Taxpayers Federation Backs Winnipeg Hydro Sale

WINNIPEG: City Council should leap at the opportunity to sell Winnipeg Hydro to Manitoba Hydro, says the Canadian Taxpayers Federation. A one time multi-million cash injection into City coffers and the elimination of the utility's $140 million debt would go a long way to release the City from its over reliance on property taxes.

"Providing the sale is based on a fair market value for the electric utility, Councillors would be foolish not to accept the offer," said Victor Vrsnik, CTF provincial director. "The alternative is less edifying: increased bulk electricity costs from Manitoba Hydro and the high cost of upgrading a worn out power plant."

"Given that electricity rate changes must be approved by the Public Utility Board, Winnipeg ratepayers need not fear that the sale of Winnipeg Hydro to Manitoba Hydro will automatically lead to higher utility costs," added Vrsnik.

Here are the CTF's Top Five reasons to sell Winnipeg Hydro to Manitoba Hydro:

5. End hidden subsidies to Winnipeg Hydro.
4. Maintain steady and low utility rates.
3. Avoid having to spend a fortune on Point du Bois Power Plant upgrades.
2. Avoid having to pay more for bulk electricity sales from Manitoba Hydro.
1. Pay down city debt; save a fortune in debt interest payments; and cut property taxes.

Vrsnik cautioned City Councillors not to spend the sale money for political purposes. All Winnipeggers own Winnipeg Hydro. Therefore, the simplest and fairest way to benefit the Winnipeg shareholders is to apply the proceeds from the sale toward property tax relief.