IERN International Energy Regulation Network

The generation sector is partially privatised.

Manitoba Hydro, a Crown corporation owned by the Province of Manitoba and governed by the Manitoba Hydro-Electric Board, owns and operates virtually all segments of the electricity industry in Manitoba. It is the province's sole electrical utility.

About 98 percent of the provincial generation is hydro based. Manitoba Hydro also owns one coal-fired, four natural gas-fired thermal units and a wind farm. Some diesel generation is located in remote areas, which are not connected to the transmission grid.

There are also a few small generation facilities owned by local industry.

There are 12 interconnections between Manitoba and adjacent provinces and states. In most years, Manitoba is a net exporter. Typically about 30 percent of Manitoba’s generation is sold to Canadian and U.S. markets.

Manitoba’s transfer capacity to other provinces is constrained, with Ontario and Saskatchewan typically limited to 200 MW and 375 MW respectively. Interconnections between Saskatchewan and Alberta are also limited, restricting exports from Manitoba to Alberta through Saskatchewan. Export capacity to U.S. markets is considerably larger, at approximately 1 850 MW.

Although Manitoba Hydro has not relinquished control of its system to MISO, as U.S. entities are required to do, it signed a coordination agreement with MISO in 2001 and is participating in the day-ahead and real-time markets introduced by MISO in April 2005.

Manitoba exports electricity to over 30 electric utilities through its participation in four wholesale markets in Canada and the mid-western U.S. Export power sales to other provinces and the U.S. contributed to a record revenue in 2005-2006 of $415 million.

A single buyer model is adopted for the province wholesale market and price are regulated by the Manitoba Public Utilities Board.

The sector is publicly-owned.

The transmission system in Manitoba, owned and operated by Manitoba Hydro, is substantial as the bulk of its hydro-power is produced along the Nelson River System in the north of the province. It allows the transport electricity to southern load centres.

In 1997, Manitoba Hydro published its non-discriminatory OATT generally in keeping with the pro-forma U.S. FERC tariff. This OATT allows third party use of the Manitoba transmission system, providing capacity is available, and facilitates reciprocity for those third party users.

The sector is publicly-owned.

Retail electricity rates are regulated by the Manitoba Public Utilities Board.

Retails and supply markets are not opened.

The sector is publicly-owned.

No production field in Matitoba. Most of the natural gas you use comes from Western Canada, through a major transportation pipeline system, to the Centra Gas distribution facilities in Manitoba.

The cost of wholesale natural gas is subject to changing market prices as most natural gas is purchased from sources in Western Canada. Generally, prices are based on North American market prices.

Single buyer model is adopted for Matitoba wholesale market.

The sector is publicly-owned.

Manitoba Hydro through Centra Gas natural gas to residential and industrial consumers through the network of pipelines and equipment that it owns and maintains.

Distribution prices are regulated.

Vertically integration.

The sector is partially privatised.

Centra Gas is a regulated utility that delivers natural gas and provides related utility services. Centra Gas can obtain Primary Gas for its customers. In addition, it supplies Supplemental Gas and is responsible for providing backstopping and bridging services to all customers.

Primary gas supply may be purchased from Centra Gas or from natural gas marketers or brokers, which are independent companies that arrange alternate rates and terms of service for supply of the gas commodity. Natural gas marketers do not deliver the natural gas or provide utility services.

The Primary Gas supply option offered by Centra Gas is regulated by the Public Utilities Board of Manitoba while gas marketers offer Primary Gas supply at competitive prices to groups of gas users. The market is fully opened.

• The Matitoba hydro has identified 16 potential hydro generation developments for future consideration. These include the 200 MW Wuskwatim Generating Station, the power from which would be surplus to domestic requirements from the proposed in-service date of 2011 until 2020.
• The Clean Energy Transfer Initiative is a joint initiative between Manitoba and Ontario. It would involve development of new hydro generation facilities for the purpose of exporting up to 1 500 MW of additional hydro power to Ontario.

• Manitoba Hydro proposes to construct a new 500 kV HVDC transmission line, east of Lake Winnipeg, for an in-service date of 2012.
• In December 2004, Manitoba Hydro announced a doubling of its DSM PowerSmart program target to reduce peak demand by 640 MW by 2018

Manitoba’s electricity industry faces opportunities and challenges due to the Kyoto Protocol that offers an opportunity for the province to promote its hydro power as renewable.

Federal support through the Partnership Fund, could facilitate proposed projects such as the CETI, which would require significant investment in transmission infrastructure.