Manitoba Hydro is planning to spend $33 billion during the next two decades on a host of new dams, power lines and converter stations. That's nearly three times the provincial government's annual budget. The details of Hydro's spending plans have come under intense scrutiny lately, which will culminate, likely before the end of the year, in a huge regulatory hearing on the future of Hydro. Among the criticisms? Hydro's inability to make accurate budget forecasts for big projects.
Here's a look at the financial state of Hydro's three marquee projects -- two northern dams and the controversial Bipole transmission line -- which have skyrocketed in price in five years.
-- Mary Agnes Welch
Cost est. in 2008 -- $2.25 billion
Cost est. in 2012 -- $3.28 billion
Increase -- 46%
WHY? -- Converter stations at either end of the power line increased dramatically in price. An independent review of Hydro's early cost forecast found the company had underestimated the cost of preparing the site for building.
Cost est. in 2008 -- $3.7 billion
Cost est. in 2012 -- $6.22 billion
Increase -- 68%
WHY? -- Manitoba Hydro says it learned from the cost overruns for the new Wuskwatim dam and upped the estimates for wages, materials and equipment costs. Hydro added a series of reserve funds to cover unexpected risks, such as lower labour productivity.
Cost est. in 2008 -- $4.98 billion
Cost est. in 2012 -- $10.19 billion
Increase -- 105%
WHY? -- Same as Keeyask. Hydro learned from Wuskwatim. Also, Conawapa's in-service date was postponed two years to 2026. That increased labour-cost estimates.
-- source: Public Utilities Board documents, Manitoba Hydro