Winnipeg Free Press (Newspaper) - June 16, 2012, Winnipeg, Manitoba
C M Y K PAGE A4
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M ANITOBA Hydro is coming back
to Manitobans to ask for a second
rate increase this year - an
increase that will help offset sluggish
electricity sales to U. S. customers.
In its general rate application filed
with the Public Utilities Board on Friday,
the province's biggest Crown corporation
said it's facing a $ 79- million
shortfall in revenue, compared to the
$ 139 million in net income it earned
last year.
It wants the PUB to approve a rate
hike of 2.5 per cent effective Sept. 1
and a 3.5 per cent rate hike effective
April 1 to offset that shortfall.
If the PUB doesn't approve the increases,
Hydro warns its financial integrity
and future rate stability could
be threatened - despite net income
of $ 60 million projected for 2011- 12
increasing Hydro's retained earnings
to $ 2.4 billion, the highest level in the
Crown corporation's history.
" Manitoba Hydro does not believe
that it is acceptable to allow net income
to slip into a loss position and risk credit-
rating implications together with the
need for larger rate increases at a later
date," it said in its filing to the PUB.
Over at Manitoba Public Insurance,
it's a completely different story.
It filed its 2013- 14 insurance rate application
to the PUB on Friday, too, asking
for nothing.
" Overall, we're not looking for a
rate increase or a rate decrease," MPI
president and CEO Marilyn McLaren
said Friday. " We're looking for a lot of
stability, once again."
McLaren said based on current
trends, it appears rate stability will
continue into the future.
The only worry for MPI is the number
of hail claims made over the past
week in connection to last weekend's
storm. It's anticipated 2,500 damage
claims will be made.
" Hail is just a really big concern for
us these days," she said. " We have more
hail claims on a regular basis than we
ever had a decade ago. Changing weather
patterns are having a significant
impact. Years ago, we used to estimate
about $ 5 million of hail costs in an ordinary
year. Now it's over $ 20 million.
Last year, we had $ 30 million in hail
losses and not one big major storm."
At Hydro, besides declining power
sales to the U. S., there is plenty of
blame directed at the PUB for the need
to go to Manitobans, cap in hand.
Hydro spokesman Glenn Schneider
said PUB's decision last January to
roll back an interim 2.9 per cent rate
increase to 1.9 per cent hurt the corporation.
" The decision by the PUB left us
in a not- great situation, financially,"
Schneider said.
The other domino at play is the growing
costs of keeping the lights on -
maintaining some of Hydro's older generating
stations and power distribution
networks.
What's also hurt Hydro's exports, according
to the PUB, is the abundance
of cheap natural gas that's being extracted
in the U. S. Midwest.
However, Schneider said Hydro's current
financial situation and the soft U. S.
export market will not delay its plans
for the new $ 3.28- billion Bipole III
transmission line and the construction
of the $ 5.6- billion Keeyask and $ 5- billion
Conawapa generating stations.
" When we're looking at the big projects,
we're looking 10 to 15 years down
the road," he said. " You can't judge
them by the current conditions."
bruce. owen@ freepress. mb. ca
Hydro and MPI: two sides of the Crown's coin
By Bruce Owen
Reasoning behind the rate
What Manitoba Hydro wants from you:
1) An across- the- board 2.5 per cent rate
increase on current rates, effective Sept.
1, sufficient to generate additional revenue
to Hydro of $ 20 million in 2012- 13.
( If approved, the electricity bill for a typical
residential customer using an average
of 1,000 kilowatt- hours per month will
increase by $ 1.80 per month);
2) A further 3.5 per cent increase in
overall revenue effective April 1, 2013,
sufficient to generate additional revenue
of $ 48 million in 2013- 14.
Why? An earlier Public Utilities Board
order that denied Hydro a full 2.9 per cent
increase this year has taken money out of
Hydro's pocket, Hydro says. That's compounded
by the fragile state of the U. S.
economy and less demand for Hydro's
surplus power.
What Manitoba Public Insurance wants
from you:
Not much. It wants the Public Utilities
Board to sign off on its request for no
overall rate increase for 2013- 14.
How much you will pay in insurance is
based on your driving record, the kind of
vehicle you drive, what the vehicle is used
for and where you live.
If approved by the PUB, 430,531
vehicles ( 42.2 per cent) receive reductions
in their basic compulsory coverage
next year, while 23,154 vehicles ( 2.3 per
cent) will remain the same. A total of
556,522 policies ( 55.5 per cent) will be
increased - most increases will be less
than $ 50.
Why? Costs are stable. Fewer Manitobans
are injured in collisions and car
repair bills are kept inline with the use of
after- market parts.
I T'S been a comeback in the making. Almost
three years to be exact.
Come Sunday - when 19- year- old Carolyn
Wonneck steps up to the starting line to begin the
10- kilometre race in this year's Manitoba Marathon
- there will be two words running through
her mind.
" I'm back," Wonneck said in a recent interview
at her Fort Richmond home, which she shares with
parents Beth and Ron and her older brother, Paul.
" By running this race, it says I'm recovered, I'm
better now and that nothing's changed."
In July 2009, just three weeks after completing
the half marathon, Wonneck suffered a fall while
on a climbing wall at a summer camp where she
worked as a counsellor. The safety harness, which
was not properly attached, gave way, sending
Wonneck nine metres to the ground. The result
was two broken legs and a fractured right wrist. A
circulation problem in her right leg eventually led
to infection. Doctors decided the safest thing to do
was to amputate from the knee down.
" The accident made me realize how valuable
life can be," said Wonneck, who just completed
her second year of sciences at the University of
Manitoba. " I mean, not many people can say they
fell three storeys and survived with just an amputation.
" Through my accident, I've seen a lot of hope.
I've seen the pain and I've felt the pain, but I know
there's ways to get through it."
After the accident, Wonneck was given the difficult
task of learning how to walk again. The muscles
in her leg were badly damaged and had to go
through rigorous physiotherapy. She also knew the
getting her old strength back was not guaranteed.
" I think a lot of people do give up when something
like this happens to them," she said. " But
there's always hope and I just thought, ' There's
lots of people that go through this, so don't give
up, there's always a way.'"
That way came in part from a carbon- fibre artificial
leg she received from her doctor last winter.
The other part: Wonneck's motivation and strong
desire to prove she was back. Her hard work paid
off when she was able to run again.
" I've learned I can do anything I put my mind
to and I have put my mind to this," she said. "" I'm
going to be really excited [ come race time].
" Just being able to show myself and other people
that I've got a sweet leg and it doesn't make me
any better or any different than anyone else."
When asked if she plans to run in the race
again after completing the comeback, Wonneck
smiled, " Oh yeah, I want to see if I can do that
half again."
jeff. hamilton@ freepress. mb. ca
MORE MARATHON COVERAGE / C2
Marathon marks final mile
in journey toward recovery
By Jeff Hamilton
JOE BRYKSA / WINNIPEG FREE PRESS
Carolyn Wonneck will be running 10 kilometres at the Manitoba Marathon with a racing prosthetic.
A_ 04_ Jun- 16- 12_ FP_ 01. indd A4 6/ 15/ 12 10: 21: 28 PM
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