Winnipeg Free Press - PRINT EDITION
Covering legal costs PUB's idea: consultant
A New York consultant who blew the whistle on Manitoba Hydro says it was the provincial regulator's idea to have her legal bills covered at an upcoming hearing.
The woman, who can't be identified, said Tuesday that having taxpayers cover her legal costs is crucial if she is to appear before the Public Utilities Board defending her case that Manitoba Hydro was improperly calculating its financial risk.
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"It was actually the PUB that suggested I would get my legal costs covered," the woman said in an interview.
"It's for anything and everything. Hydro could sue me, could sue anybody. Here's an example: Let's say I'm proved right. It's all very likely that I am going to be proved right. What if they then sue me for that? I just want to be protected."
Public Utilities Board documents show that it could cost $300,000-$800,000 to cover all the bills associated with her appearance as an intervener at an upcoming PUB hearing into Manitoba's operations.
That money would go to lawyers, she said. Incidental consulting costs to her would be about $40,000.
"It's a big headache for me, basically," she said. "I need lawyers. The lawyers in New York want $400,000 and the lawyers in Canada $200,000. I'm not paying all this. It's ridiculous."
She said she won't be in Winnipeg Friday when the PUB holds a meeting to discuss intervener applications and procedural matters. The PUB sets power rates and holds hearings about Manitoba Hydro's operations.
"I might be on the phone, I don't know," she said.
In proceedings involving the PUB, the whistleblower has requested she be identified only as a N.Y. consultant for all matters.
The consultant said in documents filed to the PUB she wants intervener status to defend her work that found Hydro has lost more than $1 billion over the last five years and could even face bankruptcy and blackouts due to bad drought planning and export pricing.
"On the one hand, maybe I made all this up and this is just a big drama over nothing, right," she said. "But on the other hand, maybe I'm absolutely correct and they're (Manitoba Hydro) doing everything in their power to saddle me with legal bills and obstacles to make sure nobody talks to me about it."
The consultant is also embroiled in a civil suit launched by Hydro to force some public airing of her findings. Hydro has hired another consultant, KPMG, to scrutinize those findings, and Hydro wants to be allowed to release the KPMG report to outside investigators, regulators and possibly the public. The consultant can't be identified because of a court ban.
Republished from the Winnipeg Free Press print edition March 10, 2010 A9
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