1st female Manitoba Hydro president and CEO appointed

Jay Grewal is set to become Manitoba Hydro's first female president and CEO.

The province announced Thursday thatGrewal will replace Kelvin Shepherd in Hydro's top post on Feb. 1.

"Ms. Grewal is a proven leader, with extensive senior leadership experience in the utility, resource and consulting sectors," Crown Services Minister Colleen Mayer said in a news release.

"She will join Manitoba Hydro from Northwest Territories Power Corp., where she currently serves as president and chief executive officer."

Before working at Northwest Territories Power, Grewal held senior executive roles with Capstone Mining, Accenture, B.C. Hydro and CIBC World Markets.

"Ms. Grewal's appointment follows an extensive national search conducted by the Manitoba Hydro-Electric Board," board chair Marina R. James said in the news release.

"We look forward to her bringing new perspectives to Manitoba Hydro, as it moves forward with continuing to provide Manitobans with reliable, cost-effective electricity and natural gas services."

Tough road ahead

Manitoba Hydro's current net debt is more than $19 billion and that number will rise significantly as the utility assumes more debt from the completion of the KeeyaskGenerating Station.

Servicing the staggering debt load could push the Crown corporation close to reporting operating losses in the future.

• Manitoba Hydro's burgeoning debt surpasses $19 billion

Not all the news is bad for Grewal.

The cost estimatesfor two of Manitoba Hydro's largest projects are flowing in a positive direction but still exceed original budgets.

A good construction year at the Keeyask Generating Station has helped the project get on target for a price tag of $8.7 billion, a spokesperson for the Crown corporation said.

The BiPole III transmission line went into service with little fanfare in July and Hydro believesthe controversial power line may come in close to a budget of $4.65 billion set in 2014.

Both infrastructure projects were first estimated at a much lower cost, but as years passed, those target numbers rose substantially.

• Keeyask dam cost could reach $10.5 billion, report warns
• Manitoba Hydro's Bipole III cost shoots up by more than $1B

Keeyask was first projected to cost $6.5 billion and expected to be in service by November 2019.In September2016, Hydro raised its cost estimate to $7.8 billion.

That number was increased to $8.7 billion and in 2017 a consultant (MGF Project Services)was commissioned by the Manitoba Public Utilities Board as part of the PUB hearings into Hydro's proposed rate increase.

MGF's review found the generating station could cost as much as $10.5 billiondue to the "contractor's poor productivity and increased indirect costs" associated with the project.

Grewal may have experience running a utility as president of Northwest Territories Hydro, but the company she will take over is much much larger.

Northwest Territories Hydro had just over $103 million in revenues last year. Manitoba Hydro sales are approaching $2 billion.