MANITOBA SECTION    
WATER AND ECONOMIC DIVERSIFICATION    
           
 

Hydro power, Manitoba’s economic edge

Historically Manitobans have enjoyed some of the lowest power rates in Canada and the U.S. This is a significant consideration when it comes to locating a business in the province. This has been possible in the past because of a series of hydro power plants on the Winnipeg River and more recently because of large hydro projects on the Nelson River.

Industrial electricity rates in Manitoba range from 15 to 40 percent below those in Saskatchewan or Alberta. The reason for this price advantage is straight forward; Manitoba generates nearly all of its electricity using hydro while Saskatchewan and Alberta depend heavily on coal and natural gas. Further, Manitoba has low cost sites for its power plants. At most locations the size of the dams are relatively small thus reducing significantly the cost of concrete and other building materials. The other advantage of hydro is that plants last from 50 to100 years, and water is a renewable resource.

Hydro reservoirs, a mixed blessing

Anyone who has lugged a canoe around rapids or a snowmobile through the bush in northern Manitoba knows that hydro dams and the lakes they create can be a blessing. The portages and bush trails are shorter. One can cover a lot of territory traveling by boat on a reservoir or even more by snowmobile in winter. Hydro reservoirs have become highways for the north.

While reservoirs destroy one form of habitat, they also create new habitat for fish and waterfowl. This can augment the local economy through increased tourism, trapping and fishing.

But hydro reservoirs are not always a blessing. When reservoirs are initially filling, water leaches mercury from the soil which can accumulate in fish. Reservoirs can also flood critical moose and fish habitat, and cause problems such as blockage of fish runs, and fish mortality in turbines. In winter the demand for hydropower is often the highest. High water flows through power stations can cause the ice to shift and crack, allowing water to flow onto the ice below the snow cover. Many trappers and hunters have driven their snowmobiles into snow-covered slush with unhappy consequences. It's no wonder that the debate gets a bit heated when hydro companies propose new power projects.

New challenges, new strategies

The $11-million renovation and expansion for the Food Development Centre in Portage la Prairie is a huge economic boost to the area. The Centre focuses on helping the food industry with food product and process development, food safety and food quality testing. The Centre was the first of its kind in Canada and the project could create as many as 1,400 jobs.

Portage la Prairie has several significant food processors including McCain Foods who employ nearly 500 and has recently expanded their potato processing plant. Simplot is constructing a $120 million potato processing facility just west of the city. But the focus is not only on jobs. Portage spent $40 million upgrading their water treatment system.

DID YOU KNOW?

To date, only about 40% of Canada's hydroelectric
potential has been
developed.