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The Manitoba Hydro Amendment Act

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S.M. 1997, c. 55

THE MANITOBA HYDRO AMENDMENT ACT


 

(Assented to June 28, 1997)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. H190 amended

1         The Manitoba Hydro Act is amended by this Act.

2         Section 1 is amended

(a) by repealing the definition "corporation" and substituting the following:

"corporation" means The Manitoba Hydro-Electric Board continued by this Act and otherwise referred to as Manitoba Hydro;

(b) in the definition "works", by striking out "transformation,"; and

(c) by adding the following definitions in alphabetical order:

"customer" includes any user or purchaser of power or any potential user or purchaser of power; (« client »)

"fuels" means all forms of energy other than electrical power, and includes, without limitation, natural, manufactured and mixed gas, liquefied petroleum gas, oil and coal; (« combustibles »)

"interconnection works" means property, including land and works, upon or adjacent to the boundary line between Manitoba and any other province or any state of the United States and situated in Manitoba or in that other province or state, or partly in one and partly in the other of them; (« ouvrages d'interconnexion »)

"related business venture" means

(a) a business venture to assist the corporation in carrying out its purposes and objects,

(b) a business venture through which the corporation can market its products, services and expertise,

(c) a business venture through which the corporation can utilize its property, or acquire and utilize other property to enhance the utilization of its property, for secondary purposes, or

(d) any business venture related to fuels; (« entreprise commerciale connexe »)

"retail supply of power" means an arrangement, transaction or series of transactions which, in form or in substance, constitutes the sale or supply of power to the end-user of the power; (« fourniture d'énergie au détail »)

"separation of functions" means the functions of

(a) the corporation,

(b) any subsidiary, or

(c) any other person,

as determined by the board, operated on an independent and separate basis by the corporation, any subsidiary, any other person or any combination thereof; (« séparation des fonctions »)

"subsidiary" means a company of which the corporation owns, directly or indirectly, all of its shares. (« filiale »)

3         Section 2 is repealed and the following is substituted:

Purposes and objects of Act

2         The purposes and objects of this Act are to provide for the continuance of a supply of power adequate for the needs of the province, and to engage in and to promote economy and efficiency in the development, generation, transmission, distribution, supply and end-use of power and, in addition, are

(a) to provide and market products, services and expertise related to the development, generation, transmission, distribution, supply and end-use of power, within and outside the province; and

(b) to market and supply power to persons outside the province on terms and conditions acceptable to the board.

4(1)      Subsection 4(2) is amended

(a) in the section heading, by striking out "subject to certain limitations", and

(b) in the subsection, by striking out everything after "Her Majesty".

4(2)      The following is added after subsection 4(4):

Where Corporations Act applies

4(5)      Subject to the limitations set forth in this Act, subsections 15(2) and 16(1) and (2), sections 17 and 18 and subsections 119(1), (2), (3) and (4) of The Corporations Act apply to the corporation, with necessary modifications, and subsections 119(1), (2), (3) and (4) of The Corporations Act are deemed to apply to the members, officers and employees of the corporation and their heirs and legal representatives.

Where Corporations Act does not apply

4(6)      Except as set out in subsection 4(5), The Corporations Act does not apply to the corporation.

5         Section 7 is amended

(a) in the part preceding clause (a), by adding ", or of the board of directors of any subsidiary," after "board"; and

(b) in clause (a), by striking out "transformation,".

6(1)      Clause 15(1)(d) is amended by striking out "transformation,".

6(2)      The following is added after subsection 15(1):

Corporation has powers of a natural person

15(1.1)   In addition to the other powers set forth in this Act and subject to the limitations set forth in this Act, the corporation has the capacity, rights, powers and privileges of a natural person to carry out its purposes and objects and to carry on related business ventures, on such terms and conditions as the board deems proper.

Power to carry out purposes and objects of Act

15(1.2)   Subject to subsection (1.3) and section 15.1, the corporation, or any subsidiary, may

(a) carry out the purposes and objects of this Act;  or

(b) carry on related business ventures;

on behalf of the corporation, or the subsidiary, or, by way of a partnership, joint venture or any similar arrangement, with any other person, or by way of a company in which the corporation or a subsidiary owns shares or securities.

Approval of L.G. in C. required where aggregate value exceeds $5,000,000.

15(1.3)   The corporation or any subsidiary shall not, without the approval of the Lieutenant Governor in Council,

(a) carry out the purposes and objects of the Act; or

(b) carry on a related business venture;

by way of a partnership, joint venture or any similar arrangement, with any other person, or by way of a company in which the corporation or a subsidiary owns shares or securities, wherein the aggregate value of the investments of the corporation and any subsidiary in, and the obligations of the corporation and any subsidiary to, such partnership, joint venture, company or similar arrangement, with any other person, exceeds $5,000,000.

6(3)      Subsection 15(2), except clause (d), is repealed.

6(4)      Clause 15(2)(d) is amended

(a) by adding "The corporation may," before "for temporary purposes"; and

(b) by renumbering it as subsection 15(2).

6(5)      Subsection 15(3) is amended by striking out "clause 2(d)" and substituting "subsection (2)".

6(6)      The following is added after subsection 15(3):

Transmission access

15(4)     The corporation may enter into agreements, or issue a tariff prescribing terms and conditions and a rate schedule, under which the corporation may provide access to the transmission facilities of the corporation to any person entitled under section 21 or under The City of Winnipeg Act   to purchase power for resale in Manitoba or to any person for sale or use outside Manitoba.

Reliability

15(5)     The corporation may set, coordinate and enforce standards and rules, for the security, reliability and quality control of the transmission and distribution lines, of any person other than the corporation, which lines are interconnected with the transmission and distribution lines of the corporation.

Rights where standards not observed

15(6)     The corporation may, in addition to any other rights or remedies it may have, refuse to transmit or distribute power over, or receive power from, any transmission or distribution line, of any person other than the corporation, if the line is not operated in accordance with the standards and rules referred to in subsection (5) or any standards, rules, terms, conditions, guidelines or schedules adopted in accordance with section 16.3.

No power to transfer facilities or guarantee

15.1      The corporation or any subsidiary shall not

(a) sell, lease or otherwise dispose of major generation, transmission or distribution facilities in Manitoba, or any shares of a subsidiary which owns major generation, transmission or distribution facilities in Manitoba,  to any person other than a subsidiary;  

(b) guarantee the borrowings or obligations of any person, except that the corporation or a subsidiary, with the approval of the Lieutenant Governor in Council, may guarantee the borrowings or obligations of a subsidiary.

Retail supply of power

15.2      No person other than the corporation, or the City of Winnipeg in accordance with The City of Winnipeg Act, shall engage in the retail supply of power in Manitoba.

7         Section 16 is amended

(a) by renumbering it as subsection 16(1);

(b) in clause (1)(b), by adding ", including the right of entry to install, maintain and protect works and the right to impose restrictions on the use of any land, notwithstanding that the land which is subject to the restriction is not, or may not be, appurtenant or annexed to any land of the corporation" after "land";

(c) in clause (1)(d), by striking out "transformation,";

(d) by repealing clause (1)(e) and substituting the following:

(e) acquire by purchase, lease, licence or otherwise

(i) any real property outside Manitoba and erect, construct, maintain and operate, upon the real property so acquired, any works, or

(ii) interconnection works and maintain and operate the interconnection works so acquired;

(e) in clause (1)(f), by striking out everything after  "affected" and substituting "by any interconnection works, as to the terms and conditions upon which the interconnection works and the works carried out thereon shall be carried on or exercised";

(f) by repealing clause (1)(i) and substituting the following:

(i) sell, lease or otherwise dispose of any property of the corporation to a subsidiary or make any other investment in, or incur any obligation to, a subsidiary, where the aggregate value of the property, investments and obligations to the subsidiary exceeds $5,000,000.;

(g) by adding the following after clause (1)(i):

(i.1) develop new power generation stations;

(h) by adding the following as subsection 16(2):

No approval required if less that $5,000,000.

16(2)     Notwithstanding subclause (1)(e)(i), the corporation shall not require the approval of the Lieutenant Governor in Council to acquire real property outside Manitoba if the purchase price of the real property is less than $5,000,000.

8         The following is added after section 16:

Subsidiaries

16.1(1)   A subsidiary has the capacity, and subject to this Act and to the applicable laws of the jurisdictions in which the subsidiary carries on business, the rights, powers and privileges of a natural person.

L. G. in C. may limit rights, powers and obligations of subsidiaries

16.1(2)   In the case of a subsidiary that carries on business outside Manitoba, the Lieutenant Governor in Council may, for the purposes of enabling the subsidiary to comply with the regulatory requirements of the jurisdiction in which it carries on business, specify the rights, powers and obligations of the corporation or a subsidiary set out in this Act which shall not apply to the subsidiary.

L.G. in C. to approve loans

16.1(3)   A subsidiary shall not raise money by way of loan, on the credit of the subsidiary or otherwise, from any person other than the corporation, without the approval of the Lieutenant Governor in Council.

L.G. in C. approval required

16.1(4)   A subsidiary shall not carry on an activity for which the corporation is required to obtain the approval of the Lieutenant Governor in Council without obtaining the approval of the Lieutenant Governor in Council.

Rights of board re subsidiaries

16.1(5)   The board shall exercise all of the rights of a holder of shares or securities with respect to any subsidiary or any company of which it holds shares or securities, including the right to elect directors, as it deems proper.

Separation of functions

16.2      Any rules and procedures for the separation of functions which the board has established for the purposes of pursuing opportunities to purchase and sell power within and outside Manitoba may be adopted, by regulation, by the Lieutenant Governor in Council, and upon such adoption such rules and procedures shall have the force of law.

Adoption of codes and standards

16.3(1)   For the purposes of pursuing opportunities to purchase and sell power within and outside Manitoba,  the board may, subject to the approval of the Lieutenant Governor in Council,

(a) adopt, in whole or in part, any standards, rules, terms, conditions, guidelines or schedules, which are related to the planning, design or operation of generation or transmission facilities within an integrated regional power grid, established by the North American Electric Reliability Council, Mid-Continent Area Power Pool or any other industry organization, regional transmission group, regulatory body or other association or group or any other person;

(b) prescribe variations in, additions to or deletions from any standards, rules, terms, conditions, guidelines or schedules adopted under clause (a);

notwithstanding that the adoption of such standards, rules, terms, conditions, guidelines or schedules may constitute the delegation of powers or duties of the corporation to carry out or carry on certain functions to any other person.

Effect of adoption

16.3(2)   The adoption of any standards, rules, terms, conditions, guidelines or schedules under clause (1)(a), in whole or in part and either in existing form or as altered under clause (1)(b), is deemed, on the approval of the board, to be an adoption of

(a) any subsequent amendment made to the standards, rules, terms, conditions, guidelines or schedules; and

(b) any new standards, rules, terms, conditions, guidelines or schedules subsequently substituted by the North American Electric Reliability Council, Mid-Continent Area Power Pool or any other industry organization, regional transmission group, regulatory body or other association or group or any other person, for the standards, rules, terms, conditions, guidelines or schedules, and any new standards, rules, terms, conditions, guidelines or schedules so substituted are deemed to be subject to such alterations, with such modifications as the circumstances require, as may have been made in the adopted standards, rules, terms, conditions, guidelines or schedules under clause (1)(b).

9         Section 18 is amended by adding ", including the right of entry to install, maintain and protect works and the right to impose restrictions on the use of any land notwithstanding that the land which is subject to the restriction is not, or may not be, appurtenant or annexed to any land of the corporation," after "land" where it occurs for the first time.

10        Section 19 is repealed.

11(1)     The following is added after subsection 25(3):

Wiring inspections

25(3.1)   The corporation may dispense with the inspection, testing and approval of electric wiring and related facilities, upon such terms and conditions as may be prescribed by the corporation.

11(2)     Subsection 25(5) is amended

(a) by adding "or" after clause (d); and

(b)   by adding the following after clause (d):

(e) the failure to issue any permit, make any inspection or test or issue any approval;

12        The following is added after subsection 27(2):

Remedies for non-payment

27(3)     For greater certainty, subsections 29(1) and (2), sections 35, 36, 37, 39, 40, 41 and 42, subsection 43(4), sections 44 and 45, subsection 46(1) and sections 48, 50 and  51 of The Landlord and Tenant Act apply, with necessary modifications, to a distress and sale by the corporation under subsection (1).

13(1)     Subsection 33(1) is amended in the part following clause (c) by adding "or for any related business venture" after "for the purposes of the corporation".

13(2)     Clause 33(2)(a) is amended by  adding "or for any related business venture" after "Act".

13(3)     Subsection 33(5) is amended by striking out "the chairman and of the secretary of the corporation" and substituting "the chairman and of any one officer of the corporation appointed by the board for that purpose".

14        Section 36 is repealed.

15(1)      Subsection 37(1) is amended by adding ", which shall include consolidated financial statements for the corporation and all of its subsidiaries, if any" at the end.

15(2)     The following is added after subsection 37(2):

Funds and expenditures, subsidiaries

37(2.1)   Except in the case of trust funds, all funds, whether from income and revenue, borrowings, advances from the corporation or otherwise, coming into the hands of a subsidiary form one fund from which the subsidiary may make any and all expenditures necessary or expedient for its purposes and objects, and revenues of the subsidiary shall transfer to the corporation to be included in the fund formed in subsection (2) on terms and conditions prescribed by the board.

16(1)      Subsection 43(2) is amended

(a) by striking out ", or of any company the common shares of which are owned directly or indirectly by the corporation,"; and

(b) by striking out ", or any company the common shares of which are so owned directly or indirectly by the corporation,".

16(2)     The following is added after subsection 43(2):

Grants by subsidiaries

43(2.1)   A subsidiary, as an operating expense, shall make annually to any municipality in which land or personal property of the subsidiary is situated, or in which the subsidiary carries on business, such grant towards the cost of municipal and school services as the Lieutenant Governor in Council may approve.

17        Clause 47(1)(b) is amended by striking out "transformation,".

18        Sections 48 and 49 are repealed.

19        The following is added after section 49:

Terms and conditions of service extensions

49.1      The extension or enhancement of the supply of power by the corporation to any customer shall be on terms and conditions, which may include a contribution to, or payment for, capital expenditures, acceptable to the corporation.

20(1)     Subsection 50(1) is repealed.

20(2)     Subsection 50(2) is repealed and the following is substituted:

Order for interconnection of electrical systems

50(2)     If authorized by the Lieutenant Governor in Council, the board may order any person engaged in Manitoba in the generation, transmission or distribution of power to make an interconnection of two or more electrical systems, or parts thereof, on such terms and conditions, including the provision of transmission access to the corporation or to any other person, and with such apportionment of costs, as the board may deem proper.

21        Section 52 is amended by adding the following after clause (c):

(d) providing for the discontinuance of the supply of power to any customer who is in default in payment of any account for power, providing for the removal of the meters, wires, facilities and equipment of the corporation from the premises of the customer and providing for the allocation of, or exemption from, liability for losses, costs, damages or expenses resulting from such discontinuance or removal;

(e) providing for the allocation of, or exemption from, liability for any loss, costs, damages or expenses incurred by a customer or any other person resulting from any fluctuation, interruption, reduction or failure in the supply of power;

but no regulation or order made under this section shall relieve the corporation from liability for negligent acts or omissions.

22        The following is added after section 55:

Restraining or compliance order

55.1      If the corporation or any member, officer, employee, agent or auditor of the corporation does not comply with this Act, the regulations or by-laws, Her Majesty may, in addition to exercising any other right available to Her Majesty, apply to a court for an order directing the person to comply with, or restraining the person from acting in breach of, any provision of the Act, regulations or by-laws, and upon such application the court may so order and make any further order it thinks fit.

Saving

23         Nothing in this Act affects the validity of Orders in Council under The Manitoba Hydro Act that are valid on the day before the day on which this Act comes into force.

Coming into force

24        This Act comes into force on the day it receives royal assent.