| Diesel-Serviced Communities Pay Too Much | 21 January 05 |
 In December 2004 the power rates paid by four remote First Nations serviced by diesel generators were reduced, but serious issues remain. The reduction follows a much larger increase in rates eight months earlier. That increase was designed to make electric space heating prohibitively expensive. The communities: Brochet, Lac Brochet, Tadoule Lake and Shamattawa, have a combined population of about 2000. Residential customers in the communities now pay the same as other Manitoba customers for their first 2000 kW.h per month. Beyond that amount they pay 36.13¢/kW.h compared with 5.496¢/kW.h elsewhere in the province. The average usage for a Manitoba home without electric heat is well below 2000 kW.h/month. Earlier last year (April 1) the price for energy above the 2000 kW.h cutoff was raised from 5.16¢ to 79.1¢/kW.h in the communities. Manitoba Hydro said the increase was designed to discourage electric space heating. This ban on space heating proved difficult to enforce. The December "reduction" changed the 79.1¢ to 36.13¢, retroactive to May 1, 2004. After the increase and reduction, residents of the communities pay seven times more for energy above 2000 kW.h per month now than they did one year ago. Non-residential customers in the communities now pay the same as other Manitoba customers for power up to 2000 kW.h and 36.13¢ for additional energy. View the Manitoba Hydro release on the rate reduction View the Public Utilities Board decision regarding diesel rates (PDF) View the May 26, 2004 MKO (northern chiefs) news release Source: Manitoba Hydro, Manitoba Public Utilities Board |
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