Manitoba Hydro granted 2% rate hike

Manitobans can blame a warm winter for a rate increase in their electricity bills.

The Public Utilities Board approved an interim two per cent rate hike for all Manitoba Hydrocustomers over the weekend. Theincrease kicked in on Sunday.

Hydro spokesman Glenn Schneider said the public utility needed the increase to balance the books and had actuallyapplied for a 3per centboost.

"Our financial situation is not healthy," Schneider told CBC News on Monday.

"I think that's becomewidely known that we're being affected by the warm winter, which has affected our revenues from energy use from our domestic customers."

Warmer than normaltemperatures during the winter and spring meant less people cranking up the heat.

Similarly, themild weather in other places impactedManitoba Hydro's powerexports.

Hydro says without such increases,the utility would likely post losses of $51 million in 2012/13 and $58 million in 2013/14.