Manitoba Hydro Makes Bid to Purchase Winnipeg Hydro

Manitoba Hydro, the fourth largest energy utility in Canada, is attempting to purchase Winnipeg Hydro in a deal that could be worth as much as $290 million.

WINNIPEG, Manitoba (CA) 2002-02-14 [] The tentative agreement also calls for initial payments of $25 million for the first five years, $20 million for the next four years and then annual $16 million payments to the city, as well as construction of a new 400,000- square-foot downtown headquarters. Established in 1906, Winnipeg Hydro was one of the first public utilities in Canada and offers the lowest hydro rates in North America, operating two generating stations and employing 570. Manitoba Hydro has 14 generating stations and about 4,500 employees. Manitoba Hydro provides electricity to 403,000 customers and natural gas to 248,000 while Winnipeg Hydro has about 94,000 customers. Much of Manitoba Hydro’s surplus power is shipped to the United States and the deal would put the company in a position to export even more electricity. The transaction is subject to approvals from the Manitoba Hydro Board, the Province of Manitoba and the City of Winnipeg, which supports the deal. “This is a good financial offer for the citizens of Winnipeg,” said Bob Gannon, CFO for the City of Winnipeg. “We feel that we have received a premium for Winnipeg Hydro because of its strategic value to Manitoba Hydro and the synergies created.”
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