Manitoba Hydro says aging infrastructure poses threat to future power supply, requires billions in fixes
The report, presented to the Public Utilities Board as part of its rate application for 2024-25 fiscal year, warned it must start spending the additional funds for "the foreseeable future to sustain an ever-growing and continuously degrading asset base." This degradation has been compounded by an existing maintenance and replacement schedule that is not keeping up with the demands, the Crown corporation warns. The combined effect of aging infrastructure and inadequate maintenance, which include both maintenance backlogs and cancellations, has led to an increasing number of service failures and power outages."An increasing amount of degraded asset failures are occurring," the report states.
The pending capacity crunch has already led Hydro to warn it can not provide electricity to every new high-intensity industrial customer that wants to connect to its power grid — and warn actual shortages are possible within five years.
"We also must plan for expansion of the system to meet customer demands and help ensure economic growth in Manitoba." Manitoba's NDP government, meanwhile, has pledged to keep Manitoba Hydro rates affordable for consumers. Premier Wab Kinew said that goal can be achieved at the same time Hydro replaces aging infrastructure and builds up generating capacity.