Manitoba taxpayers scored a small victory after Manitoba Hydro and Centra Gas conceded to public hearings before the nationalization of the gas utility is concluded. The Canadian Taxpayers Federation-Manitoba and many of its supporters pressed the Public Utility Board, with a letter and petition campaign, to hold a public review of the transaction, including public hearings.

Manitoba Hydro president Bob Brennan now says that the sale of Centra Gas to Manitoba Hydro will be conditional on the PUB's approval. This stands in stark contrast to comments he made in March this year disputing the PUB's jurisdiction over the transaction. The upcoming review was spurred by taxpayer support for due diligence and a public process to ferret out the facts of this landmark sale.

The advantage of public hearings is that all interested parties will have the opportunity to register their concerns. By weighing the evidence on both sides of the debate, the PUB will be better equipped to make a ruling on the proposed transaction.

The PUB has now called upon individuals and groups to set the terms of reverence for the hearings. What issues should be included in the board's review of the transaction The CTF-Manitoba responded with the following list of issues to be reviewed:

• Debt impact - How will the transaction affect Manitoba Hydro's debt burden What are the exact borrowing requirements for the transaction and other debt and tax liabilities incurred What is the plan for debt amortization
  
• Rate impact - How will the accumulation of debt from the transaction impact rate structures
  
• Taxes - How will the Province recover the revenue forfeited from corporate income taxes previously paid by Centra Gas What taxes will the new corporation pay and be exempt from paying
  
• Cost Savings - What are the specific plans to streamline the $12 million in administrative savings between the two utilities
  
• Competition - In the absence of competition between a two power utilities - Manitoba Hydro and a Centra Gas, how will the new power utility maintain efficiencies Describe the relationship between Manitoba Hydro and other gas retailers in Manitoba
  
• Conflict of Interest - Given that the PUB and Manitoba Hydro are government created bodies, can the PUB protect its impartiality and neutrality when balancing the interests of ratepayers and Manitoba Hydro for fair gas rates
  
• Risk - In the event of a business loss, will cost recovery be passed along to the ratepayer exclusively
  
• Gasification - What are the long-term gasification plans for the province Will the buyout affect the development rate of gasification
  
• Cross- subsidization - Will cross-subsidization between the electric utility and the gas utility be permitted How would cross-subsidization impact rates
  
• Will the formation of the new utility impact the existing sales relationship with Winnipeg Hydro

These question and others need to be ironed-out before taxpayers will be satisfied that the nationalization of the gas industry is a good deal for Manitoba.