Manitoba Premier Wab Kinew says a 2025 electricity rate freeze is achievable, despite another projected financial loss for state-owned Manitoba Hydro.

Kinew’s NDP government promised a one-year freeze during the last election campaign to help people cope with the rising cost of living.

That raised concerns with the Consumers Coalition, a group made up of three non-profit organizations, including the Manitoba branch of the Consumers Association of Canada.

The group says a freeze now could lead to larger rate increases in coming years.

Manitoba Hydro posted a net loss of $157 million last fiscal year and is expected to find itself in the red again after initially forecasting a surplus this year.

In an end-of-year interview, Kinew said he believed freezing interest rates for a year was the right way to go. The final decision will be made by the Public Utilities Board, the province’s energy regulator.

“The reason Manitoba Hydro is in our province, as a utility in particular, is to provide affordable rates,” Kinew said.

It was Hydro officials who told the government about the proposed freeze, Kinew said.

“We are confident that the (board) will approve this because we believe it is financially viable.”

A lawyer representing the consumer coalition said Manitoba Hydro needs more sustainable money.

“Rates that are too low today create too much risk that rates will be too high in the future,” said Chris Klassen, a lawyer with Legal Aid Manitoba’s Public Interest Legal Centre.

Manitoba Hydro has seen its debt triple over the past two decades as cost overruns have hit major projects. Credit rating agencies said the utility had a higher debt burden than its counterparts in other provinces.

Last year, dry weather reduced water flows for power generation and turned an expected profit into a loss of $157 million.

The government’s recent mid-year financial update indicates that expected profits for this fiscal year at Manitoba Hydro are expected to result in a loss of $164 million.

Crown utilities spokesman Peter Chura said a submission to the Public Utilities Board was still being prepared.

“While we are not seeking a rate increase in 2025, our (general rate requests) generally consider rates over multiple years,” Chura wrote in an email.

“The content of this request and any future pricing developments are still being developed, and ultimately the decision on pricing rests with the PUB.”

This report by The Canadian Press was first published Dec. 27, 2024.