Hydro in planning stages of $6.8 billion bipole project

CTV’s Jeff Keele takes a closer look at a planned Manitoba Hydro overhaul of two major transmission projects.

Manitoba Hydro is moving ahead with billions of dollars worth of upgrades for two of the province’s major transmission lines.

The crown corporation said it needs to replace equipment at the converter stations for the Bipole One and Bipole Two transmission lines, which were built in the 1970s and 80s.

Hydro media relations officer Peter Chura said 70 per cent of all electricity generated flows from the north to customers in rest of the province.

“It’s very important that we maintain the reliability of the system, by replacing aging infrastructure in that system,” said Chura.

The project is in the planning phase with a timeline stretching to 2037, according to a rate application document filed by Manitoba Hydro to the Public Utilities Board (PUB).

The current cost estimate is $6.8 billion, but Hydro said that figure could change based on the scope, timing and market conditions.

“It’s possible the price could go up, the price could go down, the price could change, but we’re doing that work right now to establish those facts,” said Chura.

Hydro is currently asking the PUB to approve a 3.5 per cent annual rate increases for the next three years for its operations. A long-term projection forecasts the same amounts.

Chris Klassen, from the Public Interest Law Centre which represents not-for-profit groups, said Manitoba Hydro needs to prove why this project is so crucial at this time.

“In the upcoming rate hearing, based on Hydro’s history, we’ll be asking whether Manitoba Hydro’s cost estimates are accurate and whether this expensive project is truly needed now,” said Klassen.

That history includes the Bipole Three line and the Keeyask Generating Station, that went $3.7 billion over budget.

Premier Wab Kinew defended the costly upgrades, saying this is about building Manitoba’s future.

“This is exactly the leverage Manitoba has as a low carbon energy power,” said Kinew.