The Public Utilities Board already granted an interim 2 per cent increase in electricity rates for all customers. Now Hydro is seeking to have that interim order finalized and further increase electricity rates 2.5 per cent electricity effective Sept. 1, 2012, and another 3.5 per cent on April 1, 2013. Additionally Manitoba Hydro is applying for a 6.5 per cent increase in electricity rates for customers in four remote communities served by diesel generation.

Without the additional money, Hydro said it would see a net loss of $51 million in the next fiscal year and $58 million in 2013-14.

The proposed rate increases come as Hydro heads into a multi-year plan to build the controversial Bipole III transmission line and two new northern generating stations. Supplying more power to Wisconsin and Minnesota requires all three projects.

Increased revenues are required to support the ongoing reliability of electricity service to Manitobans," said Scott Thomson, Hydro's president and CEO, adding, "Manitoba consumers will continue to have electricity rates that are among the lowest in North America."

In Saskatchewan and Ontario users pay electricity rates that are more than 50 per cent higher than in Manitoba, while consumers in North Dakota and Minnesota pay rates 30 to 40 per cent higher.