January 24, 2012

Manitoba Bipole electrical project could face delays

The Manitoba Public Utilities Board has cited a rising supply of cheap natural gas as a possible source of delay in building the Bipole III transmission project in Manitoba.

The proposed transmission line will cost $3.28 billion and the public utilities board noted that cheap gas has cut electricity prices significantly across North America since 2008, and that other factors such as the Canadian dollar's parity with the US dollar and a decrease in electricity demand in the United States could also negatively impact the Bipole project.

In a January 17 press release, the Manitoba public utilities board explained that it denied Manitoba Hydro’s application for rate increases of 2.9 per cent, and noted that if Manitoba Hydro implemented its preferred development plan of building the Bipole III transmission lines and two new generation stations, Manitoban electricity consumers could end up paying substantially higher rates than those now currently forecast.

JOC DIGITAL MEDIA

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