Evidence prepared by William Harper, Econalysis Consulting Services
Mr. Harper provides a review of several aspects of Manitoba Hydro's General Rate Application, which is unique in a number of ways:
i. The requested rates increases (7.9% in each of 2017/18 and 2018/19) are significantly higher than previously requested rate increases. Furthermore, the integrated financial forecast underpinning the 2-year request includes a “rate plan” that calls for continual rate increases of 7.9% through to 2021/22 followed by annual increases of 2%. In contrast the rate plans underpinning previous financial forecasts considered in Manitoba Hydro rate application proceeding called for rate increases in the order of 3.95% per annum out to roughly the end of the next decade.
ii. The Cost of Service Study filed with the Application incorporates the Board’s directions flowing from Order 164/16 regarding the principles and appropriate methodology to be used in such studies.
iii. The Application introduces alternative residential rate designs, a matter that has not been formally addressed for almost 10 years.