WINNIPEG: The Canadian Taxpayers Federation calls on the Province to expose Manitoba Hydro to the full scrutiny of the Public Utility Board Act in the wake of today's PUB order that approves the sale of Centra Gas to the electric utility. Currently, the PUB has no jurisdiction over Manitoba Hydro, with the one exception of rate increases that are subject to PUB approval.

"If the new public sector gas utility is insulated form the PUB Act, Manitoba Hydro could incur greater debt, buy-out private sector industries, or run gas lines to non-economical parts of the Province without any form of public accountability," said Victor Vrsnik, Manitoba Director of the Canadian Taxpayers Federation. "In the absence of full competition, the only way to hold Manitoba Hydro's new gas utility accountable is through PUB scrutiny."

Although the CTF is dissatisfied with today's ruling, Manitoba taxpayers and ratepayers score a partial victory providing recommendations by the PUB are adopted by Hydro. The recommendations rule-out cross-subsidization of operations and expect financial records for the electric and gas utilities to be kept separate.

"Our objections at the beginning of the public hearings are for the most part as acute today," said Vrsnik. "We have little confidence that the government's central planning model of the energy industry will deliver any benefit to Manitoba ratepayers and taxpayers."

Manitobans must bear the full risk for the $486 million liability that Manitoba Hydro will incur from the sale. Taxpayers and consumers are on the hook for any errors in judgement by the State-owned gas utility. No shareholders will be around to absorb any losses. If Hydro fails to hit its financial targets, gas rates have no where to go but up.