Manitoba and Ontario agree to transfer electricity

This is part of Canada's Clean Energy Transfer Initiative and will mean that 150 megawatts will be transferred in 2006, increasing to 400 MW each year as upgrades are made to transmission systems between Winnipeg in Manitoba and Thunder Bay in Ontario.

The upgrades are to be done by 2009 and will represent a doubling of the east-to-west grid capacity at the Manitoba-Ontario connection point.

Manitoba Energy Minister Dave Chomiak said the transfer will be equal to eliminating emissions from 500,000 vehicles.

This is the first phase of the initiative. The second phase is being negotiated and it will eventually transfer 3,000 MW.

"The second phase would require the construction of new generating facilities in Manitoba, as well as a new transmission infrastructure," said a ministry press statement. "At present, Manitoba has developed approximately half of its hydroelectric potential."

Both provinces are trying to get the federal government to help finance the project.