Did you know Manitoba Hydro has announced plans to raise rates by 4 per cent each year over the next couple decades?

Think about that for a second. If you’re a typical Manitoban, and your pay cheque is only going up by 2 per cent or so each year, how can you afford your hydro bill to go up by 4 per cent every year?

Many people are going to have to make some cuts in the family budget, trimming back on things like going out for coffee with friends, Christmas gifts for the kids, etc.

Given the large, 4 per cent Hydro increases planned for the next couple decades one might think Hydro would have mentioned something in the $700,000 ad campaign it ran earlier this year. Sadly, they didn’t.

Make no mistake, Manitoba Hydro has largely served Manitobans well over the past several decades. Our electricity rates are pretty competitive compared to other jurisdictions and power outages, up until recently, haven’t been too common.

But its proud history and stable rates are in jeopardy.

Manitoba Hydro has proposed a risky plan to spend $34 billion; largely on building new dams in northern Manitoba. To put that in perspective, Manitoba’s provincial debt is about $30 billion. Thus, Hydro’s plan is enormous.

Just imagine if your spouse came home and suggested you double your mortgage? The hydro situation is similar.

After the new dams are built, Hydro hopes to sell a lot of the new power to the United States, but there are many signs the U.S. may not want to buy too much of our power. Thanks to a major natural gas find in North Dakota, the U.S. can produce cheap natural-gas-powered electricity rather than rely on power from Manitoba.

Thus, if Hydro builds new dams and U.S. customers don’t buy the power, guess who is on the hook paying for the full cost? Yes, Manitoba ratepayers. Under such a scenario you would see rate increases higher than 4 per cent each year.

And it’s not just the Canadian Taxpayers Federation urging the province to re-consider their plans.

Graham Lane, the government’s former top watchdog on hydro rates, has spoken out time and time again; even suggesting rates could triple if the plan stumbles.

Former NDP Premier Ed Schreyer and former Progressive Conservative Premier Gary Filmon have also expressed serious concerns about Hydro’s plan. It’s extremely rare for former premiers, from different parties, to speak out on the same issue, but they’re concerned about what could happen to your hydro bill.

You can also add former Manitoba Hydro CEO Len Bateman and former Manitoba Hydro Vice-President Will Tishinski to the list.

If you’re wondering what you can do, call your MLA and demand a truly independent and non-partisan expert review of Hydro’s plan before it proceeds. The government will tell you they’re doing such a review but they’re not – their process is stacked with NDP appointees; many of whom have no clue about the electricity industry.

One thing is clear; Hydro’s plan deserves a second look. Your wallet will thank you if you help secure such an expert review.

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