In a sudden departure, Manitoba Hydro's board and chair have resigned over a fight with the government that appointed them.
"We are going to refresh a number of our boards and obviously we're going to refresh that one too," said Premier Brian Pallister.
Hydro board chair Sanford Riley issued a statement Wednesday morning confirming the resignations. He said the board has tried to meet with the premier to resolve critical issues for more than a year, including Hydro's finances and relationships with Indigenous peoples. Riley also said the board learned the government was set to remove him as chair.
"Despite repeated attempts we have not been able to have a meaningful dialogue with the government and we have reached an impasse. We have been informed the government intends to remove the chair and has therefore lost confidence in the board. Accordingly we have determined that it is necessary to resign," said the statement.
You can read the full statement here.
"Clearly there is something wrong with premier's approach to Hydro when his entire handpicked board, many of them who'd donated to his election campaign, walk out on him,” said NDP Leader Wab Kinew.
The premier admits Riley was set to be moved away from Hydro to another board, but he says the statement doesn’t tell the entire story.
"There's a couple of untruths there I guess," said Pallister.
Pallister said the real story is the Hydro board's attempt to pay the Manitoba Metis Federation $70 million, money, Pallister said, to ensure the MMF won't stall a transmission line to Minnesota with regulatory challenges. The premier said a cabinet directive was given to the board to stop the payment.
"There is an absolute obligation this government has and that's to stand up for Manitoba ratepayers and Manitoba taxpayers and that's what we're going to continue to do," said Pallister.
MMF, Manitoba Hydro respond
The Manitoba Metis Federation said the $70 million dollar deal with Hydro is a legal agreement to settle issues over past disputes and future developments. MMF President David Chartrand said going back on it will cost taxpayers even more in court.
"You're misleading the public, you're trying to blame the Metis as scapegoats because you have failed in your duty to do due diligence and meet with that board,” said Chartrand.
Manitoba Hydro released a statement in response.
“We have had discussions with the MMF with respect to a long-term, 50-year agreement designed to address their asserted Indigenous rights and claims related to impacts from various transmission projects — both past and future. These discussions built upon the previous turning the page agreement that was entered into by the Province of Manitoba, Manitoba Hydro and the Manitoba Metis Federation. We will not comment further on the details of the discussions. To the extent that there was a disagreement between the government and the board over this, that is between them and it would be inappropriate for the corporation’s management to comment,” said Scott Powell, corporate communication director, Manitoba Hydro.
CTV News has obtained an email that went out to employees from Hydro president and CEO Kelvin Shepherd after the resignations.
"The resignation of the board does not impact our current operations, business plans or day-to-day focus in any way. We will continue with our efforts to evolve our business into a leaner, more customer-focused organization. Completion of key capital projects, including the new Bipole line and Keeyask generating station, will continue to be important priorities. Our rate application before the public utilities board remains in place, and the PUB will render its decision in due course."
The current rate application seeks a 7.9% hike.
Pallister says he expects a new board in place in a matter of days.
