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The board chair of Manitoba Hydro is suggesting that revenue from the province's carbon tax be used to offset rising energy costs.
 
The utility is proposing a 7.9 percent increase for the next few years as it deals with spiraling costs of a new generating station and transmission line.
 
Sanford Riley says that the revenue generated from the carbon tax would soften the blow to those most affected by rising costs.
 
This would include homes heated by electricity instead of gas, certain businesses, and northern communities.
 
A two-month hearing on the utility's proposed rate hike is set to begin next week.