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TLDR:
The Manitoba government and the head of Manitoba Hydro, the province’s Crown energy corporation, are at odds over future energy generation and ways to reduce consumer demand. The government wants energy resources to be publicly owned and opposes the CEO’s plan for more private energy projects. The CEO suggested reaching out to independent producers for wind energy and exploring surge pricing or demand response options to reduce consumption at peak times. The Finance Minister did not directly respond to questions about the CEO’s position but expressed full confidence in the board of directors.
Key Points:
- The Manitoba government and Manitoba Hydro are at odds over future energy generation and consumer demand reduction.
- The government wants energy resources to be publicly owned and rejects the CEO’s plan for more private energy projects.
- The CEO suggested reaching out to independent producers for wind energy and exploring surge pricing or demand response options to reduce consumption at peak times.
- The Finance Minister expressed full confidence in the board of directors but did not directly respond to questions about the CEO’s position.
Finance minister rejects Manitoba Hydro CEO’s plan for more private energy projects
The Manitoba government and the head of Manitoba Hydro, the province’s Crown energy corporation, are at odds over future energy generation and ways to reduce consumer demand. The government wants energy resources to be publicly owned and opposes the CEO’s plan for more private energy projects. The CEO suggested reaching out to independent producers for wind energy and exploring surge pricing or demand response options to reduce consumption at peak times.
The rift began earlier this week when the CEO, Jay Grewal, told the Manitoba Chambers of Commerce that the province could need new energy generation as early as 2029 and would also look for ways to encourage people to curb consumption. The NDP government has since made it clear it is opposed to both those ideas. Finance Minister Adrien Sala, who is responsible for Manitoba Hydro, said, “As it relates to the development of new energy resources, we want those to be publicly generated.” The government is not interested in exploring surge pricing or demand response options either.
Sala did not directly respond when asked whether he has full confidence in Grewal and whether she will continue in her position. He would only discuss the board of directors and expressed full confidence in them to ensure that the province’s energy needs are met in a reliable and affordable manner with publicly owned resources. The Opposition Progressive Conservatives support Grewal’s plan, pointing out that Manitoba Hydro is deeply in debt and needs a clear plan to address energy needs.
The NDP government has not always been opposed to private energy generation. Under a previous NDP government more than a decade ago, Manitoba Hydro signed deals for wind farms involving private firms. However, the current government campaigned on keeping all aspects of Manitoba Hydro public, and shortly after winning the provincial election, it replaced most board members.
Manitoba Hydro is still dealing with the financial effects of its last major construction projects, which ran over budget. The utility is now planning to look for independent producers to meet future energy needs, citing the time and cost implications of building another generating station. The Finance Minister did not provide details about what kind of new generating options the province might consider.
Sala has promised to freeze electricity rates for consumers for one year, but did not set a timeline or indicate whether it would be done before the next election in 2027. The government will provide more information as it sees how things progress with Manitoba Hydro.
This article was written in February 2024 and is based on information available at that time.
