the creation of original civic journalism.
