NDP government interference in Manitoba Hydro is pushing the Crown Corporation to the brink of bankruptcy. Recently released quarterly financials show Hydro only posted a profit because of higher rates paid by Manitobans.
“The NDP is taking the crown jewel of our province and putting it in a dangerous financial situation. Poor investment choices mean Manitobans will pay more for electricity and natural gas or Hydro will fail as a company,” said Hydro Critic Ralph Eichler.
Net income at Hydro is down $30 million from this time last year and Hydro lost $11 million on natural gas sales for the first nine months of hydro’s fiscal year. Domestic sales for electricity are up three percent, but only due to rate hikes imposed on Manitoba families and businesses. Export sales are down $14 million over the same period from last year.
Nearly 9 months ago, the Public Utilities Board concluded that “Spending on the Conawapa Project and the North-South Transmission Upgrade Project be discontinued immediately and the projects terminated.” This was based on their finding that “The risks associated with the Conawapa Project are unacceptable.”
While the NDP claimed to accept the PUB findings, the Hydro quarterly report on capital expenditure for the last nine months of 2014 included “$31 million for future Conawapa generation”.