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Legislative Assembly of Manitoba ISSN 0713-9454 Third Session - Thirty-Second Legislature of the Legislative Assembly of Manitoba STANDING COMMITTEE on PUBLIC UTILITIES and NATUR AL RESOURCES 33 Elizabeth 11 Chairman Mr. Phi/ Eyler Constituency of River East VOL. XXXII No. 6 - 8:00 p.m., MONDAY, 25 JUNE, 1984. Printed by the Office of the Queens Printer; Province of Manitoba MANITOBA LEGISLATIVE ASSEMBLY Thirty-Second Legislature Members, Constituencies and Political Affiliation Name Constituency Party ADAM,Ho n. A.R. {Pe te ) Ste. Rose NDP ANSTETT, Ho n. Andy Springfield NDP ASHTON,Steve Thompso., NDP BANMAN,Rob ert {Bob) La Verendrye PC SLAKE,Da vid R. {Da ve ) Minnedosa PC BROWN,Arnold Rhineland PC BUCKLASCHUK,Ho n. John M. Gimli NDP CARROLL,Q.C., Henry N. Brandon West IND CORRIN,Q.C. ,Bria n Ellice NDP COWAN,Ho n. Jay Churchill NDP DESJ ARDINS,Ho n. La urent St. Boniface NDP DODICK,Doree n Riel NDP DOERN,Ru ssell Elmwood IND DOLIN,Ho n. Mary Be th Kildonan NDP DOWNEV, James E. Arthur PC DRIEDGER,Al bert Emerson PC ENNS,Harry Lakeside PC EVANS,Ho n. Leonard S. Brandon East NDP EY LER,Ph il River East NDP FILMON,Ga ry Tuxedo PC FOX,Peter Concordia NDP GOURLAV, D.M. {Do ug ) Swan River PC GRAHAM,Ha rry Virden PC HAMMOND,Ge rrie Kirkfield Park PC HARAPIAK,Ha rry M. The Pas NDP HARPER,Elijah Rupertsland NDP HEMPHJLL,Ho n. Mauree n Logan NDP HYDE, Lloyd Portage la Prairie PC JOHNSTON,J. Fra nk Sturgeon Creek PC KOSTYRA,Hon. Eugene Seven Oaks NDP KOVNATS, Abe Niakwa PC LECUYER,Ho n. Gerard Radisson NDP LY ON,Q.C., Ho n. Sterling Charleswood PC MACKLING,Q.C., Ho n. AI St. James NDP MALINOWSKI,Do nald M. St. Johns NDP MANNESS,Cl ayton Morris PC McKENZJE,J. Wa lly Roblin-Russell PC MERCIER,Q.C., G.W.J. {Gerry) St. Norbert PC NORDMAN,Rur ik {Ric) Assiniboia PC OLESON,Ch arlotte Gladstone PC ORCHARD,Do na ld Pembina PC PAWLEV, Q.C.,Ho n. Howard R. Selkirk NDP PARASIUK, Ho n. Wilson Transcona NDP PENNER,Q.C., Ho n. Rola nd Fort Rouge NDP PHILLIPS,Myr na A. Wolseley NDP PLOHMAN,Ho n. John Dauphin NDP RANSOM, A. Bria n Tu rtle Mountain PC SANTOS,Conrad Burrows NDP SCHROEDER,Hon.Yic Rossmere NDP SCOTT, Do n lnkster NDP SHERMAN, L.R. {Bud ) Fort Garry PC SMITH,Ho n. Murie l Osbo rne NDP STEEN, Wa rren River Heights PC STORIE,Ho n. Jerry T. Flin Flon NDP URUSKI,Ho n. Bill lnterlake NDP USKIW, Ho n. Sa muel Lac du Bonnet NDP WALDING,Ho n. D. James St. Vital NDP LEGISLATIVE ASSEMBLY OF MANITOBA THE STANDING COMMITTEE ON PUBLIC UTILITIES & NATURAL RESOURCES Monday, 25 June, 1984 TIME - 8:00 p.m. MR. CHAIRMAN: Mr. Arnason. LOCATION - Winnipeg , Ma nitoba MR. J. ARNASON: Thank you, Mr. Chairman, and committee Members. CHAIRMAN - Mr. P. Ey ler (River Ea st) lt is that time of year again when I, as President and Chief Executive Officer of Manitoba Hydro, have the ATTENDANCE - QUORUM - 6 opportunity to come before this committee to review Members of the Committee present: the Corporation's activities. 1t is the objective of Management and Staff of Manitoba Hydro to provide Hon. Messrs. Cowan, Parasiuk and Schroeder an economic and reliable utility service to the people Messrs. Enns, Eyler, Fox, Harapiak and of Manitoba. The process of reviewing the corporation's Malinowski activities will assist us in doing our job better. I have with me a number of staff memebers who will APPEARING: Mr. Murray Fraser, Executive Vice­ assist with the presentation and help with the questions President - Corporate Services that may arise during this session. Murray Fraser, Mr. C. Goodwin, Executive Manager - Executive Vice-President, Corporate Services, will Corporate Planning provide information on the financial results as a part Mr. A. Derry, Manager - Power Supply of my presentation. Chris Goodwin, Executive Manager, Planning Corporate Planning, will provide an overview of acitivites Mr. J. Arnason, President related to the Northern Flood Agreement. Mr. M. Elieson, Deputy Minister - Department In addition, with us today is Don Duncan, Vice­ of Energy and Mines President, Engineering and Construction; Will Tishinski, Vice-President, System Planning and Operations; Ralph MATTERS UNDER DISCUSSION: Lambert, Vice-President, Customer Services; Verne Annual Report of Manitoba Energy Authority, Prior, Manager, Public Affairs; Bob Brennan, Group Annual Report of Manitoba Hydro for fiscal year Manager, Financial Services; Art Derry, Manager, Power ended March 31, 1983 Supply Planning; and Paul Thompson of the Power Supply Planning Department. We will do our best to respond to your questions when they are asked. If we do not have all the information with us we will provide it either at a later meeting of the committee or by way of a written MR. CHAIRMAN: I believe the Minister has an opening statement for this evening. response. The purpose of the committee meeting, as I Mr. Parasiuk. understand it, is the consideration of the 32nd Annual HON. W. PARASIUK: Mr. Chairman, last week when Report of Manitoba Hydro-Electric Board for the year we discussed the power sale there were a number of ending March 31, 1983. As has been the custom, questions raised that I think in part, or at least in one however, the committee will be provided with preliminary part I believe, will be answered in the presentation that results from the fiscal year just ended on March 31, Manitoba Hydro has. We indicated some of that last 1984. week. Manitoba Hydro, being primarily a hydro-electric I would propose that we have the presentation from utility, relies heavily on water flows for generating the Manitoba Hydro. If there are outstanding questions bulk of the customers' energy requirements. pertaining to the power sale, then they can be addressed Consequently, the financial results of the utility's and we could have them answered and then we could operations are substantially influenced by weather move on to other parts of the Hydro presentation that conditions. Fiscal year 1983-84 was a good year for people may want to raise. Hydro generation, with water conditions being slightly above average. Av erage water conditions provide an MR. CHAIRMAN: Mr. Filmon. opportunity to produce about 21 billion kilowatt hours of energy per year from the Hydro Electric plants. The MR. G. FILMON: Mr. Chairman, as long as we're not fiscal year ended with total hydraulic generation of 21.9 closing the door to further discussions and questions billion kilowatt hours, exceeded the previous record of of Mr. Eliesen in his capacity as Chairman of MEA and 21.6 billion kilowatt hours established in the fiscal year any others of the resource people that are here. I think 1982-83. it may facilitate it if we get the complete presentation The corporation's revenue was enhanced through the from Hydro and then we can go back to questions. ability of the utility to sell to extra-provincial markets. Because water conditions were good, surplus energy HON. W. PARASIUK: That was our intention of that. sales to neighbouring utilities in Saskatchewan, Ontario, I think we can proceed on that basis and the resources and the United States for the fiscal year just ended, will be here to answer questions as they arise. totalled $105.7 million. 81 Monday, 25 June, 1984 This is a record, slightly exceeding the previous fiscal The final cost of that ice storm was $2.8 million and year ending March 31, 1983, when total export revenue final repairs resulting from it were not completed until was $105.4 million. By comparison, the average annual last September. While there were no severe ice storms extra-provincial revenue for the past five fiscal years, in the past fiscal year, the corporation experienced its that is from March 31, 1980 to March 31, 1984, was worst ice storm in April, 1984, and I will be commenting $92.3 million. The major export market was the United on this matter at the conclusion of this presentation. States, which accounted for over 79 percent of the As a result of repeated experience with ice storms, total exports of approximately 6.8 billion kilowatt hours aP eight-mile section of overhead line was installed for the fiscal year just ended. underground along the Pembina Escarpment between Good water conditions resulted in over 99 percent Manitou and Darlingford. Ths installation was done on of all energy for the integrated system having been a trial basis to assess the comparative costs of rural generated from hydraulic sources. At the year-end the underground with overhead lines and to gain some Nelson River Plants had contributed approximately 76 experience with rural underground installations. For this percent of the total hydraulic energy. one trial installation, which was under ideal weather A new fiscal-year record was established when total conditions, it was determined that rural underground integrated system, that is Manitoba Hydro and Winnipeg construction costs exceeded overhead construction Hydro, generation and purchases amounted to 22.1 costs by 60 percent. Consideration is being given to billion kilowatt hours, which was 1.2 percent higher placing additional lines underground. than the previous record of 21.8 billion kilowatt hours Further improvements were made during the year in set in the previous fiscal year. techniques for melting ice accumulated on line The four Nelson River Plants, Kelsey, Kettle Rapids, conductors. Modifications, at a cost of approximately Long Spruce and Jenpeg together established a new $300,000, were made to stations to facilitate the ready fiscal year record in 1983-84 with a total output of 16.6 application of ice melting techniques.
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