New Levy on Crypto and Data Centres

Summary#

This bill changes how Manitoba Hydro sets rates and charges for very power‑hungry businesses. It creates special customer groups for cryptocurrency mining, data centres, and other new large power projects, and adds a new levy (extra charge) on their electricity use. Money from the levy goes to Manitoba Hydro, not the provincial government.

Key changes:

• Defines three groups: cryptocurrency operations, data centres (non‑crypto facilities that process/store digital information and need a lot of power), and other new large power supply projects.
• Requires Manitoba Hydro to treat each group as its own customer class with separate rates.
• Sets their base rates equal to standard General Service rates unless the regulator approves higher rates for these classes.
• Adds a new monthly levy on electricity for these three groups; the government sets the levy rate by regulation.
• If no levy rate is set by regulation, the default levy equals 100% of the energy and demand portions of the bill (roughly doubling those parts of the charge).
• States all levy revenue is kept by Manitoba Hydro.

What it means for you#

• Residents and small businesses

  • No change to residential rates in this bill.
  • Most small and mid‑size businesses are unaffected unless they run a power‑hungry data centre or crypto mine.

• Cryptocurrency operations

  • Will be in their own rate class.
  • Will pay a new levy on monthly electricity bills. If no special levy rate is set, the levy matches the full energy and demand charges on the bill (so those parts of the bill are roughly doubled).
  • May face higher electricity rates than standard business customers if approved by the regulator.

• Data centres

  • Will be in their own rate class (crypto mines are not considered data centres under this law).
  • Must need a large supply of power to be treated as a “data centre” under this bill.
  • Will pay the new levy and could face higher rates if the regulator approves them.

• Other large power supply projects

  • Applies to big new power users in industries named later by regulation; only for service requests made after the law takes effect.
  • Will be in their own rate class, pay the levy, and could face higher rates than standard business customers if approved.

• Existing affected customers

  • The levy starts with the first full monthly bill after the law takes effect. There is no long grace period.

• Manitoba Hydro customers overall

  • Levy money goes to Manitoba Hydro, which could help cover the extra costs of serving very power‑intensive users and reduce pressure on other customers’ rates.

• Timing

  • The law takes effect on a date set by the government (by proclamation).

Expenses#

Estimated impact: No publicly available information.

• The bill directs all levy revenue to Manitoba Hydro rather than the provincial government.

Proponents' View#

• Makes very power‑intensive users pay more of the costs they create on the grid, which can help keep rates fair for homes and small businesses.
• Protects the power system by discouraging sudden growth in high‑demand loads that can strain infrastructure.
• Creates clear, separate classes for crypto mines, data centres, and other large projects, allowing the regulator to set rates that reflect their true costs.
• Keeps levy funds within Manitoba Hydro to support system upgrades, maintenance, and debt management.
• Clarifies that crypto mines are not data centres, targeting the policy to specific activities.

Opponents' View#

• The default levy could roughly double the energy and demand portions of the electricity bill for affected customers if no special rate is set, making Manitoba less attractive for investment.
• Treats select industries differently, which some see as unfair or as the government “picking winners and losers.”
• Business uncertainty: levy rates and which industries count as “large power supply projects” will be set by regulation and could change.
• Could deter data centre and crypto projects, along with related jobs and local spending, especially in rural areas.
• If large projects go elsewhere, Manitoba Hydro could miss out on potential sales that might have helped spread fixed system costs.