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
BREAKING Ontario Provincial Police arrest 64 suspects in child sexual exploitation investigation
Ontario Provincial Police say 64 suspects are facing a combined 348 charges in connection with a series of child sexual exploitation investigations that spanned the province.
Most of Canada to receive emergency alert test today
The federal government will test its capacity to issue emergency alerts today, with the exception of Ontario, where the test will take place on May 15.
OPINION What King Charles' schedule being too 'full' to accommodate son suggests about relationship with Prince Harry
Prince Harry, the Duke of Sussex, has made headlines with his recent arrival in the U.K., this time to celebrate all things Invictus. But upon the prince landing in the U.K., we have already had confirmation that King Charles III won't have time to see his youngest son during his brief visit.
Seafood, eat food: Calgary Stampede releases Midway menu
The Calgary Stampede has released its menu of sweet, salty and spicy treats available on the Midway for the Greatest Outdoor Show on Earth.
Ontario man devastated to learn $150,000 line of credit isn't insured after wife dies
An Ontario man found out that a line of credit he thought was insured actually isn't after his wife of 50 years died.
Boy Scouts of America is rebranding. Here's why they've changed their name
After more than a century, Boy Scouts of America is rebranding as Scouting America, another major shakeup for an organization that once proudly resisted change.
Trial begins for Winnipeg serial killer who claims he was mentally ill
The trial of a man who admits he killed four women in Winnipeg is set to begin Wednesday, and a law professor says lawyers for Jeremy Skibicki have multiple hurdles to clear for a defence of mental illness.
These adults born in the '90s partnered with their parents to buy homes in Ontario
An Ontario woman said it would have been impossible to buy a house without her mother – an anecdote that animates the fact that over 17 per cent of Canadian homeowners born in the ‘90s own their property with their parents, according to a new report.
New Canadian study could be a lifesaver for thousands suffering from CTE
A first-of-its-kind Canadian research study is working towards a major medical breakthrough for a brain disorder, believed to be caused by repeated head injuries, that can only be detected after death.