June 20, 2003

KAKABEKA FALLS — Ernie Eves, Ontario’s Premier, and Manitoba Premier Gary Doer today joined forces to develop a clean source of electric power that could help meet Canada’s energy requirements, strengthen its transmission infrastructure and promote energy self-sufficiency.

Eves and Doer officially signed a Memorandum of Understanding to support a feasibility study to be conducted by Hydro One and Manitoba Hydro on the 1,250-megawatt Conawapa hydro generating station, which will be located on Manitoba’s Nelson River. The study will also look at the construction of a high-voltage transmission line between the two provinces.

“Our government is committed to ensuring that Ontarians have a supply of power today, tomorrow and into the future,” said Eves. “Today’s announcement is an important first step in a project that will help us meet those needs and provide tremendous benefits for the people of Ontario and Manitoba.”

“Today’s agreement takes us one step closer to the construction of an east-west transmission corridor and the development of Conawapa,” said Doer. “We are confident that the study will provide the financial and technical justification and sound business case upon which to proceed. We look forward to working with Ontario on this initiative, which will yield significant benefits for both our provinces while helping to meet our commitments under the Kyoto Protocol.”

Construction of the project could create an estimated $5.5 billion in investments, jobs and spinoff opportunities for firms in Manitoba and Ontario. As well, the project could displace as much as one-sixth of the greenhouse gases produced annually by Ontario’s coal-fired generating stations, which are scheduled to be retired by 2015.

The study will evaluate the technical and financial aspects of the project. In addition, both provinces have also agreed to work together on a study that will examine the social and economic aspects of the project. The study should be completed by the end of 2003.

The federal government has indicated its support for the feasibility study and both provinces will continue to work with the government in Ottawa to determine their level of support for the project.

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CONAWAPA HYDROELECTRIC STATION AND TRANSMISSION PROJECT

The proposed Conawapa hydro project would provide 1,250 megawatts of clean electricity, help meet greenhouse gas reduction targets and create investment and employment opportunities in northern Ontario and northern Manitoba — including First Nations communities.

The proposed project calls for the development of a generation station on the Nelson River and a transmission line from the hydro station to Ontario. It could create as much as $5.5 billion in investments, jobs and spinoff opportunities for firms in Manitoba and Ontario.

The Memorandum of Understanding, which was signed today, commits both provinces to support a feasibility study to help determine if the project should move ahead. The study, which will cost approximately $2 million, will be conducted by Manitoba Hydro and Hydro One and will take about six months to complete. It will look at capital costs for both the generating station and the transmission lines, estimated in-service dates and environmental and regulatory requirements.

Manitoba Hydro will examine the generating station and transmission line requirements in Manitoba, while Hydro One will examine the feasibility of a transmission line in northern Ontario.

The Conawapa project could supply as much as five per cent of Ontario’s peak demand and deliver enough electricity to meet the annual demands of over 600,000 households. The project could also displace up to six megatonnes of CO2 annually. That’s about 15 per cent of the annual CO2 emissions produced by Ontario’s fossil-fuel generating stations.

The Conawapa station would be located on the Nelson River, about 800 kilometres north of Winnipeg. The favourable geography means it would require minimal flooding — only about three square kilometres. The amount of flooding required for a hydroelectric project depends on the vertical drop and geography of the site. The river has enough of a drop, enough water flow and steep enough riverbanks to support this 1250-megawatt development with minimal impact.

Both the generating station and transmission lines, if they proceed, would have to meet applicable environmental regulations.

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