Manitoba Hydro customers started 2026 with a 4.0% electricity rate increase, approved on an interim basis by Manitoba's Public Utilities Board. According to Manitoba Hydro's regulatory filings page, the Board issued Order 161/25 on December 30, 2025, approving the increase effective January 1, 2026. A follow-up, Order 1/26 on January 5, 2026, approved the rate schedules that carry it out.
What was approved
The short answer: 4.0% from January 1, 2026, interim, and half a point above the request.
Manitoba Hydro filed its General Rate Application for fiscal 2026 to 2028 on March 28, 2025. It asked for three increases averaging 3.5% each, effective January 1 of 2026, 2027 and 2028. Order 161/25 approved a general rate increase of 4.0% for the first of those dates, on an interim basis, which is higher than the 3.5% the utility itself requested.
Interim approval means the rate is in effect while the regulatory process continues and can be confirmed or adjusted later. The page we reviewed did not list a final order.
The filing in steps
The short answer: a nine-month process from application to the January 1 rate change.
| Step | Date |
|---|---|
| General Rate Application filed | March 28, 2025 |
| Responses to Round I information requests | July 10, 2025 |
| Responses to Round II information requests | August 27, 2025 |
| PUB Order 161/25 (4.0% interim) | December 30, 2025 |
| PUB Order 1/26 (rate schedules) | January 5, 2026 |
| Increase takes effect | January 1, 2026 |
Manitoba Hydro's own bill estimates
The short answer: for an electrically heated home, the 3.5% request alone was worth about $7 a month.
Manitoba Hydro's application estimated these monthly impacts of its 3.5% requests:
| Residential customer | After Jan. 1, 2026 | Added after Jan. 1, 2027 | Added after Jan. 1, 2028 |
|---|---|---|---|
| No electric heat, 1,000 kWh/month | about $3.70 | about $3.80 | about $3.95 |
| Electric heat, 2,000 kWh/month | about $7.05 | about $7.30 | about $7.55 |
These figures were calculated for the requested 3.5%, not the approved 4.0%. As a rough scaling only (our arithmetic, not a Manitoba Hydro figure), 4.0% on the same electric-heat bill would be a little over $8 a month.
Analysis: what this means for heating contractors
This section is HeatingNews.ca analysis, not part of the Board's order or Manitoba Hydro's filing.
Manitoba's heating market is split between natural gas, the primary heating energy for 52% of households in Statistics Canada's 2023 survey, and electricity, at 33%. Electrically heated homes carry the largest share of any electricity increase, because winter heating can double their consumption.
That creates a clear opportunity for honest efficiency selling:
- Baseboard and electric furnace homes. A cold-climate heat pump can cut electricity used for heating, and Efficiency Manitoba's air source heat pump rebate was listed at $2,000 for centrally ducted and $1,500 for ductless systems when we checked in October 2026. Confirm current terms with Efficiency Manitoba before quoting them.
- Gas-heated homes. For most of them, an electricity increase changes little about heating costs. Do not stretch it into a replacement argument.
- Explain interim rates plainly. Homeowners hear "4%" and assume it is final. A short explainer that names the order and its status earns trust. That is the purpose of our rate-change explainer pages.
More detail on Manitoba's programs and regulators is on our Manitoba page.
Why interim approval matters to buyers
The short answer: an interim rate is real money on today's bill, but the regulatory story is not over.
Regulators use interim orders when a decision cannot be completed before a rate is due to change. The utility starts charging the interim rate, and the regulator can later confirm it, change it, or order a refund or further adjustment. For a homeowner, the practical effect in January 2026 was the same as a final increase: a higher bill in the coldest month of the year.
For a contractor, the distinction matters only in how you describe it. Saying "Manitoba Hydro rates went up 4% in January, on an interim basis approved by the Public Utilities Board" is accurate. Saying "rates are going up 4% a year" is not supported by the orders we reviewed, because the 2027 and 2028 steps were requested at 3.5% and their outcome is a separate question. Precise wording costs nothing and protects your credibility with customers who follow the news.
What to watch next
Watch the Public Utilities Board for any final order on the 2026 increase and decisions on the 2027 and 2028 steps. For a comparison with other provinces, read our reports on Hydro-Québec's three-year rate decision and NB Power's 2026/27 increase, or browse the newsroom.
Frequently asked questions
How much did Manitoba Hydro rates rise on January 1, 2026?
The Public Utilities Board approved a 4.0% general rate increase effective January 1, 2026, on an interim basis, in Order 161/25 issued December 30, 2025.
What did Manitoba Hydro ask for?
Its application, filed March 28, 2025, sought increases averaging 3.5% on January 1 of 2026, 2027 and 2028.
What did Manitoba Hydro estimate the requested increase would cost an electrically heated home?
Manitoba Hydro estimated about $7.05 more per month after January 1, 2026 for a home with electric heat using 2,000 kWh a month, based on its 3.5% request. The approved interim increase was higher than that request.
Are the 2027 and 2028 increases decided?
The regulatory page we reviewed listed only the interim 2026 orders. Check the Public Utilities Board for any later order on the 2027 and 2028 steps.