Hydro rates are on the rise in Manitoba.

The Public Utilities Board has awarded Manitoba Hydro a 3.36 percent interim rate increase, effective August 1st.

As part of the utility's general rate application filed with the PUB in May of this year, Manitoba Hydro had requested an interim rate increase of 7.9 percent in August of this year and a further 7.9 percent increase in April.

President and Chief Executive Officer Kelvin Shepherd says Manitoba Hydro is concerned that the PUB has not taken quicker action to begin to address the serious financial challenges and risks facing Manitoba Hydro.

Shepherd says Manitoba Hydro needs additional revenue to fully fund its operations, including investing in the replacement and upgrading of its aging infrastructure. He says additional revenue would also help the utility withstand the risks of rising interest rates and drought.

"With our debt already having increased to sixteen billion dollars and scheduled to grow by another eight billion dollars over the next five years, it's imperative we increase our financial capacity to fund our ongoing operations, rebuild equity in our company, and have sufficient free cash flow to ensure that our debt is considered self-sustaining," explains Shepherd.