First Session- Thirty-Seventh Legislature of the Legislative Assembly of Manitoba Standing Committee on Public Utilities and Natural Resources Chairperson Ms. Linda Asper Constituency of Riel Vol. L No. 5 - 10 a.m., Friday, July 14, 2000 ISSN 0713-9454 MANITOBA LEGISLATIVE ASSEMBLY Thirty-Seventh Legislature Member Constituency Political Affiliation AGLUGUB, Cris The Maples N.D.P. ALLAN, Nancy St. Vital N.D.P. ASHTON, Steve, Hon. Thompson N.D.P. ASPER,Linda Riel N.D.P. BARREIT,Becky, Hon. Inkster N.D.P. CALDWELL, Drew, Hon. Brandon East N.D.P. CERILLI,Marianne Radisson N.D.P. CHOMIAK,Dave, Hon. Kildonan N.D.P. CUMMINGS, Glen Ste. Rose P.C. DACQUAY, Louise Seine River P.C. DERKACH, Leonard Russell P.C. DEWAR, Gregory Selkirk N.D.P. DOER, Gary,Hon. Concordia N.D.P. DRIEDGER, Myrna Charleswood P.C. DYCK,Peter Pembina P.C. ENNS, Harry Lakeside P.C. FAURSCHOU,David Portage Ia Prairie P.C. FILMON, Gary Tuxedo P.C. FRIESEN, Jean, Hon. Wolseley N.D.P. GERRARD, Jon, Hon. River Heights Lib. GILLESHAMMER, Harold Minnedosa P.C. HELWER, Edward Gimli P.C. HICKES,George Point Douglas N.D.P. JENNISSEN, Gerard Flin Flon N.D.P. KORZENIOWSKI,Bonnie St. James N.D.P. LATHLIN,Oscar, Hon. The Pas N.D.P. LAURENDEAU, Marcel St. Norbert P.C. LEMIEUX, Ron, Hon. La Verendrye N.D.P. LOEWEN,John Fort Whyte P.C. MACKINTOSH, Gord, Hon. St. Johns N.D.P. MAGUIRE, Larry Arthur-Virden P.C. MALOWAY,Jim Elmwood N.D.P. MARTINDALE, Doug Burrows N.D.P. McGIFFORD,Diane, Hon. Lord Roberts N.D.P. MIHYCHUK, MaryAnn, Hon. Minto N.D.P. MITCHELSON, Bonnie River East P.C. NEVAKSHONOFF, Tom Interlake N.D.P. PENNER, Jack Emerson P.C. PENNER, Jim Steinbach P.C. PITURA, Frank Morris P.C. PRAZNIK,Darren Lac du Bonnet P.C. REID, Daryl Transcona N.D.P. REIMER, Jack Southdale P.C. ROBINSON, Eric, Hon. Rupertsland N.D.P. ROCAN, Denis Carman P.C. RONDEAU,Jim Assiniboia N.D.P. SALE,Tim, Hon. Fort Rouge N.D.P. SANTOS, Conrad Wellington N.D.P. SCHELLENBERG,Harry Rossmere N.D.P. SCHULER, Ron Springfield P.C. SELINGER, Greg, Hon. St. Boniface N.D.P. SMITH, Joy Fort Garry P.C. N.D.P. SMITH, Scott Brandon West STEFANSON, Eric Kirkfield Park P.C. N.D.P. STRUTHERS, Stan Dauphin-Roblin TWEED,Mervin Turtle Mountain P.C. N.D.P. WOWCHUK,Rosann, Hon. Swan River 95 LEGISLATIVE ASSEMBLY OF MANITOBA THE STANDING COMMITTEE ON PUBLIC UTILITIES AND NATURAL RESOURCES Friday, July 14, 2000 TIME - 10 a.m. Madam Chairperson: Will the Standing Com­ mittee on Public Utilities and Natural Resources LOCATION- Winnipeg, Manitoba please come to order. This morning the Standing Committee on Public Utilities and Natural CHAIRPERSON- Ms. Linda Asper (Riel) Resources has several reports before it. VICE-CHAIRPERSON- Mr. Harry They are as fo llows: the annual reports fo r Schellenberg (Rossmere) the Manitoba Hydro-Electric Board fo r the years ending March 31, 1998 and 1999, as well as the ATTENDANCE -11- QUORUM- 6 annual reports fo r the Crown Corporations Council fo r years ending December 31, 1994, Members of the Committee present: 1995, 1996, 1997, 1998 and 1999. Hon. Mr. Selinger How does the Committee wish to proceed this morning with regard to these reports? Does Mr. Aglugub, Ms. Asper, Ms. Cerilli, Mr. the Committee wish to proceed with all of the Dewar, Mrs. Driedger, Ms. Korzeniowski, reports of each separate corporation, and in Messrs. Loewen, Maguire, Schellenberg, which order shall the reports be considered? Schuler Mr. John Loewen (Fort Whyte): I believe we APPEARING: are prepared to deal with all of the reports. I think we would like to deal with them all Mr. Bob Brennan, President and Chief individually, but we will certainly fo cus on the Executive Officer, Manitoba Hydro-Electric more relevant ones and certainly the 1999 Board reports. Mr. Vic Schroeder, Chairman, Manitoba I suggest that we stick to the order and go Hydro-Electric Board with Manitoba Hydro. I know they have a pre­ sentation. We have discussed with the Minister Mr. Arthur Mauro, Chairman, Crown the possibility of having the Crown Corporations Corporations Council Council here for 11:30. If at that point we are not finished with Hydro, if maybe we could break Mr. Garry Hoffman, President and Chief because I think we are prepared to go through Executive Officer, Crown Corporations the Crown Corporations fa irly quickly. Council MATTERS UNDER DISCUSSION: I know some of the members have some more questions on Hydro. Hopefully, we will get Annual reports fo r the Manitoba Hydro­ done by then, but just in case, if we could work Electric Board fo r the years ending March it that way, that would be fine. Then I would 31, 1998 and 1999 suggest that we have the Committee sit till 12:30. Annual reports fo r the Crown Corporations Council fo r years ending December 31, 1994, 1995, 1996, 1997, 1998 and 1999 Madam Chairperson: That would be the next item. Let us just finish this one. Mr. Dewar, did * * * you wish to? 96 LEGISLATIVE ASSEMBLY OF MANITOBA July 14, 2000 Mr. Gregory Dewar (Selkirk): We are pre­ Mr. Loewen: Yes. That sounds fine. pared to agree with the Member for Fort Whyte, but I believe the time line of the Committee Madam Chairperson: It is agreed then. Thank should be we will sit until noon. you. Presentation? Madam Chairperson: Could we deal with that Floor Comment: We will do the presentation. next, please? We are on the issue of the order here. Is there anything else then on the order of Madam Chairperson: Okay. In terms of the the reports? Hearing nothing, is it agreed? record then, I would like to inform the Com­ [Agreed] mittee that officials from the Manitoba Hydro­ Electric Board have prepared a PowerPoint Fine. Now, gentlemen, does the Committee presentation that they wish to use as part of their wish to indicate how long it wishes to sit? opening statement. The Committee has granted consent to allow this presentation to occur. Mr. Loewen: I would suggest 12:30. We cer­ Agreed? [Agreed]Thank you. tainly anticipate that we will be finished before then, but I would like to make sure that we pass Mr. Bob Brennan (President and Chief all the reports today, is our intention, and that Executive Officer, Manitoba Hydro-Electric will just give us a little flexibility in case we are Board): What I propose to do is briefly review running close. some of the issues facing Manitoba Hydro right now and some of the major challenges we have Mr. Dewar: Agreed. today, just to make sure the Committee is aware of them in some fashion. It might put everything Madam Chairperson: Agreed? [Agreed} The in some kind of perspective. So what I propose first reports to be considered then are the annual to do is quickly go through the vision, mission reports of the Manitoba Hydro-Electric Board and goals of the corporation, a little bit about our for the years ending March 31, 1998 and 1999. corporate profile, where we are financially now Does the Minister responsible then have an and what the future looks like for the corpora­ opening statement, and would he please intro­ tion, some industry comparisons and then some duce the officials in attendance from the of the current issues. Manitoba Hydro-Electric Board? Our corporate vision is to be recognized as Hon. Greg Selinger (Minister charged with the best utility in North America with respect to the administration of The Manitoba Hydro safety, rates, reliability and customer satis­ Act): Yes. Thank you, Madam Chairperson. The faction, and to be considerate of all people with Chairperson of the Board is Vic Schroeder. The whom we have contact. We keep revising our President of the corporation is Bob Brennan. corporate strategic plan annually, and we make They are at the table, and they have some modest changes to it every year, but this has additional officials with us today. With the con­ been basically the substance to it for the last four sent of the Opposition, we would like to com­ or five years. mence by giving a presentation that has been prepared which might deal with a lot of the ques­ tions and give people a good overview and Our corporate mission is right out of the Act context in which we can frame the discussion of pretty well. It is to provide for the continuance this Crown corporation. of the supply of power adequate for the needs of the province and to promote economy and effi­ ciency in the development, generation, trans­ I would not like to make an opening mission, distribution of it, and at the same time, statement. I would rather go to the presentation, to promote the end use of energy and market which I think will be more informative. energy and related products and services both inside and outside the province. The last part of Madam Chairperson: Mr. Loewen, would you the corporate mission was added when we be agreeable with that? changed the Act in 1997. July 14, 2000 LEGISLATIVE ASSEMBLY OF MANITOBA 97 The corporate goal is to continuously about 600 employees there. There are 7200 improve safety in the work environment. We kilometres of pipeline, that is both transmission have had this as our No. 1 goal for some time and distribution, and last year for the eight now. Certainly, our employees deal with a pro­ months, we had revenues of $270 million and duct that can be hazardous if it is not treated in assets in excess of $460 right on the balance the right fashion.