Biomass plan triggers questions

By Checkbiotech.org


Substation Relay Protection Training

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$699
Coupon Price:
$599
Reserve Your Seat Today
A proposal by We Energies to generate power by burning waste wood at a Wisconsin paper mill comes at a time when the paper industry and environmentalists have raised concerns about another wood-burning power plant in northern Wisconsin.

The Milwaukee utility this month said it wants to build a $250 million power plant near Wausau in Rothschild that would generate 50 megawatts of electricity, enough to power 40,000 homes.

The biomass project is in response to the state's renewable energy mandate that requires 10% of Wisconsin's electricity to come from wind turbines, solar panels and other renewable sources by 2015.

Plans for another project in Ashland on Lake Superior have raised concerns about the impact of the plant on the state's papermaking industry.

The Wisconsin Paper Council and the Flambeau River Papers in Park Falls have raised concerns about plans by Xcel Energy Corp. to convert a coal-fired boiler in Ashland to burn wood.

If approved by state regulators, the Ashland site would become the biggest biomass power plant in the Midwest, Xcel said last year.

The Clean Wisconsin environmental group sought a review of the Ashland plant to determine the impact on northern forests and greenhouse gas emissions.

And Flambeau River Papers of Park Falls raised questions about whether the Xcel project would raise prices for wood that would be used in a bio-refinery that Flambeau intends to build to make biodiesel and wax.

"We don't want to overharvest the forest, we want to make sure there's enough residue on the forest floor," said Keith Reopelle of Clean Wisconsin.

"With all of the additional projects going on in the area, particularly pellet plants and the broad interest in use of biomass for energy, we think there's a serious risk of harming existing forest products industries," said Earl Gustafson, vice president at the Wisconsin Paper Council, based in Neenah.

Experts hired by Xcel Energy of Eau Claire, including the Energy Center of Wisconsin, said there is plenty of waste wood left over after forests are culled for logging.

"We spoke with the foresters from the counties in the area and they indicated the vast majority of this resource is not being collected," said Sean Weitner of the Energy Center during a hearing on the Xcel proposal.

"There's enough wood to go around for everyone," said Pete Coutu of Plum Creek Timber, the largest owner of private forestland in the state.

An analysis by the state Public Service Commission said there is a risk to the northern forests from biomass power projects, but only if loggers and timber companies fail to follow sustainable harvesting practices.

Wisconsin has been a leader in sustainable forestry, Gov. Jim Doyle said at the announcement of the We Energies biomass power plant this month.

But Katie Nekola of Clean Wisconsin said the PSC should do a more detailed review of the project and its impact on greenhouse gas emissions, taking into account emissions caused by logging.

"If biomass is worth doing, it's worth doing right," she said.

The move to burn more wood is part of a push by the state Office of Energy Independence to boost the supply of renewable energy and expand markets for energy that can be produced in Wisconsin - as opposed to coal, which is imported from Wyoming and other states.

If approved by state regulators, the We Energies biomass plant would burn 500,000 tons of waste wood per year when built in 2013.

While critical of the Ashland project, the Paper Council supports the project proposed by We Energies and Domtar Corp., a Montreal-based paper company that's a member of the council.

"Domtar has decades of experience in the forest products industry," Gustafson said. "They and We Energies are targeting waste wood. As a paper manufacture itself, Domtar won't be doing anything to harm their market for pulp wood."

Waste wood - tree trimmings, bark and chips left over from logging - amounts to a plentiful resource.

A study by the U.S. Department of Energy in 2006 found the Upper Midwest, including Iowa, Minnesota, Illinois, Wisconsin and North Dakota, has the biggest potential biomass resource.

Energy from wood pulp and plant fibers could be a key economic engine for the state, Doyle said.

The Great Lakes Bioenergy Research Center at the University of Wisconsin-Madison is researching ways to develop energy from wood, switchgrass and other plant matter.

In 2007, it received the largest federal grant in the university's history - $125 million. The center is a cornerstone of plans to develop a UW energy institute, Doyle said.

Across Wisconsin, a string of biomass or biofuel projects that would burn waste wood have been announced over the past year or so, including Flambeau's Park Falls bio-refinery. They include:

• In Cassville, DTE Energy Services Inc. of Ann Arbor, Mich., has begun construction to convert a coal-fired power plant to burn wood, primarily urban wood waste, said John Austerberry of DTE. The conversion is projected to create 60 construction jobs and 30 permanent jobs, DTE executives told Cassville community leaders this year.

• In Menasha, studies are under way to explore burning biomass instead of coal at a utility power plant.

• The New North, the economic development arm that is northern Wisconsin's counterpart to the Milwaukee 7, is seeking investors to develop a cellulosic ethanol plant at a former paper mill in Niagara and is conducting a two-phase study to assess the biomass resource in the north central part of the state.

• The state plans to spend $250 million to convert the Charter Street heating plant at the UW-Madison to burn biomass. Similar projects are being studied at other UW campuses.

In Ashland, the Xcel project was supported because it would create more opportunities for the state's timber and logging interests.

"This project will mean jobs for our loggers in an area that is desperately in need of economic stimuli," Roger Hanson of Ashland testified at a hearing last month.

Clean Wisconsin said questions remain about biomass, even if it's better than coal.

Like coal-fired power plants, generators burning wood release carbon dioxide into the air.

David Mladenoff, a UW forestry expert, testifying for Clean Wisconsin in the Ashland case, said the state needs to do a more thorough review of the impact of these projects on the North Woods and on greenhouse gas emissions.

"Wisconsin is at an important policy juncture," Mladenoff said.

"It is not enough to say that burning wood is better than burning coal, while ignoring the impacts of burning wood. We need to get this right from the beginning."

Related News

U.A.E. Becomes First Arab Nation to Open a Nuclear Power Plant

UAE Nuclear Power Plant launches the Barakah facility, delivering clean electricity to the Middle East under IAEA safeguards amid Gulf tensions, proliferation risks, and debates over renewables, natural gas, grid resilience, and energy security.

 

Key Points

The UAE Nuclear Power Plant, Barakah, is a civilian facility expected to supply 25% of electricity under IAEA oversight.

✅ Barakah reactors target 25% of national electricity.

✅ Operates under IAEA oversight, no enrichment per US 123 deal.

✅ Raises regional security, proliferation, and environmental concerns.

 

The United Arab Emirates became the first Arab country to open a nuclear power plant on Saturday, following a crucial step in Abu Dhabi earlier in the project, raising concerns about the long-term consequences of introducing more nuclear programs to the Middle East.

Two other countries in the region — Israel and Iran — already have nuclear capabilities. Israel has an unacknowledged nuclear weapons arsenal and Iran has a controversial uranium enrichment program that it insists is solely for peaceful purposes.

The U.A.E., a tiny nation that has become a regional heavyweight and international business center, said it built the plant to decrease its reliance on the oil that has powered and enriched the country and its Gulf neighbors for decades. It said that once its four units were all running, the South Korean-designed plant would provide a quarter of the country’s electricity, with Unit 1 reaching 100% power as a milestone toward commercial operations.

Seeking to quiet fears that it was trying to build muscle to use against its regional rivals, it has insisted that it intends to use its nuclear program only for energy purposes.

But with Iran in a standoff with Western powers over its nuclear program, Israel in the neighborhood and tensions high among Gulf countries, some analysts view the new plant — and any that may follow — as a security and environmental headache. Other Arab countries, including Saudi Arabia and Iraq, are also starting or planning nuclear energy programs.

The Middle East is already riven with enmities that pit Saudi Arabia and the U.A.E. against Iran, Qatar and Iran’s regional proxies. One of those proxies, the Yemen-based Houthi rebel group, claimed an attack on the Barakah plant when it was under construction in 2017.

And Iran is widely believed to be behind a series of attacks on Saudi oil facilities and oil tankers passing through the Gulf over the last year.

“The UAE’s investment in these four nuclear reactors risks further destabilizing the volatile Gulf region, damaging the environment and raising the possibility of nuclear proliferation,” Paul Dorfman, a researcher at University College London’s Energy Institute, wrote in an op-ed in March.

Noting that the U.A.E. had other energy options, including “some of the best solar energy resources in the world,” he added that “the nature of Emirate interest in nuclear may lie hidden in plain sight — nuclear weapon proliferation.”
But the U.A.E. has said it considered natural gas and renewable energy sources before dismissing them in favor of nuclear energy because they would not produce enough for its needs.

Offering evidence that its intentions are peaceful, it points to its collaborations with the International Atomic Energy Agency, which has reviewed the Barakah project, and the United States, with which it signed a nuclear energy cooperation agreement in 2009 that allows it to receive nuclear materials and technical assistance from the United States while barring it from uranium enrichment and other possible bomb-development activities.

That has not persuaded Qatar, which last year lodged a complaint with the international nuclear watchdog group over the Barakah plant, calling it “a serious threat to the stability of the region and its environment.”

The U.A.E.’s oil exports account for about a quarter of its total gross domestic product. Despite its gusher of oil, it has imported increasing amounts of natural gas in recent years in part to power its energy-intensive desalination plants.

“We proudly witness the start of Barakah nuclear power plant operations, in alignment with the highest international safety standards,” Mohammed bin Zayed, the U.A.E.’s de facto ruler, tweeted on Saturday.

The new nuclear facility, which is in the Gharbiya region on the coast, close to Qatar and Saudi Arabia, is the first of several prospective Middle East nuclear plants, even as Europe reduces nuclear capacity elsewhere. Egypt plans to build a power plant with four nuclear reactors.

Saudi Arabia is also building a civilian nuclear reactor while pursuing a nuclear cooperation deal with the United States, and globally, China's nuclear program remains on a steady development track, though the Trump administration has said it would sign such an agreement only if it includes safeguards against weapons development.

 

Related News

View more

Electrification Of Vehicles Prompts BC Hydro's First Call For Power In 15 Years

BC Hydro Clean Power Call 2024 seeks utility-scale renewable energy, including wind and solar, to meet rising electricity demand, advance clean goals, expand grid, and support Indigenous participation through competitive procurement and equity opportunities.

 

Key Points

BC Hydro's 2024 bid to add zero-emission wind and solar to meet rising demand and support Indigenous equity.

✅ Competitive procurement for utility-scale wind and solar

✅ Targets 3,000 GWh new greenfield by fiscal 2029

✅ Encourages Indigenous ownership and equity stakes

 

The Government of British Columbia (the Government or Province) has announced that BC Hydro would be moving forward with a call for new sources of 100 percent clean, renewable emission-free electricity, notably including wind and solar, even as nuclear power remains a divisive option among residents. The call, expected to launch in spring 2024, is BC Hydro's first call for power in 15 years and will seek power from larger scale projects.

Over the past decade, British Columbia has experienced a growing economy and population as well as a move by the housing, business and transportation sectors towards electrification, with industrial demand from LNG facilities also influencing load growth. As the Government highlighted in their recent announcement, the number of registered light-duty electric vehicles in British Columbia increased from 5,000 in 2016 to more than 100,000 in 2023. Zero-emission vehicles represented 18.1 percent of new light-duty passenger vehicles sold in British Columbia in 2022, the highest percentage for any province or territory.

Ultimately, the Province now expects electricity demand in British Columbia to increase by 15 percent by 2030. BC Hydro elaborated on the growing need for electricity in their recent Signposts Update to the British Columbia Utilities Commission (BCUC), and noted additions such as new generating stations coming online to support capacity. BC Hydro implemented its Signposts Update process to monitor whether the "Near-term actions" established in its 2021 Integrated Resource Plan continue to be appropriate and align with the changing circumstances in electricity demand. Those actions outline how BC Hydro will meet the electricity needs of its customers over the next 20 years. The original Near-term actions focused on demand-side management and not incremental electricity production.

In its Update, BC Hydro emphasized that increased use of electricity and decreased supply, along with episodes of importing out-of-province fossil power during tight periods, has advanced the forecast of the province's need for additional renewable energy by three years. Accordingly, BC Hydro has updated its 2021 Integrated Resource Plan to, among other things:

accelerate the timing of several Near-term actions on energy efficiency, demand response, industrial load curtailment, electricity purchase agreement renewals and utility-scale batteries; and
add new Near-term actions for BC Hydro to acquire an additional 3,000 GWh per year of new clean, renewable energy from greenfield facilities in the province able to achieve commercial operation as early as fiscal 2029, as well as approximately 700 GWh per year of new clean, renewable energy from existing facilities prior to fiscal 2029.
The Province's predictions align with Canada Energy Regulator's (CER) "Canada's Energy Future 2023" flagship report (Report) released on June 20, 2023. The Report, which looks at Canadians' possible energy futures, includes two long-term scenarios modelled on Canada reaching net-zero by 2050. Under either scenario, the electricity sector is predicted to serve as the cornerstone of the net-zero energy system, with examples such as Hydro-Quebec's decarbonization strategy illustrating this shift as it transforms and expands to accommodate increasing electricity use.

Key Details of the Call
Though not finalized, the call for power will be a competitive process, with the exact details to be designed by BC Hydro and the Province, incorporating input from the recently-formed BC Hydro Task Force made up of Indigenous communities, industry and stakeholders. This is a shift from previous calls for power, which operated as a continuous-intake program with a standing offer at a fixed rate, after projects like the Siwash Creek project were left in limbo.

Drawing on advice from Indigenous and external energy experts, the Province seeks to advance Indigenous ownership and equity interest opportunities in the electricity sector, potentially with minimum requirements for Indigenous participation in new projects to be a condition of the competitive process. The Province has also committed $140 million to the B.C. Indigenous Clean Energy Initiative (BCICEI) to support Indigenous-led power projects and their ability to respond to future electricity demand, facilitating their ability to compete in the call for power, despite their smaller size.

BC Hydro expects to initiate the call in spring 2024, with the goal of acquiring new sources of electricity as early as 2028, even as clean electricity affordability features prominently in Ontario's election discourse.

 

Related News

View more

Electricity Prices Surge to Record as Europe Struggles to Keep Lights on

France Electricity Crisis drives record power prices as nuclear outages squeeze supply, forcing energy imports, fuel oil and coal generation, amid gas market shocks, weak wind output, and freezing weather straining the grid.

 

Key Points

A French power shortfall from nuclear outages, record prices, heavy imports, and oil-fired backup amid cold weather.

✅ EDF halted reactors; 10% capacity offline, 30% by January

✅ Imports surge; fuel oil and coal units dispatched

✅ Prices spike as gas reverses flow and wind output drops

 

Electricity prices surged to a fresh record as France scrambled to keep its lights on, sucking up supplies from the rest of Europe.

France, usually an exporter of power, is boosting electricity imports and even burning fuel oil, and has at times limited nuclear output due to high river temperatures during heatwaves. The crunch comes after Electricite de France SA said it would halt four reactors accounting for 10% of the nation’s nuclear capacity, straining power grids already facing cold weather. Six oil-fired units were turned on in France on Tuesday morning, according to a filing with Entsoe.

“It’s illustrating how severe it is when they’re actually starting to burn fuel oil and importing from all these countries,” said Fabian Ronningen, an analyst at Rystad Energy. The unexpected plant maintenance “is reflected in the market prices,” he said

Europe is facing an energy crisis, with utilities relying on coal and oil. Almost 30% of France’s nuclear capacity will be offline at the beginning of January, leaving the energy market at the mercy of the weather. To make matters worse, Germany is closing almost half of its nuclear capacity before the end of the year, as Europe loses nuclear power just when it really needs energy.

German power for delivery next year surged 10% to 278.50 euros a megawatt-hour, while the French contract for January added 9.5% to a record 700.60 euros. Prices also gained, under Europe’s marginal pricing system, as gas jumped after shipments from Russia via a key pipeline reversed direction, flowing eastward toward Poland instead.

Neighboring countries are boosting their exports to France this week to cover for lost nuclear output, with imports from Germany rising to highest level in at least four years. In the U.K., four coal power units were operating on Tuesday with as much as 1.5 gigawatts of hourly output being sent across the channel. 

The power crisis is so severe that the French government has asked EDF to restart some nuclear reactors earlier than planned amid outage risks for nuclear-powered France. Ecology Minister Barbara Pompili said last weekend that, in addition to the early reactor restarts and past river-temperature limits, the country had contracts with some companies in which they agreed to cut production during peak demand hours in exchange for payments from the government.

Higher energy prices threaten to derail Europe’s economic recovery just as the coronavirus omicron variety is spreading. Trafigura Group’s Nyrstar will pause production at its zinc smelter in France in the first week of January because of rising electricity prices. Norwegian fertilizer producer Yara International, which curbed output earlier this year, said it would continue to monitor the situation closely and curtail production where necessary.

Freezing weather this week is also sending short-term power prices surging as renewables can’t keep up, even though wind and solar overtook gas in the EU last year. German wind output plunged to a five-week low on Tuesday.

 

Related News

View more

Ontario prepares to extend disconnect moratoriums for residential electricity customers

Ontario Electricity Relief outlines an extended disconnect moratorium, potential time-of-use price changes, and Ontario Energy Board oversight to support residential customers facing COVID-19 hardship and bill payment challenges during the emergency in Ontario.

 

Key Points

Plan to extend disconnect moratorium and weigh time-of-use price relief for residential customers during COVID-19.

✅ Extends winter disconnect ban by 3 months

✅ Considers time-of-use price adjustments

✅ Requires Ontario Energy Board approval

 

The Ontario government is preparing to announce electricity relief for residential electricity users struggling because of the COVID-19 emergency, according to sources.

Sources close to those discussions say a decision has been made to lengthen the existing five-month disconnect moratorium by an additional three months.

Separately, Hydro One's relief fund has offered support to its customers during the pandemic.

News releases about the moratorium extension are currently being drafted and are expected to be released shortly, as the pandemic has reduced electricity usage across Ontario.

Electricity utilities in Ontario are currently prohibited from disconnecting residential customers for non-payment during the winter ban period from November 15 to April 30.

The province is also looking at providing further relief by adjusting time-of-use prices, such as off-peak electricity rates, which are designed to encourage shifting of energy use away from periods of high total consumption to periods of low demand.

For businesses, the province has provided stable electricity pricing to support industrial and commercial operations.

But that would require Ontario Energy Board approval and no decision has been finalized, our sources advise.

 

Related News

View more

New bill would close loophole that left hundreds of Kentucky miners with cold checks

Kentucky Coal Wage Protection Bill strengthens performance bond enforcement, links Energy and Environment Cabinet and Labor Cabinet notifications, addresses Blackjewel bankruptcy fallout, safeguards unpaid miners, ties mining permits to payroll bonds, penalizes violators via revocations.

 

Key Points

A Kentucky plan to enforce wage bonds and revoke mining permits to protect miners after bankruptcies.

✅ Requires wage bonds for firms under 5 years

✅ Links Energy and Environment Cabinet and Labor Cabinet

✅ Violators face permit revocation in 90 days

 

Following the high-profile bankruptcy of a coal company that left hundreds of Kentucky miners with bad checks last month, Sen. Johnny Ray Turner (D-Prestonsburg) said he will pre-file a bill Thursday aimed at closing a loophole that allowed the company to operate in violation of state law.

The bill would also compel state agencies to determine whether other companies are currently in violation of the law, and could revoke mining permits if the companies don't comply.

Turner's bill would amend an already-existing law that requires coal and construction companies that have been operating in Kentucky for less than five years to post a performance bond to protect wages if the companies cease their operations.

Blackjewel LLC., which employed hundreds of miners in Eastern Kentucky, failed to post that bond. When it shut its mines down and filed for bankruptcy last month, it left hundreds of miners without payment for 3 weeks and one day of work.

The bond issue has sparked criticism from various state officials, including Attorney General Andy Beshear, who said Tuesday that he would investigate whether other companies are currently in violation, similar to an external investigation of utility workers in another jurisdiction.

Blackjewel issued cold checks to its employees June 28, and when the checks bounced days later, many employees were left with bank accounts overdrawn by more than $1,000. The bankruptcy left many miners and their families with concerns over upcoming bill and mortgage payments, and, as unpaid days off at utilities elsewhere show, the strain on workers can be severe, and fostered a ongoing protest that blocked a train hauling coal from one of the company's Harlan County mines.

Blackjewel had been operating in Kentucky for about two years before it filed for bankruptcy, so it should have paid the performance bond, according to state law.

David A. Dickerson, the Kentucky Labor Cabinet Secretary, said the law as it's currently written does not set up any mechanism that notifies the cabinet, or provides comparable public reporting at large utility projects elsewhere, when a company opens in Kentucky that is supposed to pay the bond.

That allowed Blackjewel to operate for two years without any protection for workers before it closed its mines. Had the company posted the bond according to state law, miners likely would have been paid for the work they had already completed, officials said.

The law requires companies to set aside enough money to cover payroll for four weeks.

Turner's bill would compel the state Energy and Environment Cabinet to notify the Labor Cabinet's Department of Workplace Standards of any application for a mining permit from a company that has been doing business in Kentucky for less than five years.

It also compels the EEC to notify the Labor Cabinet of any companies that already have permits that are subject to the bond.

"It should have already been that way, but I'm happy so our children don't have to go through this," said Jeff Willig, a former Blackjewel miner who helped launch the protest at the railroad.

Willig said he and other miners will continue to block the tracks until they receive payment for their past work.

Any company currently operating in violation of the law would have 90 days to become compliant before its mining permits are revoked. New companies that are applying for permits will be required post the bond before permits are issued.

"Hopefully it will take care of the loopholes that had been exploited by Blackjewel," Turner said.

The bill will be taken up by the legislature when it returns to session in January. It would also cover attorneys' fees if workers are forced to sue their employer to cover wages, underscoring broader worker safety concerns during health emergencies.

Turner said he has reached out to Republican leadership in the Senate, and expects the bill to have bipartisan support come January.

Turner announced the legislation at a press conference in Harlan, the county with the highest population of Blackjewel employees affected by the bankruptcy, and as prolonged utility outages after tornadoes have strained other Kentucky communities.

State rep. Angie Hatton (D-Whitesburg) was also in attendance, along with rep. Chris Fugate (R-Chavies) and state Sen. Morgan McGarvey (D-Louisville).

Hatton said the bankruptcy has had serious economic impact throughout Eastern Kentucky, including in Letcher County, which is home to more than 130 former Blackjewel workers.

"This is something that has done a lot of damage to Eastern Kentucky," Hatton said.

Hatton plans to file the same bill in the state House of Representatives.

Fugate commended community members in Harlan County and elsewhere who have banded together in support of the miners by donating children's clothing, school supplies, food and other goods, while other regions have created a coal transition fund to help displaced workers.

Mosley called the bankruptcy "totally unprecedented" and said the current performance bond law, which has been on-the-books since 1986, lacked the enforcement necessary to protect miners in bankruptcies like Blackjewel's, even as a workplace safety fine in another case shows regulatory consequences in other industries.

"There was a law, there wasn't good enough process," Mosley said.

Blackjewel received court approval to sell many of its mines last month, including many in Kentucky, to Kopper Glo Mining, LLC.

As part of the sale agreement, Kopper Glo said it would pay $450,000 to cover the past wages of Blackjewel miners, and collect a per ton fee accumulating up to $550,000 that it will also contribute to pay back wages.

That total $1 million is less than half of all back wages owed to Blackjewel miners, but attorneys who filed a class action suit against the company said miners have a priority lien on the purchase price. That could allow former Blackjewel employees to make good on their back wages as bankruptcy proceedings continue.

Mosley said he spoke with a Kopper Glo official Thursday, who said the company is working to re-open the mines as quickly as possible. The official did not give an exact timeline.

 

Related News

View more

Tories 'taking the heart out of Manitoba Hydro' by promoting subsidiaries, scrapping low-cost pledges: NDP

Manitoba Hydro Privatization Debate centers on subsidiaries, Crown corporation governance, clean energy priorities, and electricity rates, as board terms shift oversight and transparency, sparking concerns about sell-offs and government control.

 

Key Points

A dispute over Hydro's governance, subsidiaries, electricity rates, and clean energy amid fears of partial privatization.

✅ Rewritten terms allow subsidiaries and shift board duties.

✅ Low rates and clean energy mandates softened in guidance.

✅ Govt cites Hydro Act; NDP warns of sell-off risks.

 

The board of Manitoba Hydro is being reminded it can divvy up some of the utility's work to subsidiaries — which the NDP is decrying as a step toward privatization. 

A sentence seemingly granting the board permission to create subsidiaries was included in the board's new terms of reference, which the NDP raised during question period Wednesday. 

The document also eliminated references asking Manitoba Hydro to keep electricity rates low, even as rate hike hearings proceed, and supply power in an environmentally-friendly fashion.

NDP raises spectre of Manitoba Hydro's privatization with new CEO
"They're essentially taking the heart out of Manitoba Hydro," NDP leader Wab Kinew said.

Cheap, clean energy is the basis by which the Crown corporation was formed, even as scaled-back rate increases are planned for next year, he said. 

"That's the whole reason we created this utility in the first place."

Another addition to the board's guidelines include stating the corporation is responsible to the government minister, who must be "proactively informed" when significant issues arise. 

The provincial government, however, says the rewritten terms of reference was the directive of the Manitoba Hydro board and not itself.

CBC's requests to the government for an interview were directed to Manitoba Hydro.

In an interview, Manitoba Hydro spokesperson Scott Powell said the energy utility has undergone no legislative changes, and is still governed by the Manitoba Hydro Act. 

The terms of reference were altered to align the board's duties with the new act overseeing Crown corporations, Powell said.

"Whether you have one or two words different in the terms of reference, the essence of the company hasn't changed."

While the new terms of reference no longer instructs the corporation to ensure an "environmentally responsible supply of energy for Manitobans," it encourages the board to "promote economy and efficiency in all phases of power generation and distribution."

On the cost to ratepayers, the updated directions asks the utility to deliver "safe, reliable energy services at a fair price," a standard clarified by a recent appeal court ruling on First Nations rates, but the board is not specifically instructed with keeping electricity rates low. 

Kinew contends the added sentence on subsidiaries permits Hydro to be broken off and sold for parts, although the terms of reference does not specify if any subsidiary would be wholly owned by Hydro or contracted to a private company.

Powell said Manitoba Hydro has been permitted to create subsidiaries since 1997, and nothing has changed since.

Kinew warned about Hydro's privatization last week when Jay Grewal was announced as Hydro's incoming CEO and president.

She was employed with B.C. Hydro when then-premier Gordon Campbell — hired by the Manitoba government to investigate costly overruns on two electricity megaprojects — sold off segments of the utility.

She then became managing director of Accenture, a global management consulting firm, which acquired several B.C. Hydro departments.

During question period Wednesday, Pallister disputed that Manitoba Hydro is bound to be sold.

He slammed the NDP's "Americanization strategy" of producing more electricity than it is capable of selling, which has saddled ratepayers with billions in debt and prompted proposed 2.5% annual increases in coming years. 

The makeup of the Hydro board has undergone a complete turnover in under a year, a contrast to Ontario's Hydro One shakeup vow during that period.

Nine of the 10 members resigned en masse this March over an impasse with the Pallister government. The lone holdover, Cliff Graydon, was dismissed from his post last month after the Progressive Conservatives removed him from caucus. 

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.