May 15, 2022

Winnipeg
4° C, Clear

Full Forecast

Contact Us Subscribe Manage Subscription Chat with us
Log in Create Free Account Help Chat with us
    • Contact Us
    • Advertising Contact
    • Submit a News Tip
    • Subscribe to Newsletters

    • Finding your
      information

    • My Account
    • Manage my Subscription
    • Change Password

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate

    • Log Out
    • Log in
    • Create Free Account
    • Help

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate
  • Coronavirus Coverage
  • Replica E-Edition
    • About the E-Edition
    • Winnipeg Free Press
    • Community Review East
    • Community Review West
  • Above the Fold
  • Front page
  • Arts & Life
    • All Arts & Life
    • The Arts
    • Autos
    • Books
    • Book Club
    • Cannabis
    • Celebrities
    • Diversions
    • Puzzles
    • Environment
    • Events
    • Faith
    • Food & Drink
    • Your Health
    • Life & Style
    • Movies
    • Music
    • Science & Technology
    • TV
    • Travel
  • Business
    • All Business
    • Agriculture
    • Personal Finance
    • Manitoba's Top Employers
  • Canada
  • Local
  • Opinion
    • All Opinion
    • Analysis
    • Columnists
    • Editorials
    • Editorial Cartoons
    • Letters to the Editor
    • Send a Letter to the Editor
  • Sports
    • All Sports
    • Amateur
    • Auto Racing
    • Blue Bombers
    • Curling
    • Football
    • Goldeyes
    • Golf
    • High School
    • Hockey
    • Horse Racing
    • Winnipeg Jets
    • Manitoba Moose
    • WHL
    • MLB
    • NBA
    • Olympics
    • Soccer
  • World
  • The Star
  • Reader BridgeNEW
  • WFP EventsNEW
  • About Us
    • About Us
    • Advertising
    • Contact Us
    • Carrier Positions & Retailer Requests
    • FP Newspapers Inc.
    • History
    • Internships
    • Job Opportunities
    • News Café
    • Privacy Policy
    • Retail Locations
    • Staff Biographies
    • Terms and Conditions
  • Archives
  • Free Press Community Review
    • All Free Press Community Review News
    • East Edition
    • West Edition
    • Sports
    • Events
    • Contact Us
    • E-Editions
  • Classifieds
  • Contests
  • Coupons
    • All Coupons
    • Staples Copy & Print Coupons
    • Ripley's Aquariums Coupons
    • The Bay Coupons
    • Staples Canada Coupons
    • Altitude Sports Coupons
    • Nike Coupons
    • Tuango Coupons
    • Ebay Canada Coupons
    • Sport Chek Coupons
    • Roots Coupons
  • LifestylesNEW
    • All Lifestyles
    • Business Hub
    • Community
    • Drink & Dine
    • Life
    • Wellness
    • Whiskers & Wings
    • Sponsored Articles
  • Homes
    • Property Listings
    • Featured News
    • Renovation and design
    • New homes
    • Resale homes
  • Newsletters
  • Obituaries
  • Puzzles
  • Photo and Book store
  • More

©2022 FP Newspaper Inc.

Close
  • Quick Links

    • Coronavirus Coverage
    • Federal Election
    • Above the Fold
    • Home
    • Local
    • Canada
    • World
    • Classifieds
    • Special Coverage
    • Newsletters
    • Obituaries
    • Photo and Book store
    • Archives
    • Contests
    • Publications
    • Sponsored Content
    • Privacy Policy

    Ways to support us

    • Pay it Forward program
    • Subscribe
    • Day Pass
    • Support Faith coverage
    • Support Arts coverage
  • Replica E-Edition

    • About the E-Edition
    • Winnipeg Free Press
    • Community Review East
    • Community Review West

    Business

    • All Business
    • Agriculture
    • Personal Finance
  • Arts & Life

    • All Arts & Life
    • The Arts
    • Autos
    • Books
    • Cannabis
    • Celebrities
    • Diversions
    • Puzzles
    • Environment
    • Events
    • Faith
    • Food & Drink
    • Your Health
    • Life & Style
    • Movies
    • Music
    • Science & Technology
    • TV
    • Travel
  • Sports

    • All Sports
    • Amateur
    • Auto Racing
    • Blue Bombers
    • Curling
    • Football
    • Goldeyes
    • Golf
    • High School
    • Hockey
    • Horse Racing
    • Winnipeg Jets
    • Manitoba Moose
    • WHL
    • MLB
    • NBA
    • Olympics
    • Soccer
  • Opinion

    • All Opinion
    • Analysis
    • Columnists
    • Editorials
    • Editorial Cartoons
    • Letters to the Editor
    • Send a Letter to the Editor

    Media

    • All Media
    • Photo Galleries
    • Videos

    Homes

    • Property Listings
    • Featured News
    • Renovation and design
    • New homes
    • Resale homes
  • Canstar Community News

    • All Free Press Community Review News
    • East Edition
    • West Edition
    • Sports
    • Events
    • Contact Us
    • E-Editions
  • Coupons

    • All Coupons
    • Staples Copy & Print Coupons
    • Ripley's Aquariums Coupons
    • The Bay Coupons
    • Staples Canada Coupons
    • Altitude Sports Coupons
    • Nike Coupons
    • Tuango Coupons
    • Ebay Canada Coupons
    • Sport Chek Coupons
    • Roots Coupons
  • About Us

    • About Us
    • Advertising
    • Contact Us
    • Carrier Positions & Retailer Requests
    • FP Newspapers Inc.
    • History
    • Internships
    • Job Opportunities
    • News Café
    • Privacy Policy
    • Retail Locations
    • Staff Biographies
    • Terms and Conditions
The Free Press
Articles Read
Your Balance +tax
Day Pass Till
Day Pass
    • Contact Us
    • Advertising Contact
    • Report an Error
    • Send a Letter to the Editor
    • Staff Biographies
    • Submit a News Tip
    • Subscribe to Newsletters

    • Finding your
      information

    • Log in
    • Create Account
    • Help
    • Chat with us

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate
    • My Account
    • Manage My Subscription
    • Change Password
    • Chat with us

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate

    • Log Out
Log in Create Account Contact Us
Contact Us Manage Subscription
  • Sections
  • Local
  • Arts & Life
    • All Arts & Life
    • The Arts
    • Autos
    • Books
    • Diversions
    • Environment
    • Faith
    • Food & Drink
    • Health
    • Movies
    • Music
    • TV
    • Travel
  • Business
    • All Business
    • Agriculture
    • Personal Finance
    • Manitoba's Top Employers
  • Sports
    • All Sports
    • Amateur
    • Blue Bombers
    • Curling
    • Football
    • Goldeyes
    • High School
    • Hockey
    • Winnipeg Jets
    • Manitoba Moose
    • WHL
    • MLB
    • NBA
    • Soccer
  • Opinion
    • All Opinion
    • Analysis
    • Columnists
    • Editorials
    • Editorial Cartoons
    • Letters to the Editor
    • Send a Letter to the Editor
  • E-Edition
  • Homes
  • Classifieds
    • All Classifieds
    • Announcements
    • Automotive
    • Careers
    • Garage Sales
    • Merchandise
    • Pets
    • Real Estate
    • Rentals
    • Services
  • Lifestyles
    • Business Hub
    • Community
    • Drink & Dine
    • Life
    • Manitoba’s Top Employers
    • Wellness
    • Whiskers & Wings
    • Sponsored Articles
  • Coupons
    • All Coupons
    • Staples Copy & Print
    • Ripley's Aquariums
    • The Bay
    • Staples Canada
    • Altitude Sports
    • Nike
    • Tuango
    • Ebay Canada
    • Sport Chek
    • Roots
  • Obituaries
  • Subscribe$1.50 for 5 months
Home Opinion Analysis

Advertisement

Advertise With Us

Market forces weighing on hydro exports

By:  Dennis Woodford  
Posted: 4:00 AM CDT Tuesday, Apr. 5, 2016

  • Tweet
  • Share
  • Print
  • Email
  • Save to Read Later

The provincial government likes to describe our hydroelectric resources as “Manitoba’s oil,” an export commodity that can return dividends from cross-border sales. That has pushed the early construction of hydroelectric plants that will produce power Manitobans won’t need until into the 2030s. We are not alone in this, B.C. Hydro is doing the same, with its Site C on the Peace River.

Hey there, time traveller!
This article was published 5/4/2016 (2231 days ago), so information in it may no longer be current.

Opinion

The provincial government likes to describe our hydroelectric resources as "Manitoba’s oil," an export commodity that can return dividends from cross-border sales. That has pushed the early construction of hydroelectric plants that will produce power Manitobans won’t need until into the 2030s. We are not alone in this, B.C. Hydro is doing the same, with its Site C on the Peace River.

But at what cost to ratepayers? Manitoba Hydro’s new Keeyask generating station will produce power at a cost of more than 12 cents per kilowatt-hour. Meanwhile, the average daytime spot-market price of electricity in our export target of Minnesota was recently posted at 2.05 cents per kwh.

Why is the Minnesota electricity spot market price so low? It competes on the market with natural gas, the price of which has been dropping steeply. The average futures price of natural gas last week was US$1.92 per million British thermal units; in 2006, it was more than US$7 per million BTU.

Winnipeg Gardener

What you need to know now about gardening in Winnipeg. A monthly email with advice, ideas and tips to keep your outdoor and indoor plants growing.

Sign up for Winnipeg Gardener
Sign Up

What do we do about this dilemma? Do we push on with Bipole III and Keeyask in anticipation that one year they might become economical? Or, rather, should we halt construction, do a detailed review, and determine whether to put the projects on hold on the possibility that the market will rebound some day?

Bloomberg Business on March 11 reported that in 2007, Canadian natural gas producers met 16 per cent of U.S. demand. In 2014, it had slipped to less than 10 per cent. Given that, it seems spot market electricity prices, affected by natural gas prices, will not increase significantly if at all over the next decade. The falling costs of wind, solar and energy storage will also play a significant role in keeping electricity prices from rising to where they would have to be for Keeyask and Bipole III to be cost effective, any time in the next decade or two.

Manitoba Hydro is working with Minnesota to build a new transmission line into the United States, but mainly with an eye to sell our power south. It may well be more profitable for Hydro ratepayers if it were used to import low-cost Minnesota electricity, so we could put off building Keeyask and Bipole III.

The premiers of Manitoba and B.C. have asserted that sending the hydroelectricity of their new plants into Alberta could replace a lot of the coal-fired power in that province, including to process Fort McMurray’s oilsands. But a Canadian Energy Research Institute report in January revealed that Alberta can replace its coal-fired generators with what’s called combined-cycle natural gas generators. They would emit half the carbon of the coal generators, at a cost of 5.7 cents/kwh. The same report noted hydroelectricity from Manitoba to Fort McMurray would be 12.4 cents/kwh, and Site C in B.C., at 14 cents/kwh. No wonder Alberta Premier Rachel Notley is not jumping to sign a deal with either province.

There is a new world confronting power producers and buyers, with alternatives emerging to compete with traditional sources of energy, small grids to transmit it and environmental pressures that could change the game. Manitoba Hydro and the provincial government should take a step back, halt the construction of Keeyask and Bipole III and ask for an independent review by experts and determine what’s best for Manitobans to keep their hydro rates low.

Dennis Woodford was a transmission planning engineer at Manitoba Hydro for 15 years and now is president of Electranix Corporation.

Advertisement

Advertise With Us

  • Report Error
  • Submit a Tip
  • Refund
  • The Free Press is certified by

The Winnipeg Free Press invites you to share your opinion on this story in a letter to the editor. A selection of letters to the editor are published daily.

To submit a letter:
• fill out the form on this page, or
• email letters@freepress.mb.ca, or
• mail Letters to the Editor, 1355 Mountain Avenue, Winnipeg, Manitoba, R2X 3B6.

Letters must include the writer’s full name, address, and a daytime phone number. Letters are edited for length and clarity.

Advertisement

Advertise With Us

Top