3rd Session, 43rd Legislature

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Bill 39

THE MANITOBA HYDRO AMENDMENT AND TAX ADMINISTRATION AND MISCELLANEOUS TAXES AMENDMENT ACT

(Assented to                                         )

HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

PART 1
THE MANITOBA HYDRO ACT

C.C.S.M. c. H190 amended

1   The Manitoba Hydro Act is amended by this Part.

2   The following is added after subsection 39.1(2):

Exception

39.1(3)   Clauses (1)(b) and (2)(b) do not apply to grid customers who operate large power supply projects.

3   The following is added after section 39.1:

Definitions

39.1.1(1)   The following definitions apply in this section.

"cryptocurrency operation" means, subject to the regulations, an operation that uses electronic equipment dedicated to cryptographic calculations which, in particular, serve to validate successive transactions made by users of a blockchain. (« opération de cryptomonnaie »)

"data centre" means a facility, whether free-standing or within a larger structure, that

(a) primarily contains electronic equipment

(i) used to process, store or transmit digital information, or

(ii) used for digital information for a purpose specified in the regulations or in a manner set out in the regulations; and

(b) requires a large supply of power to operate as determined under section 49.2 and the regulations under that section.

For certainty, a facility that contains a cryptocurrency operation is not a data centre. (« centre de données »)

"large power supply project" means a project, other than a cryptocurrency operation or a data centre or two or more such related projects, for which the customer makes a request for service where the request

(a) is made in respect of a use of power for a purpose prescribed by regulation;

(b) is received on or after the day this section comes into force; and

(c) requires a large supply of power to operate as determined under section 49.2 and the regulations under that section. (« projet nécessitant une fourniture d'énergie en grande quantité »)

Separate classes for cryptocurrency operations, data centres and large power supply projects

39.1.1(2)   The corporation must establish and maintain a separate class for each of the following:

(a) customers who are engaged in cryptocurrency operations;

(b) customers who operate data centres;

(c) customers who operate large power supply projects.

Rates for cryptocurrency operations, data centres and large power supply projects

39.1.1(3)   It is hereby declared that the rates charged to the cryptocurrency operations class, data centre class and large power supply project class are to be equal to the rates charged under the most recent General Service rate schedules (as those rate schedules are approved by the regulator) for the applicable class unless the regulator approves a higher rate.

Meaning of "applicable class"

39.1.1(4)   For the purpose of subsection (3), the "applicable class" is determined on the basis of the customer's connection to the corporation's interconnected system for transmitting and distributing power in Manitoba.

4(1)   Section 39.6 is renumbered as subsection 39.6(1) and is amended by adding the following before clause (e):

(d.1) extending or limiting the meaning of "cryptocurrency operation";

(d.2) respecting purposes for and manners of dealing with digital information for the purpose of the definition "data centre" in subsection 39.1.1(1);

(d.3) respecting uses of power for the purpose of clause (a) of the definition "large power supply project" in subsection 39.1.1(1);

4(2)   The following is added as subsection 39.6(2):

Classes

39.6(2)   A regulation made under clause (1)(d.3) may establish classes in respect of the use of power and may deal with those classes differently.

5   The following is added after subsection 43(3):

Application — levy on large power supply projects

43(3.1)   For certainty, any revenue from the levy imposed under section 110.2 of The Tax Administration and Miscellaneous Taxes Act is considered to be the funds of the corporation and not funds of the government.

PART 2
THE TAX ADMINISTRATION AND MISCELLANEOUS TAXES ACT

C.C.S.M. c. T2 amended

6   The Tax Administration and Miscellaneous Taxes Act is amended by this Part.

7   The following is added as Part II.1:

PART II.1
ELECTRICITY — LEVY ON INTENSIVE USE

Definitions

110.1   The following definitions apply in this Part.

"cryptocurrency operation", "data centre" and "large power supply project" have the same meaning as in subsection 39.1.1(1) of The Manitoba Hydro Act. (« centre de données », « opération de cryptomonnaie » et « projet nécessitant une fourniture d'énergie en grande quantité »)

"monthly demand charge" means the portion of the monthly charge for electric service based upon the electric capacity (kVA) consumed and billed on the basis of the billing demand as set out in an applicable General Service rate schedule. (« prime de puissance mensuelle »)

"monthly energy charge" means the portion of the monthly charge for electric service based upon the electric energy (kWh) consumed and billed as set out in an applicable General Service rate schedule. (« frais d'énergie mensuels »)

"General Service rate schedules" means the most recent schedules of rates charged for the provision of power by Manitoba Hydro to non-residential customers as approved by the Public Utilities Board under section 39 of The Manitoba Hydro Act. (« barèmes des tarifs applicables à la catégorie service général »)

Imposition of levy

110.2(1)   A customer who operates a cryptocurrency operation, data centre or large power supply project must pay a levy at the following rate on the total monthly electricity charges for the operation, centre or project:

(a) the rate that is prescribed by regulation for

(i) cryptocurrency operations,

(ii) data centres, or

(iii) the class of the use of power that applies to the large power supply project as prescribed under clause 39.6(1)(d.3) of The Manitoba Hydro Act;

(b) if no rate is prescribed by regulation under subclause (a)(i), (ii) or (iii), the rate equal to the total of the following in respect of the General Service rate schedule that applies to an equivalent customer:

(i) 100% of the monthly energy charge per kWh,

(ii) 100% of the monthly demand charge per kVA.

Application — when customers are equivalent

110.2(2)   For the purpose of clause (1)(b), customers are equivalent if they are connected to the corporation's interconnected system for transmitting and distributing power in Manitoba in the same manner.

Levy applies to first full monthly bill

110.2(3)   A customer who operates a cryptocurrency operation, data centre or large power supply project who, on the day this section comes into force, is regularly billed in monthly intervals for power is not required to pay the levy in respect of the billing period that began before that day.

Billing and collecting levy

110.2(4)   When Manitoba Hydro bills the customer for power it supplies, Manitoba Hydro must also bill the customer the amount of the levy required under subsection (1) and collect that amount from the customer.

Unpaid levy

110.2(5)   The amount of a levy billed is a debt due by the customer to Manitoba Hydro and is subject to section 27 of The Manitoba Hydro Act.

Use of revenue

110.2(6)   The amount of the revenue from a levy that is collected by Manitoba Hydro is deemed to be revenue for the use of Manitoba Hydro and is to be placed in the fund maintained under subsection 37(2) of The Manitoba Hydro Act.

Regulations

110.2(7)   The Lieutenant Governor in Council may make regulations

(a) prescribing the rate or rates of the levy for the purpose of clause 110.2(1)(a);

(b) defining a word or expression used but not defined in this section;

(c) respecting any matter the Lieutenant Governor in Council considers necessary or advisable to carry out the purpose of this section.

Classes

110.2(8)   A regulation made under clause (7)(a) may establish classes in respect of cryptocurrency operations, data centres and large power supply projects and may prescribe different levy rates for different classes.

PART 3
COMING INTO FORCE

Coming into force

8   This Act comes into force on a day to be fixed by proclamation.