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2011 08 23 
Page 1 of 1 
PUB/MH (DIESEL) I-1
Reference:   Application, section 1.0, Order 134/10, Directive 5 
a) 
Please elaborate on why MH is making this application at this time rather than 
implement a plan as proposed by the PUB in Order 134/10. 
ANSWER
: 
The elimination of the higher tail block rate for Residential customers is a step towards 
further  improving  service  in  the  diesel-served  communities  and  is  consistent  with the 
direction provided by the PUB in Order 134/10.  While other measures are being considered 
and will be advanced at the appropriate time, there is no reason to delay this rate relief to 
Residential customers.  Elimination of the tail block rate can be accomplished with minimal 
cost and minimal impacts on grid customers. 
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2011 08 23 
Page 1 of 1 
PUB/MH (DIESEL) I-1
Reference:   Application, section 1.0, Order 134/10, Directive 5 
b) 
Please elaborate on the other of “number of steps” that MH is being considering 
on improving electricity service in the diesel communities. 
ANSWER
: 
Manitoba Hydro will continue to work with the diesel communities to review other initiatives 
that will improve the comfort, efficiency and affordability of providing electrical service to 
Manitoba’s four remote diesel communities.  Manitoba Hydro will submit an application to 
the PUB in the event that any of the other initiatives are deemed to be viable and in the best 
interests of energy consumers in the diesel communities. 
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2011 08 23 
Page 1 of 1 
PUB/MH (DIESEL) I-2
Reference:   Application, section 1.0 
a)  
Please provide a copy of DCOSS11 referenced in MH’s current application. 
ANSWER
: 
A full DCOSS11 has not yet been prepared. The April 2010 application was based on the full 
cost rate determined in DCOSS10 with forecast consumption for 2010/11.  
As referenced in the application Manitoba Hydro plans to file an updated Diesel Cost of 
Service prior to the end of the year that will have updated rates based on more recent forecast 
data. 
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2011 08 23 
Page 1 of 1 
PUB/MH (DIESEL) I-3
Reference:   Application, section 1.0 
a)  
Please explain what MH means when it states that it will “absorb” the forecasted 
shortfall. Specifically, please confirm whether MH intends to apply Net Export 
Revenue against the shortfall or whether the shortfall will be offset against 
Residential Grid Customer revenue. 
ANSWER
: 
The projected shortfall is relatively insignificant (approximately $61,000) and will be offset 
against grid customer revenue.  The updated Diesel Cost of Service Study will reflect the 
total subsidies provided to the Diesel Zone through export revenue allocations, government 
surcharges and grid revenues. 
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2011 08 23 
Page 1 of 1 
PUB/MH (DIESEL) I-5
Reference:  Order 134/10 
a) 
Please confirm that the settlement agreement has been signed by all parties and 
file a copy of the executed settlement agreement with the PUB.  
ANSWER
On January 24, 2011 Manitoba Hydro received an email from MKO attaching pdf copies of 
the Settlement Agreement and related authorizing documents and on February 28, 2011 
Manitoba Hydro provided the PUB with the pdf copies of the Settlement Agreement as 
forwarded by MKO. To date, Manitoba Hydro has not received originals of the Settlement 
Agreement and related documents. 
On June 16, 2011, MKO advised Manitoba Hydro and INAC that MKO had received most of 
the  originals.  Missing  were  three  original  Band  Council  Resolutions  and  one  original 
Certificate of Independent Legal Advice. Manitoba Hydro was advised by MKO that these 
documents could not be located by either MKO or the First Nations.  
To remedy this situation, INAC has proposed that for each of the four documents, a sworn 
declaration by one of the signatories to the document attesting that either the fax copy or the 
PDF (depending upon the circumstances) is a true copy of the original document and that the 
document was signed on that particular date. Manitoba Hydro concurred with the proposed 
remedy and the parties are now awaiting action by MKO in this regard. 
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2011 08 23 
Page 1 of 1 
PUB/MH (DIESEL) I-7
Reference:   Application 
a)  
Please confirm that the current application would result in an approximate 
$61,000 reduction in revenue from Residential customers 
ANSWER
: 
Confirmed. 
2011 08 23 
Page 1 of 2 
PUB/MH (DIESEL) I-8
Reference:  Application 
a)  
Please file a chart that shows MH’s consumption increase projections caused by 
the proposed abolition of the Residential Tail Block Rate. Specifically, please 
advise: 
(i) 
whether MH expects the abolition of the Residential Tail Block Rate to 
cause  consumption increases  by households  currently using less  than 
2,000 kWh per month; 
ANSWER
: 
Manitoba Hydro does not expect the proposed removal of the tail rate to have a significant 
impact upon consumption.  
Residential customers in the diesel communities were upgraded from 15 amp service to 
60 amp service beginning in 1998. Residential customers were billed at grid rates for all 
kW.h consumed until April 2004 when the 2,000 kW.h/month threshold was introduced. As 
evidenced in the following chart, the introduction of the 2,000 kW.h/month threshold did not 
significantly impact customers’ average use.  Therefore, removing the 2,000 kW.h/month 
threshold is expected to have no significant impact. 
Fiscal Year 
Average Annual Use 
(kW.h/yr) 
% Change 
1992/93 
6,210 
7.7% 
1993/94 
6,361 
2.4% 
2011 08 23 
Page 2 of 2 
Fiscal Year 
Average Annual Use 
(kW.h/yr) 
% Change 
2006/07 
13,131 
3.9% 
2007/08 
12,881 
-1.9% 
2011 08 23 
Page 1 of 1 
PUB/MH (DIESEL) I-8
Reference:  Application 
a) 
Please file a chart that shows MH’s consumption increase projections caused by 
the proposed abolition of the Residential Tail Block Rate. Specifically, please 
advise: 
(ii)   what MH expects the average consumption increase to be for households 
currently consuming less than 2,000 kWh per month; 
ANSWER
: 
Please see Manitoba Hydro’s response to PUB/MH (DIESEL) I-8(a)(i). 
2011 08 23 
Page 1 of 1 
PUB/MH (DIESEL) I-8
Reference:  Application 
a) 
Please file a chart that shows MH’s consumption increase projections caused by 
the proposed abolition of the Residential Tail Block Rate. Specifically, please 
advise: 
(iii)  whether MH expects the abolition of the Residential Tail Block Rate to 
cause consumption increases by households currently using more than 
2,000 kWh per month; 
ANSWER
: 
Please see Manitoba Hydro’s response to PUB/MH (DIESEL) I-8(a)(i). 
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