Published:November 7, 2018

Updated:November 7, 2018 5:41 PM CST

https://winnipegsun.com/news/news-news/kinew-wary-of-hydro-privatization-after-new-terms

The province’s official Opposition alleges that Manitoba Hydro’s new terms of reference include a possible step towards privatizing the Crown corporation.

NDP leader Wab Kinew noted the new terms allow the board to establish a subsidiary to help carry out the corporation’s mandate, while not specifying if that could be contracted out to a private company.

“Part of the terms of reference that has been added to create subsidiaries could be a pretext for privatization. In other jurisdictions, before a hydro utility was privatized, first it was broken up,” said Kinew.

Kinew also criticized the new framework for removing requirements that Hydro provide an “environmentally responsible supply of energy for Manitoba” and that power exports be pursued to help keep energy rates low for the province’s ratepayers.

“They’re essentially taking the heart out of Manitoba Hydro here and they’re also opening the door a little further towards privatization,” said Kinew. The province has been criticized in the past for relying too much on taxes and dividends that it takes from Hydro to help balance its books. The Manitoba Liberals have estimated that tab amounted to $380 million for the 2016/17 year.

But Kinew said the Progressive Conservative government may expect the budget gap created by selling the utility would be offset by proceeds of its sale. “It could be that there’s a strong financial incentive for privatization to occur at Hydro,” said Kinew.

Manitoba Crown Services Minister Colleen Mayer’s office declined an interview request on her behalf, stating government didn’t direct the changes.

Manitoba Hydro spokesperson Scott Powell said Hydro boards have set out their own terms of reference “for several years.”

Powell said he doesn’t expect any real change in Hydro operations due to the new terms either. He said that’s because the Crown corporation is still governed by The Manitoba Hydro Act, which hasn’t changed.

Powell said there’s also been no change to the utility’s environmental commitments, stance on rates, or ability to create subsidiaries.

“There’s been no change to Manitoba Hydro’s authority to create subsidiaries to carry out our mandate since 1997,” he said.