Monday, October 26, 2009

Note to the mystery consultant -- Even Tom Brodbeck thinks you're full of it

Yes, really:

I don't know where this so-called whistleblower is coming from who says Manitoba Hydro is at risk of going bankrupt.

But somebody may want to tell this New York consultant -- whose allegations have triggered an auditor general review of Hydro's operations -- it's virtually impossible for a Crown utility with a monopoly selling electricity in Manitoba to become insolvent.

The consultant, who refuses to disclose her identity or the name of her consulting firm, claims Hydro has mismanaged its financial affairs so badly, the Crown corporation could be in jeopardy of going belly-up.

She doesn't give specifics on how that could possibly happen, but insists it could happen.

It can't.

From here. Anyone still think this is possible?


Regan Wolfrom said...

Since you asked, here's what I posted in the Comments section under Brodbeck's column:

No matter what the content of the whistleblower's reports, the information that was already provided to the Public Utilities Board by Manitoba Hydro show that there are serious questions regarding future supply based on expected increases in domestic demand (as opposed to export demand).

In addition, Hydro may end up with as much as $25 billion of debt, and the increase in rates that may be required could involve a doubling or even tripling of our current 6.25¢/kW.h residential rate. This may be more than the PUB is willing to approve, and if so the provincial government could need to bail out Hydro in coming years.

More info:

unclebob said...

I would be less concerned about the level of debt or the calculations of selling price with currency fluctuations.

I would be very, very concerned about the nature of take or pay arrangements which are definitely not yet public. These are extremely dangerous and I do not trust the level of sophistication within hydro to negotiate favourably against the Americans