The newly appointed Manitoba Hydro-Electric Board says it is left with no choice but to move forward with Bipole III.

At the request of the provincial government, a review was undertaken. The review confirmed that rerouting the line down the east side of Lake Winnipeg is no longer an option. It also determined

that any delay or cancellation of Bipole III would make it impossible to carry the power from the Keeyask Generating Station that is required to deliver upon committed export contracts. Cancelling Bipole III at this stage would cost Manitoba ratepayers more than $7 billion.

Board Chair Sanford Riley says Bipole III is essential to reducing the significant risk of blackouts and service disruptions, should there be a failure of the existing Bipole I and Bipole II. Riley says rerouting Bipole III down the west side of the province was obviously a wrong decision, one forced on Hydro by the previous government.

Manitoba Hydro is now projecting delays of between 12 and 15 months for Bipole III, with costs expected to rise from the current budget of $4.65 billion to as high as $5 billion.

"This imprudent, some would say, reckless, capital spending program has created a severe debt load which is not just placing an incredible strain on the financial stability of Manitoba Hydro but also threatening the bottom line of the entire province," says Riley. "Going forward, the new Board will work on a plan that will allow us to confront the significant financial challenges Manitoba Hydro faces and put the utility back on a solid foundation, rather than continuing down its current path of huge financial risk."

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No Choice But To Move Forward: Manitoba Hydro-Electric Board