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Manitoba Hydro 2010-11 Annual Report

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Manitoba Hydro 2010-11 Annual Report THE POWER OF VISION Manitoba Hydro-Electric Board 60th Annual Report For the Year Ended March 31, 2011 Cover: A 256-tonne rotor, part of the turbine generator assembly, is lifted into place at the Wuskwatim Generating Station. Back cover: A rotor is readied for placement during construction of the Pointe du Bois Generating Station over 100 years ago. The station will celebrate a century of producing electricity in 2011. July 31, 2011 Honourable Rosann Wowchuk Minister Charged with the Administration of the Manitoba Hydro Act Legislative Building Winnipeg, Manitoba R3C 0V8 Dear Minister: I have the honour of presenting the 60th Annual Report of The Manitoba Hydro-Electric Board, together with the financial statements, for the fiscal year ended March 31, 2011. Respectfully submitted, Victor H. Schroeder, QC Chairman, The Manitoba Hydro-Electric Board Table of contents THE POWER OF VISION Letter of transmittal Table of contents The power of vision 6 For over a century, power planners have turned to Manitoba’s rivers Corporate profile 8 Vision, mission and goals 9 to meet the demand for electricity. And why not? A myriad of drainage Our year at a glance 10 basins converge here, drawing water from a vast area that stretches Financial results 11 Operational statistics 12 from very near Lake Superior to the Rocky Mountains and into South Chairman’s message 14 Dakota. All that flowing water holds an immense amount of energy President and CEO’s message 16 – energy that can be used to generate clean, renewable electricity. Our year in review Harnessing that energy, however, has been no easy task. Planning our power 20 Ensuring our reliability 24 Managing our energy 28 Serving our customers 32 Improving our safety 34 Projects such as the Pointe du Bois Generating Station or the first Protecting our environment 36 Nelson River developments involved daunting engineering challenges Enhancing our relationships 40 Supporting our communities 44 and significant financial investments in the future of this province. But they were built and stand today as testaments to the foresight Corporate governance 48 and ingenuity of the men and women who built them. The benefits Financial review 50 that affordable and reliable electricity have brought to generations of Management’s discussion and analysis 52 Management report 67 Manitobans are their legacy. Auditors’ report 68 Consolidated financial statements 69 Consolidated financial statistics — 10-year overview 98 Operating statistics — 10-year overview 99 Major electric and gas facilities 100 Sources of electrical energy generated and purchased 101 Manitoba Hydro Generating stations and capabilities 101 Manitoba Hydro-Electric Board 102 Manitoba Hydro Senior Officers 103 Glossary 104 THE POWER OF VISION For over a century, power planners have turned to Manitoba’s rivers Today, Manitoba Hydro is building on that legacy. to meet the demand for electricity. And why not? A myriad of drainage basins converge here, drawing water from a vast area that stretches from very near Lake Superior to the Rocky Mountains and into South Dakota. All that flowing water holds an immense amount of energy – energy that can be used to generate clean, renewable electricity. Harnessing that energy, however, has been no easy task. Projects such as the Pointe du Bois Generating Station or the first Nelson River developments involved daunting engineering challenges and significant financial investments in the future of this province. But they were built and stand today as testaments to the foresight and ingenuity of the men and women who built them. The benefits that affordable and reliable electricity have brought to generations of Manitobans are their legacy. THE POWER OF VISION For over a century, power planners have turned to Manitoba’s rivers Today, Manitoba Hydro is building on that legacy. to meet the demand for electricity. And why not? A myriad of drainage basins converge here, drawing water from a vast area that stretches from very near Lake Superior to the Rocky Mountains and into South Dakota. All that flowing water holds an immense amount of energy – energy that can be used to generate clean, renewable electricity. Harnessing that energy, however, has been no easy task. Projects such as the Pointe du Bois Generating Station or the first Nelson River developments involved daunting engineering challenges and significant financial investments in the future of this province. But they were built and stand today as testaments to the foresight and ingenuity of the men and women who built them. The benefits that affordable and reliable electricity have brought to generations of Manitobans are their legacy. Hydroelectric development in Manitoba 1965 - Grand Rapids 1954 - McArthur 1960 - Kelsey 1970 - Kettle 1977 - Jenpeg 1906 - Pinawa 1923 - Great Falls 1951 - Pine Falls 1960 - Selkirk 1977 - Long Spruce 1990 - Limestone 2002 - Combustion turbine plant added to Brandon Generating Station 2019 - Keeyask 1911 - Pointe du Bois 1931 - Slave Falls 1952 - Laurie River I 1957 - Brandon 1971 - Bipole I 1978 - Bipole II 2012 - Wuskwatim 2017 - Bipole III 2024 - Conawapa 1931 - Seven Sisters 1958 - Laurie River II 1951 - Manitoba Hydro-Electric Board formed 1961 - Manitoba Power Commission integrated 1999 - Centra Gas acquired 2002 - Winnipeg Hydro acquired Beginning a century of low rates Harnessing the Nelson River Building a powerful future In 1904, the Winnipeg Electric Railway Company was poised The alderman went ahead and secured development rights to In 1963, another source of electricity for Manitoba was Three years after beginning their study, the federal and In 2011, we are once again turning to Manitoba’s abun- slated to begin in 2012 on a third high voltage direct current to realize a virtual monopoly on the electricity supply in Pointe du Bois Falls on the Winnipeg River in his own name. needed. The Winnipeg River was fully developed and the only provincial governments agreed to proceed with the Phase dant water resources to meet our province’s demand for line that will strengthen Manitoba’s transmission system by Manitoba. The privately-owned company was in the midst of When the city amended its charter in 1906 creating the potential hydroelectric site on the Saskatchewan River was One Development of the Nelson River. The ambitious electricity. The 200-megawatt Wuskwatim Generating providing an additional link to northern generating stations. building the province’s first year-round hydroelectric generat- Winnipeg Hydro Electric System, Cockburn transferred the under construction at Grand Rapids. The governments of undertaking involved four components: construction of the Station, already under construction in partnership with ing station on the Pinawa Channel. And, people rights. Construction of the Pointe du Bois Generating Station Canada and Manitoba agreed to look for the solution. Kettle Generating Station; the Churchill River Diversion; Nisichawayasihk Cree Nation, is expected to begin producing We are investing in the next era of hydroelectric development were concerned. began three years later. Lake Winnipeg Regulation (which would also help relieve a electricity early next year. We are also continuing the plan- now so tomorrow’s generations will continue to benefit from The intent was to develop a plan for powering Manitoba’s recurring high water problem on the lake); and a high voltage ning, design and licensing work related to the future Keeyask a legacy of affordable, reliable and renewable power. At the time consumers in Winnipeg were paying 20 cents Cockburn promised Pointe du Bois would supply electricity growth while creating opportunities for export electricity direct current (HVDC) transmission system that would be one and Conawapa generating stations. Should firm export con- per kilowatt hour for their electricity. Business leaders and to the citizens of Winnipeg for three cents a kilowatt hour. By sales. Options included expanding the province’s coal-fired of the longest in the world. tracts be signed, these projects could be producing electricity politicians of the day worried the high rates would continue, the time the Pointe du Bois Generating Station began produc- thermal capacity, building nuclear facilities or developing the as early as 2019 and 2024 respectively. dampening efforts to attract new industry and manufacturing ing electricity in 1911, the rate had settled at 3.3 cents a lower Nelson River. Widely recognized as an engineering achievement, this HVDC to the city. One of those politicians was John Wesley Cockburn. kilowatt hour. transmission system now carries electricity from three gener- Forecasts show a need for new sources of energy begin- This was not the first time power planners looked north to the ating stations on the lower Nelson River — over 70 per cent ning about 2022. By building new generation a few years in An alderman with Winnipeg’s city council, Cockburn believed One hundred years later, Manitoba’s electricity rates are the Nelson — studies of the massive river date back to 1910. It of the province’s supply — and supports export sales that advance of that need we can capitalize on the demand that the city should build its own generating station. Winnipeg’s lowest in North America due, in part, to the vision of individuals was, however, the first time the energy that flowed between have contributed billions of dollars to the Manitoba economy. already exists outside our borders, helping to reduce the charter, however, did not allow for the city’s participation in
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