Winnipeg Free Press - PRINT EDITION

Manitobans kept in dark on Hydro plans: Tories

The Tories and NDP locked horns Monday over the risks and benefits of hydro dam expansion in what was likely a preview of the looming fall sitting of the Manitoba legislature.

Progressive Conservative Leader Brian Pallister accused the Selinger government of "keeping Manitobans in the dark" about the potential economic pitfalls of its $18-billion construction plan for Manitoba Hydro.

At a news conference, Pallister demanded the government launch a joint economic and environmental review of a package of projects that includes the Bipole III transmission line and two proposed generating stations -- Keeyask and Conawapa.

Clean Environment Commission hearings for the transmission line begin next month. The two dams are projected to come into service in the next dozen years or so.

"It's vital that these projects be dealt with in a transparent and open manner," Pallister said.

Manitoba Hydro lost $24 million in the first three months of its operating year, the Crown corporation recently reported. It blamed the loss on lower revenues from "spot market" prices for electricity outside of Manitoba and higher operating costs. The Public Utilities Board granted Hydro an interim rate increase of 2.5 per cent effective Sept. 1, citing concerns about Hydro's finances.

Dave Chomiak, the minister responsible for Manitoba Hydro, said he is confident the long-term market for electricity will be strong.

"We know that the cost of energy is only going to go up. We know that energy is going to be necessary in the future."

The government has already vowed to hold separate economic studies of the Keeyask and Conawapa dam projects, Chomiak said.

There will not be a "Needs For and Alternatives To" review, as they're called, for the transmission line.

Hydro spokesman Glenn Schneider said the corporation has never had to justify the economics of building a transmission line.

"The utility has been trusted to define the need for that," he said Monday.

larry.kusch@freepress.mb.ca

Republished from the Winnipeg Free Press print edition September 18, 2012 B2

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