Hydro’s plans risky: PUB
Utility's watchdog requests further review of projects
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Hey there, time traveller!
This article was published 18/01/2012 (5251 days ago), so information in it may no longer be current.
Manitoba’s Public Utilities Board wants the Selinger government to order yet another independent review into Manitoba Hydro’s plan to build two new northern dams and perhaps even the Bipole III line.
The utility’s watchdog released its long-awaited decision into Hydro’s most recent rate application on Tuesday — a mega-hearing that already saw an in-depth analysis of Hydro’s risk as it plans to spend $20 billion over the next decade on Bipole III and the Keeyask and Conawapa dams to meet growing domestic and export demands.
But the PUB said its own review didn’t go far enough and it wants another one.
“Manitoba Hydro’s business plan of ‘building for exports’ contains serious, real and significant risks and costs for domestic Manitoba customers,” the PUB said in its 232-page order.
The opposition Progressive Conservatives saw value in the PUB’s words and said an independent review should include a non-partisan review of Bipole III’s western route versus the shorter and less-costly route down the east side of Manitoba.
“These political decisions are not in the best interests of Manitobans,” said Tory Hydro critic Reg Helwer. “If the PUB thinks there’s a problem, maybe we should believe them.”
Manitoba Hydro spokesman Glenn Schneider said the Crown corporation will appeal the PUB’s order, which denied Hydro’s request for a 2.9 per cent rate increase as of April 1 in both 2010 and 2011. Instead, the PUB approved increases of 1.9 per cent as of April 1, 2010 and two per cent as of April 1, 2011.
In light of that, the PUB ordered Hydro to submit “forthwith” to the PUB its intention for rates for 2012-13.
“We disagree with a great deal with what the board has expressed,” Schneider said. “It’s not in their purview to review our development plans. There is a separate process for the government to do that.”
Energy and Mines Minister Dave Chomiak, who is responsible for Hydro, said the PUB’s order appears to be a continuation of the feud between the PUB and Hydro, a fight that now involves the Manitoba Court of Appeal over whether the PUB should have access to confidential export deals Hydro has with utilities in Wisconsin and Minnesota.
bruce.owen@freepress.mb.ca
Suggestions for utilty
What Manitoba Hydro should really do according to the Public Utilities Board:
Add wind farms;
Build plants that burn cheap natural gas to create electricity for export instead of expensive dams;
Revisit building a smaller transmission line on the east side of the province, without costly converter stations, to improve reliability of delivering power from existing northern dams.