Hydro powers ahead for Manitobans' benefit

DEAR EDITOR,

In response to Al Myska's column of Jan. 28, It's time to push Manitoba Hydro's 'pause' button, I would like to provide the following response.

Our most recent forecasts indicate that Manitoba needs a new supply of electricity by 2019. We could meet this requirement in a number of ways but, after study, we propose to continue to take advantage of Manitoba's natural gifts of suitable hydroelectric sites to develop additional hydro generating stations.

Just as we have done in the past with projects such as Limestone, we intend to couple such development with export sales that help pay for the new station. We believe that this is the right approach, both from an environmental as well as economic point of view. In the upcoming independent review, we will provide a full justification for why this is the preferred development plan.

The proof that this approach has worked to the benefit of Manitobans is to simply compare the rates that Manitobans pay for electricity to other jurisdictions. Manitoba's rates remain the lowest in the country.

The time to proceed with new hydroelectric generation and transmission is now. One of our export customers, Minnesota Power, just recently announced it had received approval from its state regulator to proceed with its 250-megawatt purchase of electricity from Manitoba, starting in 2020. This demonstrates that our customers outside Manitoba still value the reliable carbon-free renewable electricity obtainable from Manitoba, even faced with a slow economy and competition from natural gas generation.

Generation of electricity by burning natural gas has been put forward by some as a preferred option for new generation. Natural gas prices have been volatile historically. While indications are that short-term natural gas prices will remain low, no one has a crystal ball that assures us that current prices will be sustained in the future.

In contrast, a hydroelectric generating station is a long-term asset (up to 100 years and beyond) with no fuel cost -- essentially an inflation-proof asset that will be available to provide power to our grandchildren's generation.

The Bipole III transmission project is needed to maintain the reliability of the Manitoba electrical system immediately and to carry the electricity provided by the new generating stations proposed for the north, Keeyask and Conawapa.

This project requires a full environmental review before the Clean Environment Commission, and funding will be provided to intervenors to assist them in their involvement in the review process.

We believe that we are on the right path with respect to Manitoba's electrical future, and we are prepared to provide details to support this resource plan that will continue to provide environmental and economic benefits to Manitobans in the years to come.

ROBERT B. BRENNAN

Manitoba Hydro

Winnipeg

Republished from the Winnipeg Free Press print edition February 1, 2012 A11