Manitoba considers more private-sector work with Crown-owned energy utility
The Manitoba government says it has no plans to privatize or shut down core functions of its Crown energy utility.
However, it is opening the door to more private-sector involvement in response to an outside report on Manitoba Hydro, and that has the Opposition worried some areas of the corporation will end up in private hands.
"I imagine in the day-to-day operations, the (Manitoba Hydro) board will continue to ask that question -- what is the core mandate of Hydro," Finance Minister Cameron Friesen, the minister responsible for the corporation, said Wednesday.
Friesen tabled in the legislature Wednesday a 62-page response to a report last year by former Saskatchewan premier Brad Wall, who had been commissioned by the Progressive Conservative government to look at the utility's past and future.
Wall's report said lax oversight by the former NDP government allowed costs to skyrocket on the Keeyask generating station and Bipole Three transmission line, which ended up a combined $3.7 billion over budget.
The spending was a key factor in tripling the utility's debt over 15 years, and the corporation's president says the utility is now spending roughly 40 cents of every dollar to service the total debt.
Wall made several recommendations, including selling off or shutting down non-core functions. He also called on the province to consider using private-sector partners for major capital projects to keep costs under control.
The response tabled in the legislature, written by a three-member expert panel, said the government should look at "various subsidiary elements," and if they are deemed to not be core to the utility's mission, they should be sold or closed.
Friesen said no part of generating, transmitting or selling electricity or gas is on the table.
As an example of a non-core function, he pointed to a recent deal with Xplornet to bring high-speed internet service to remote communities using Hydro's fibre-optic network. There's no reason for Hydro to offer that service, he said.
"Manitoba Hydro is not for sale. Our government's plan has always been to strengthen and stabilize Hydro," he said.
The Opposition New Democrats said the statement leaves the door open to privatizing services such as customer call centres.
"I want to know that when my power goes out, that I can pick up the phone and make a phone call and have somebody at Manitoba Hydro ... make sure that my energy is restored," NDP hydro critic Adrien Sala said.
Friesen was willing to commit to Wall's recommendation for more private-sector partnerships, known as P-3s, for major construction projects.
"I think that P-3 approaches are considered in every single Canadian jurisdiction," Friesen said.
"I would say, probably, P-3 approaches have been under-considered in this jurisdiction."
The government is still working through most of Wall's report. It expects to have a new energy framework and new mandate for Manitoba Hydro sometime next spring. That in turn will lead to more details on the utility's future moves, Friesen said.
This report by The Canadian Press was first published Nov. 30, 2022
CTVNews.ca Top Stories
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Broadcaster and commentator Rex Murphy dead at 77: National Post
The National Post is reporting that Rex Murphy, the pundit and columnist who hosted a national call-in radio show for decades, has died.
Pearson gold heist suspect arrested after flying into Toronto from India
Another suspect is in custody in connection with the gold heist at Toronto Pearson International Airport last year, police say.
Millions of cyberattacks per hour as B.C. government investigates multiple breaches
Careful attention to government statements and legislation is required to get a handle on the level of risk British Columbians’ information is under, as investigators probe multiple breaches under a continued barrage of attacks.
Ontario family receives massive hospital bill as part of LTC law, refuses to pay
A southwestern Ontario woman has received an $8,400 bill from a hospital in Windsor, Ont., after she refused to put her mother in a nursing home she hated -- and she says she has no intention of paying it.
Debate on abortion rights erupts on Parliament Hill, Poilievre vows he won't legislate
A Conservative government led by Pierre Poilievre would not legislate on, nor use the notwithstanding clause, on abortion, his office says, as anti-abortion protesters gather on Parliament Hill.
Justin and Hailey Bieber are expecting their first child together
Hailey and Justin Bieber are going to be parents. The couple announced the news on Thursday on Instagram, both sharing a video that showcases Hailey Bieber's growing belly.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
New 'Lord of the Rings' film coming in 2026
The Oscar-winning team behind the nearly US$6 billion blockbuster 'Lord of the Rings' and 'The Hobbit' trilogies is reuniting to produce two new films.