Manitoba Hydro: Difference between revisions

Manitoba Hydro

File:Manitoba-hydro.png
Company type	Crown Corporation
Industry	Electricity generation Natural gas distribution [1]
Founded	Winnipeg, Manitoba (1961)
Headquarters	Winnipeg, Manitoba
Key people	Robert B. Brennan, President & CEO
Products	Electricity, Natural gas
Revenue	$ CDN 1,786 million (FY 2003)
Website	www.hydro.mb.ca

Founded in 1961, Manitoba Hydro is the electric power and natural gas utility in the province of Manitoba, Canada. It is a provincial Crown Corporation, governed by the Manitoba Hydro Electric Board and the Manitoba Hydro Act H190 CCSM. Today the company operates 15 interconnected generating stations. It has more than 500,000 electric power customers and more than 250,000 natural gas customers. Since most of the electrical energy is provided by hydroelectric power, the utility has low and stable electricity rates. Stations in Northern Manitoba are connected by a HVDC system, the Nelson River Bipole, to customers in the south.

Abbreviated history

1873-1960 Electric Power before Manitoba Hydro

The first recorded attempt to extract useful work from a Manitoba river was in 1829 at a flour mill (known as Grant's Mill) located on Sturgeon Creek in what is now Winnipeg. This was not successful and the milling equipment was later operated by a windmill.

The first public electric lighting installation in Manitoba was demonstrated at the Davis House hotel on Main Street, March 12, 1873. In 1880 the Manitoba Electric and Gas Light Company was incorporated to provide public lighting and power, and a year later absorbed the Winnipeg Gas Company. In 1893 the Winnipeg Electric Street Railway Company was formed, and initially purchased power from Manitoba Electric and Gas, but by 1898 it had built its own 1000 horsepower generating plant and purchased Manitoba Electric and Gas.

The first hydroelectric plant in Manitoba was built near Brandon in 1900. A 261-foot earth-fill dam was constructed across the Minnedosa River by private investors. The plant only operated part of the year, with the load carried in the winter months by steam generators.

By 1906 Winnipeg Electric Street Railway had constructed a hydroelectric plant on the Winnipeg River near Pinawa, and seventy miles of 60 kV transmission line. This plant operated year-round until 1951, when it was shut down to allow improved water flow to other Winnipeg River stations. Its remains are still preserved as a Provincial park.

Since the investor-owned Winnipeg Electric Street Railway was charging 20 cents per kilowatthour, the City of Winnipeg founded its own utility in 1906, and developed a generating station at Pointe du Bois on the Winnipeg River (which still operates today). In reaction to this, Winnipeg Electric Street Railway dropped prices to 10 cents per kilowatthour, but the City-owned utility (Winnipeg Hydro) set a price of 3 1/2 cents/kwh which held for many decades.

In 1916 the Province established the Manitoba Power Commission with the object of bringing electric power to communities outside of Winnipeg.

Pointe du Bois Generating Station on the Winnipeg River

All of Winnipeg Hydro, Winnipeg Electric Street Railway Co. and the Manitoba Hydro Commission built extensive hydroelectric generating facitilities on the Winnipeg River during the period 1916 through 1928. The Great Depression starting in 1929 put an end to rapid growth until after World War II. The City of Winnipeg utility also built coal-fired steam generators in 1924 at Amy Street. The steam boilers at Amy Street were also used for district heating. During WWII electric boilers at Amy Street used surplus hydroelectric power to economize on coal consumption. The City utility also implemented load management on electric water heaters, which allowed them to be turned off during the day and during peak load periods.

A new utility was set up by the Province in 1949, the Manitoba Hydro Electric Board. It acqired the assets of the Winnipeg Electric Street Railway Co. in 1953. The MHEB was tasked with bringing electric power to the rural parts of Manitoba, a task which took until around 1956 to substantially complete.

By 1955 there were three utilities in the province:

• Manitoba Power Commission (Provincial Government)
• Manitoba Hydro Electric Board (Provincial Government)
• Winnipeg Hydro Electric System (Winnipeg governmnet).

Between 1955 and 1960 studies were carried out to determine what resources would be available for future hydraulic generation. Two thermal (coal-fired) stations were built at Brandon and Selkirk.

In 1957 the first transmission line between Manitoba and North-West Ontario was installed. In 1960 a 138 kV connection to Saskatchewan Power Corporation was completed, and it was later uprated to 230 kV.

1961 to date: the Manitoba Hydro era

The Manitoba Power Commission and Manitoba Hydro Electric Board merged in 1961 to form the organization known as Manitoba Hydro.

The last of the private mine-owned utility systems at Flin Flon was purchased by Manitoba Hydro in 1973. The early 1970's also marked the installation of tie lines between Manitoba Hydro and utilities in Ontario, Saskatchewan and Minnesota. The interconnection with the American utilities (Otter Tail Power, Northern States Power, and Minkota Power Co-Operative) were used to obtain firm power of 90 MW for the winter of 1970; and since that time these interconnections have also been used for export of energy.

In 1974 Manitoba Hydro was still considering nuclear power. Although two research nuclear reactors existed in the province, no nuclear generating capacity has ever been constructed in Manitoba.

In July 1999 Manitoba Hydro purchased the natural gas distribution company Centra Gas Manitoba.

On September 3, 2003 Manitoba Hydro purchased Winnipeg Hydro, which formerly provided electric power in the downtown area of Winnipeg.

In 2005 a wind farm is under construction near St. Leon, Manitoba. Power generated by this privately-constructed plant will be purchased by Manitoba Hydro for distribution on its network. The capacity of this installation is 99.9 MW, comprising 63 wind turbines of 1.65 MW each. This is the first privately-owned grid-connected generation to be constructed in Manitoba in nearly fifty years. Energy produced by this facility will be subsidized by the Canadian Government's Wind Power Production Incentive.

Generating stations

Name	Power (MW)	Units (No./MW)	First Power (Year)	River (Location)	Average Annual Generation (TWh)	Remarks
Brandon (Steam)	95	1/95	1958	(Brandon)	0.6 (typical peaking only)	Unit 5,Sub-bituminous Coal
Brandon (Combustion Turbine)	260	2/130	2002	(Brandon)	0.05 (typical peaking only)	Units 6/7, Natural Gas/Diesel backup Simple Cycle
Grand Rapids	472	4/120	1965	Saskatchewan	1.54	First station built under Manitoba Hydro name, frequency control for Manitoba, 36.6 m head, 1500 m³/s per unit
Great Falls	131	6/varying	1922	Winnipeg	.75	Ex Winnipeg Electric Railway Co., 17.7 m head, 883 m³/s each unit
Jenpeg	97	6/ 16	1979	Nelson	0.9	USSR Bulb Turbines
Kelsey	211	7/30	1957	Nelson	1.8	Ex INCO, 17.1 m head, station 1713 m³/s
Kettle	1228	12/103	1970	Nelson	7.1	30m head, 370 m³/s each unit
Laurie River 1	5	1/5	1952	Laurie	0.03	Ex Sherrit Gordon, 16.8 m head
Laurie River 2	5	2/2.5	1958	Laurie	0.03	As for LR 1
Limestone	1340	10/135	1990	Nelson	7.7	5100 m³/s total
Long Spruce	1010	10/100	1977	Nelson	5.8	26 m head, 4580 m³/s
McArthurFalls	56	8/7	1954	Winnipeg	0.38	7 m head, 966 m³/s
Pine Falls	82	6/14	1952	Winnipeg	0.62	11.3 m head, 917 m³/s
Pointe du Bois	78	16, varying sizes	1911	Winnipeg	0.6	Ex Winnipeg Hydro, 8.4 MW Straflo installed 1999, 14 m head
Selkirk (Steam)	121	2/60	1958	(Selkirk)	0.3	Natural gas since 2002
Seven Sisters	165	6	1931	Winnipeg	0.99	18.6m head, 1146 m³/s
Slave Falls	67	8/8	1931	Winnipeg	0.52	Ex Winnipeg Hydro
Diesel Plants	4	12/various	-	Brochet,Lac Brochet, Tadoule Lake, Shamattawa	0.01	Diesel fuel, not on grid

Generating station total ratings are approximate. Water flow conditions and station service load may account for some of the difference between rated station output and total unit nameplate rating. In a typical year the hydroelectric plants produce more than 95% of the energy sold.

Transmission

AC system

Manitoba Hydro operates an extensive network of more than 9000 km of ac transmission lines. Transmission voltages in use include:

• 66 kV
• 115 kV
• 138 kV
• 230 kV
• 500 kV

Distribution voltages include 4160 V especially in urban Winnipeg, 12.47 kV and 25 kV, usually on overhead conductors but often in buried cables. Total length of distribution lines is over 80,000 km.

Transmission lines built in Manitoba must withstand a wide temperature range, ice, and occasional high winds. In 1997 a tornado blew down 19 transmission towers of the HVDC system north of Winnipeg, reducing transmission capacity from the North to a small fraction of system capacity. During the several days required for utility employees to repair this line, power was imported from the United States over the 500 kV interconnection. As a consequence, though some major industrial customers were requested to curtail energy use, disruption for most customers remained small.

DC system

A large portion of the energy generated on the Nelson river is transmitted south on the HVDC Nelson River Bipole system. The two transmission lines, each nearly 900 km long, operate at +/- 450 kV and +/- 500 kV DC, with converter stations at Gillam and Sundance, and the receiving terminal near Rosser. The combined capacity of the two HVDC lines is 3420 MW, or about 68% of the total generation capacity in the province.

Exports

Manitoba Hydro has transmission lines connecting with Saskatchewan, Ontario, North Dakota and Minnesota. Ties to the Canadian provinces are of low capacity but a substantial portion of Manitoba Hydro's annual generation can be exported over the tie to Minnesota. In 2003 a new line was completed to the United States, allowing a firm import capacity of 700 megawatts.

Natural gas customers

Manitoba Hydro has about 239,000 residential, 16,000 commercial and 400 large industrial customers. In fiscal 2003 total gas revenues were $497 million (Canadian) on 2,123 million cubic metres of gas. Residential consumers account for about 42% of Manitoba gas consumption.

Recent and current projects

Manitoba Hydro has a capital spending program intended to maintain and extend capacity for Manitoba customers, for environmental protection, and to allow export of energy surplus to Manitoba needs to stabilize rates. Some of these projects include:

• Power Smart: Manitoba Hydro has operated a Power Smart program since 1991. This project identifies energy conservation and efficiency opportunities for residential, commercial and industrial customers. Measures such as high-efficiency electric motors and improved lighting have offset 292 MW of peak load growth and up to 631 million kwh per year of energy consumption.
• Brandon Combustion Turbines: In 2003 Manitoba Hydro commissioned two simple-cycle gas turbine generating units at the existing plant in Brandon. These natural gas-fuelled units are intended to provide peaking power and supplemental capacity in case of low water levels.
• Selkirk Natural Gas Conversion: In 2003 the fuel supply of the Selkirk steam boilers was converted to natural gas. While this is a more expensive fuel than the coal previously used at this plant, it allows the life of the station to be extended without the capital cost required to clean coal emissions up to current standards.
• Wind Energy Survey: While Manitoba Hydro is in the process of completing a wind energy survey at five locations, private developers have initiated a wind farm at St. Leon. Manitoba Hydro has not announced an in-service date for additional utility-owned wind generation.
• Wuskwatim Project: Manitoba Hydro has obtained an environmetal licence for the Wuskwatim generating station, to be built on the Burntwood River near Thompson. This 200 MW station will have three hydraulic turbine generator units and will have only a small reservoir. This project had the most extensive environmental review of any generating project in Manitoba. Participation of the Nisichawaysiuk Cree Nation (NCN)aboriginal community, if passed by a referendum by NCN members, will allow advancement of the in-service date to 2011 and opportunities for additional export revenue. Otherwise the load growth would not require this new capacity until several years later.
• New Hydraulic Generation (Gull, Conawapa,Notigi) and HVDC Transmission (Bipole III): Studies are continuing to permit eventual construction of new generating projects along the Nelson River and on the Burntwood River. The Gull (now known as Keeyask) station will have a capacity of approximately 630 megawatts and planning studies are continuing.Projected first power date is in 2012, but no final design or construction decisions have been made.

The 1380 megawatt Conawapa project was initiated but postponed indefinitely in 1992 when Ontario Hydro elected not to purchase firm energy from Manitoba. Planning activities now underway are intended to allow for an in-service date of 2017, but no construction commitment has been made and no environmental hearings are currently scheduled. The in-service date would be after that for Wuskwatim and Gull.

The station at Notigi would be rated approximately 100 Megawatts but no in-service date has been set for this project.

At least 1500 megawatts of other capacity is technically feasible to develop on the lower Nelson, but these developments would require a large increase in electric power exports since Manitoba load growth will not require this capacity for a generation or more. All these projects require additional HVDC transmission capacity from the North to the South. One such project, Bipole III, has been discussed with communities on the east side of Lake Winnipeg, but this area is ecologically and culturally sensitive and power line construction will require extensive environmental impact assessment.

Controversies and issues

Like any other large-scale activity, the operations of Manitoba Hydro have not been without controversy.

In 1976, the Churchill River diversion project was set into operation. Flow was diverted by a series of channels and control structures into the Nelson River. The effects of this diversion on pre-existing water levels and the indigenous Cree and Métis people continue to be felt to this day. Negotiations between the affected Northern communities and Manitoba Hydro continue, to discuss mitigation measures and compensation for loss of traditional resource areas and sites.

The water level of Lake Winnipeg is now regulated by Manitoba Hydro as part of the energy generation operations. Some property owners on the southern edge of the lake feel that the levels are now maintained at a higher average level than would be natural, and attribute erosion of their property to the lake level. Manitoba Hydro has pointed out that the regulation project also allows lake level to be lowered, such as during the 1997 floods, thereby preventing significant property damage.

Residents of the area around the Selkirk steam plant attributed various environmental damage to the continued operation of this plant, which at the time was fuelled by coal. Manitoba Hydro has converted this plant to natural gas, which, while a more expensive and faster-depleting energy source than coal, burns with lower emissions of heavy metals, sulfur dioxide, and carbon dioxide.

The Province of Manitoba charges Manitoba Hydro a water rental fee proportionate to the total volume of water passed through the generating stations. Increases in this rental have provided an important stream of non-tax revenue to the Provincial government. As well, since 2002 the New Democratic Party provincial government announced that it was planning to collect a direct dividend from Manitoba Hydro "excess" profits. This was criticized by the provincial opposition parties since they felt it allowed excess spending by the government.

Manitoba Hydro has studied new HVDC transmission lines to run along the east edge of Lake Winnipeg. The additional transmission capacity would be required to develop stations at Gull (Keeyask), and Conawapa. This plan would offset the concentration of transmission lines in the area West of Lake Winnipeg, and would provide additional security against transmission failures due to adverse weather or other causes. However, this area has no roads and very little development; some environmentalists argue that this vast area of boreal forest should not be crossed by a transmission corridor. Roads associated with the line would allow year-round access to small communities east of the lake; some people feel this would have more adverse than beneficial effects for these communities. In May 2005 the provincial government announced that it would not consider any route along the East side of Lake Winnipeg, even though the alternative routes through the Interlake region of Manitoba would extend the transmission lines, increase cost, and provide less security of transmission than the East side corridor.

Comparision of Manitoba Hydro with other utilities

Manitoba Hydro is unusual in North America because it is the sole commercial provider of electrical power in the province of Manitoba. It is a Crown corporation closely regulated by the Provincial government. This status arose because of the history of electrification in the Province, where early commercial developers emphasized private profit, limiting the economic benefits that electrification would bring. Manitoba Hydro is required by its regulating legislation to give priority to public benefit over profit.

Another unusual feature of Manitoba Hydro is that it is a completely integrated electrical utility, with generation, transmission, and distribution operations. This means that Manitoba Hydro can consider the total system cost and benefits of any new development, rather than, for example, building generation capacity that relies on a second party for transmission. An example of this approach was seen at the hearings for the recent Wuskwatim Generating Station project, in which environmental review for both the generating station and associated transmission facilities were carried out at the same time.

Manitoba Hydro's mandate to serve dictates that it builds enough transmission and generating firm capacity to serve the Manitoba home market first. However, in a typical year, more energy is available than the firm capacity. This can be economically exported from the Province. Since this energy is typically sold on short-term contracts or even on a spot market, the returns on these sales increase Manitoba Hydro's retained earnings, allowing domestic rates to be stable and low.

Since Manitoba Hydro is a Crown Corporation not obligated to provide a return on investment to shareholders, energy costs to industrial and residential consumers are lower than they would otherwise be. These lower costs help offset some of the higher costs of doing business in a region far from large markets.

The company today

Today Manitoba Hydro serves a peak Manitoba electrical load of nearly 4000 megawatts. Electrical supply was nearly 22 terawatthours, with total revenues of $1.78 billion (Canadian). Export sales were considerably lower than in 2001, due to drought conditions and low water flows. The company also delivered 2.1 billion cubic metres of natural gas, which contributed $587 million (Canadian) to revenues.

Manitoba Hydro had 5300 employees at the end of 2003. Capital assets were valued at nearly $10 billion (Canadian).

In fiscal 2003 (ending March 31, 2004), the total generation was 19.3 terawatthours. Due to low water levels, about 7 TWh were imported to meet a Manitoba domestic consumption of 21.9 TWh. In 2001 generation was nearly 32.7 terawatthours, allowing net export of 12 TWh to customers in the United States, Ontario and Saskatchewan. Water levels for FY2004 are expected to be more typical, allowing Manitoba Hydro to resume its usual position as a net exporter of electrical energy. A terawatthour is the average annual consumption of 70,000 Manitoba residences,14,100 kWh per year each.

On the evening of January 15, 2005 Manitoba Hydro set a new record for demand of 4,223 MW, with a total interconnected generating capacity of approximately 5000 MW.

A subsidiary company, Manitoba Hydro International, provides electric power consulting services. Manitoba Hydro also operates a high-voltage DC laboratory.

See also

Crown corporation

Electric power

Environmental concerns with electricity generation

Hydroelectricity

List of Canadian electric utilities

References

• L. A. Bateman, "The Manitoba Utility Story - Day 1 to Year 1974", paper in Canadian Electricity Association, "Proceedings of the Eighty-Fourth Annual Meeting 1974", Banff Springs Hotel, Banff, Alberta
• L. A. Bateman, "A History of Electric Power Development in Manitoba" printed in the Winter 2005 edition of "IEEE Canadian Review"
• Manitoba Historical Society History of the Electrical Industry in Manitoba
• Manitoba Hydro Annual Report 2003
• http://www.hydro.mb.ca Manitoba Hydro Corporate Web Site
• Manitoba Clean Environment Commission Web Site
• The Manitoba Hydro Act H190, CCSM
• http://www.hvdc.ca High Voltage DC Laboratory
• Ecological impacts of Manitoba Hydro operations on Hudson Bay, includes a map of Manitoba Hydro generation facilities