The Frontier Centre for Public Policy has just released the concept paper Financial Reorganization of Manitoba Hydro. This paper is authored by Graham Lane, a retired Chartered Accountant and former Chair of Manitoba’s Public Utilities Board. He has had a multifaceted career spanning 50 years in the public and private sectors of seven provinces as a executive and consultant. Graham Lane is a member of Frontier Centre for Public Policy Expert Advisory Panel.
This concept paper discusses potential financial solutions for Manitoba Hydro. The solutions seek better outcomes for the public interest.
The completion of BiPole III, Keeyask and the Manitoba-Minnesota transmission line, the losses incurred on the moth-balled Conawapa dam, and major system refurbishment requirements will come together while current and foreseeable future export sales of surplus electricity will not realize high enough prices to hold future domestic rates to ‘reasonable’ annual increases. The end result will be a ‘bail-out’ that the provincial government, domestic ratepayers will likely be called upon to shoulder, alone bringing ‘massive’ annual rate increases (well beyond the anticipated inflation rate).
This paper proposes two possible remedies to alleviate a situation that, without action, will damage Manitoba’s future economy and the current government’s political future.
To read this fascinating examination of public choice and proposed financial solutions, click here: FC203_FinOrgMBHydro_OC1017_F2