The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Last week's release of Manitoba Hydro's 2003-04 Annual Report confirmed the government-owned utility incurred record losses of $436 million over the past fiscal year - a year when the utility's debt-to-equity ratio ballooned to a troubling 87:13 and long-term debt topped $7.1 billion. While the NDP cited the recent drought as the main reason for Hydro's losses, Opposition Hydro Critic Bonnie Mitchelson pointed to a July 28th Public Utilities Board (PUB) decision that indicated the NDP's $200+ million raid on the utility was a contributing factor to Hydro's current financial woes. "The PUB's recent hydro rate increase ruling clearly indicated that the Doer Government's $203 million 'dividend' weakened Hydro's financial position back in 2002," said Mitchelson. "The result was that Hydro had no money to cover the losses they incurred due to the 2003 drought." Mitchelson also noted that the PUB ruling recommended that the NDP refrain from any further 'dividends' or 'special payments' until the utility achieved a 75:25 debt-equity ratio - a target that will not be reached for at least a decade and has been made more difficult by the Doer Government's doubling of the province's Water Rental Rate. "Since taking office, the NDP doubled the Water Rental Rate and Provincial Guarantee Fee," said Mitchelson. "Ultimately, these increases take an additional $80 million a year in profits from the utility, which coincidentally is the amount ratepayers will be paying to Hydro through their new rates." "The truth is that it's the Doer Government that has run Hydro's coffers dry, not the drought. If the NDP would keep its hands off Hydro, the utility could once again become profitable and there wouldn't be a need for a rate increase."
