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MB: Your Hydro Bill's Ticking Time Bomb

Author: Colin Craig 2011/01/26

Manitoba Hydro is sitting on some really bad news for ratepayers. If you thought cost overruns for the new stadium and Human Rights Museum were bad, wait till you hear Hydro’s news about its new power line.

The project is known as BiPole III and it involves building a massive power line from just outside Winnipeg to Northern Manitoba. Back in 2007, Manitoba Hydro estimated the line and new conversion facilities would cost $2.2 billion.

Yet here we are in 2011 and Hydro still hasn’t officially updated the number.

That’s odd isn’t it?

Consider what happened when the Canadian Museum for Human Rights updated their construction cost. It went from $265 million in 2007 to $315 million in 2009 – a 19 per cent increase.

The new stadium’s cost overruns are well known too. Once pegged at $115 million, we’re now at $190 million and counting – 65 per cent higher.

But the real kicker in the stadium deal was when the new price tag was announced – one week after the municipal election.

With a provincial election this October perhaps that’s why Manitoba Hydro has been slow in updating the number. You see, this is more than just a Hydro issue.

Instead of accepting Hydro’s recommendation to carefully run the BiPole III line to northern Manitoba through the forest along the east side of Lake Winnipeg, some environmental extremists got to our NDP government. They convinced the government to force Hydro to avoid the forest on the east side by running the line all the way over to the west side of the province and then up north through the west side forest.

As a result, the future line is going to have to be about 500 kilometres longer than necessary; costing Manitoba ratepayers at least an extra $1 billion or about $1,000 more for the average Manitoban.

And let’s be clear, the term “environmental extremists” was used for a reason. We’re not talking about the average person who recycles and opposes dumping toxic chemicals into lakes.

We’re talking about people that oppose the east side route even though respectable engineers and environmental scientists have noted its impact is like running a thread across a football field.

But for the extremists, that’s still too much. And as a result of the NDP government listening to them, it’s going to cost you about an extra $1,000.

As for what the revised cost for the project could be, good sources have indicated to the BiPole III Coalition (a group pushing for the common sense east side route) that the price tag for the new power line is at least $4 billion.

In other words, the project’s price tag may have risen 82 per cent over the past four years. And to think we could all shave $1 billion and change off the price tag today if the government would simply listen to what Manitoba Hydro recommended all along – a shorter line down the east side.

The bottom line is either we do something before the line is built or we’ll pay a whole lot later on. The choice is ours.

 

 

 


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