NDP accused of interfering in Hydro’s affairs

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This article was published 01/02/2024 (614 days ago), so information in it may no longer be current.

The Opposition Progressive Conservatives are calling on the NDP government to get out of Manitoba Hydro’s way as it looks to the private sector for new sources of clean electricity.

On Thursday, PC Hydro critic Grant Jackson argued the government’s expectation for new electric generating facilities to be publicly owned amounts to interference in the Crown corporation’s affairs.

“They’re shutting the door based on their own ideology and they’re not allowing Hydro to do the due diligence to investigate these alternative sources of generation,” Jackson said in an interview.

Earlier this week, Hydro chief executive officer Jay Grewal told a crowd of provincial business leaders the utility will turn to private, independent power producers for new electricity sources, primarily wind farms, to meet increasing demand for emission-free energy.

Hydro would then ink purchase agreements with the companies to sell their power to the publicly owned grid, Grewal said.

Jackson said it took courage to publicize the plan, which was met with resistance from the NDP government because it wants new generating capacity to be publicly owned.

On Wednesday, Finance Minister Adrien Sala said the NDP-appointed board of directors is focused on ensuring new energy sources are public enterprises.

“(Grewal) knows there’s a new government, ultimately she knows her job could be on the line if the new government doesn’t like what she had to say,” said Jackson. “But she decided to go forward with her comments anyway, regardless of political party or ideology, because this is the right path to improve the overall health of Hydro.”

Sala’s office declined to comment on the PC response Thursday.

Jackson said the province shouldn’t ignore Hydro’s strategy to use private partners to meet Manitoba’s energy needs, arguing ratepayers should not be saddled with additional debt.

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Hydro’s debt sits at $24 billion and about 33 cents of each dollar Hydro customers spend goes toward the interest on that debt.

The province cannot afford another poorly mismanaged capital project, he said, referring to the Keeyask Generating Station, which together with the Bipole III transmission line, ran $3.7 billion over budget.

Involving the private sector in new power generation could also open up economic development opportunities for First Nations and other communities, Jackson argued.

“The last thing we need is the NDP interfering at Hydro and forcing more public debt on that corporation, which will only continue to increase the amount of interest payments that Manitobans are forced to pay and give Manitoba Hydro less buying power,” he said.

danielle.dasilva@freepress.mb.ca