Hydro boss fired as Crown utility seeks ‘fresh perspective’ By: Danielle Da Silva Posted: 10:06 AM CST Tuesday, Feb. 13, 2024 Last Modified: 5:58 PM CST Tuesday, Feb. 13, 2024 Updates

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Manitoba Hydro’s board of directors has ousted the utility’s CEO on the heels of her public rift with the NDP government over ownership of new power generating infrastructure.

Jay Grewal was dismissed as the Crown corporation’s president and chief executive officer on Tuesday morning, board chairman Ben Graham said.

Grewal had led the Crown corporation for just over five years after being appointed in 2019 by the Progressive Conservatives, who were in power at the time.

“She’s done a lot for this organization,” Graham said. “We just felt, as a board, it was the right time to make a change and bring a fresh perspective.”

Graham said the Hydro board assessed the executive team’s alignment with its mandate shortly after the NDP government replaced all but one of the utility’s directors on Dec. 4.

The review examined Hydro leadership’s alignment with the government’s direction to keep rates low, collaborate with Indigenous communities, support its workers and keep the utility public.

Graham insisted a public disagreement between Grewal and NDP Finance Minister Adrien Sala did not factor into the timing of the CEO’s dismissal.

Grewal suggested in a speech to business leaders in late January that Hydro would go to the market to find private-sector partners to add wind and solar generation capacity, which may need to be online by 2030, to meet increasing demand.

Sala, the minister responsible for Hydro, pulled the plug on her plans just one day later, stating the NDP government expects new generating assets to be publicly owned.

The decision to fire Grewal was made by the board, Sala said, when asked about the timing. He thanked Grewal for leading the utility through significant challenges, including two droughts, a severe snowstorm and the COVID-19 pandemic.

“We thank Ms. Grewal for her service to the province, for her professionalism and we wish her the best of luck in the next stage of her career,” he said.

Grewal earned more than $515,000 in 2022 and was the highest-paid executive at Manitoba’s Crown corporations that year. Under her contract, she’s entitled to compensation in the event she is terminated without cause, as is the case, Graham confirmed.

Hydro refused to disclose the value of Grewal’s severance package on Tuesday.

Hal Turner, Hydro’s vice-president of asset planning and delivery, has assumed the CEO’s duties on an interim basis as the search for a new leader begins. Consulting firm MNP has been hired to help recruit a new CEO.

“I’m hopeful that there’s a strong internal candidate that rises to the top, but we are going to do a national search, and ultimately it’s the best person for the job,” Graham said. “If it’s someone external to the organization, great. If it’s someone internal, even better.”

Veteran political observer Paul Thomas said Crown corporation CEOs — who are cabinet appointees and serve at the pleasure of the government — can often withstand a change in power, so long as they work with their board — at least in public.

“The board and the CEO have to have a constructive working partnership based on mutual respect, trust and confidence, and if that was lacking, then the situation could become dysfunctional,” said Thomas, a professor emeritus of political studies at the University of Manitoba.

The NDP government has mandated Hydro’s board chart a path to achieve a net-zero energy grid by 2035 — something Grewal had described as not feasible.

It has also asked the board to steer clear of new natural gas plants, which figure prominently in Hydro’s 20-year integrated resource plan, which was released in July and developed under Grewal’s tenure. The plans calls for partnerships with independent power producers.

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Hydro has also floated time-of-use rates (which the NDP opposes) and two per cent annual rate increases over 19 years to meet debt reduction targets, contrary to the NDP’s promise of a one-year rate freeze.

Publicizing plans to pursue private-sector power generation may have been the “straw that broke the camel’s back,” Thomas said.

“It’s this confluence of events that’s led to her getting into trouble,” he said.

The new CEO will be expected to go back to the drawing board for a medium- to long-range strategic plan that reflects the NDP government’s priorities, Thomas said.

“This will take everybody on board thinking along the same trajectory, the same path, to redefine the role of Hydro as we go farther into the 21st century,” he said.

“This will take everybody on board thinking along the same trajectory, the same path, to redefine the role of Hydro as we go farther into the 21st century”–Political observer Paul Thomas

Sala declined to comment on approaches to meeting energy demand — saying those are decisions that will be made by the board and a future CEO — and he did not answer directly, when asked, whether Hydro is expected to make changes to its current resource plan.

“We are a new government and we want to ensure that Hydro’s direction reflects the mandate that was outlined for (it) in our mandate letter,” he said.

PC Hydro critic Grant Jackson said Grewal’s dismissal is disappointing and leaves the utility without a clear path to meet urgent energy needs.

“Once again the NDP has imploded a plan that had significant amounts of public consultation with ratepayers, with experts in the field, with First Nations,” Jackson said, referring to the former PC government’s energy strategy and Hydro’s integrated resource plan.

“Where are we going and how are they going to afford to build more generating capacity in this province without considering (private) partnerships?” Jackson said.

The Assembly of Manitoba Chiefs applauded the decision to dismiss Grewal, saying there has been a “prolonged period of disconnection” with First Nations leadership. It also asked for a role in the selection of a new CEO.

“We look forward to finally re-establishing a working relationship that includes engaging constructively with Manitoba Hydro’s leadership”–Grand Chief Cathy Merrick

“The relationship between Manitoba Hydro and First Nations must be based on mutual respect, meaningful consultation, and collaboration,” Grand Chief Cathy Merrick said in a statement. “We look forward to finally re-establishing a working relationship that includes engaging constructively with Manitoba Hydro’s leadership to ensure that the concerns and priorities of First Nations are addressed effectively.”

Since taking office in October, the NDP has also replaced the board of directors at both Manitoba Liquor and Lotteries and Manitoba Public Insurance, with the latter appointing Satvir Jatana as the new CEO last week.

Thomas said Grewal should have no issue landing on her feet given her professional credentials.

She was the first woman to lead the utility in its history and has decades of experience, including in senior positions at Northwest Territories Power Corp., Capstone Mining Corp., BC Hydro, and CIBC World Markets.

“To get to the top of the ladder in any major industry, including in the public sector, you have to be smarter than most of the gentlemen in the room,” he said.

danielle.dasilva@freepress.mb.ca