Manitoba Premier Wab Kinew announced the province will not renew two hydroelectricity export contracts with US buyers, redirecting 500 megawatts of power to support local needs amid trade tensions and infrastructure pressures.
Manitoba Hydro said the contracts with Minnesota-based Northern States Power, part of Xcel Energy, expire on March 31.
The Crown corporation said it had no plans to renew them.
Kinew framed the decision as “repatriating” energy to fuel Manitoba’s economy, stating the power could supply roughly 400,000 Canadian homes each year.
“We’re stepping up to lead Canada’s energy conversation,” said Kinew.
Kinew emphasized Manitoba would remain a “reliable partner” for US exports but prioritize domestic projects.
The expiring contracts include 375 megawatts of summer power (325 megawatts in winter) and 125 megawatts supplied year-round.
Kinew said he told Minnesota Governor Tim Walz of the decision months ago.
The move comes as Manitoba Hydro faces financial issues.
Droughts and low water levels since 2022 have cut revenues, while aging infrastructure and carrying $24.6 billion in debt.
Manitoba Hydro recently applied for 3.5% annual rate hikes starting in 2026 and warned of winter power shortages without new investments.
To address gaps, Hydro plans a $1.4-billion, 500-megawatt fuel-burning plant by 2030 and partnerships to develop 600 megawatts of indigenous wind farms.
Two of its three main transmission lines have lost 20% capacity, and long-term infrastructure upgrades could cost $31 billion.
Manitoba Progressive Conservative Hydro Critic Lauren Stone criticized the export decision, arguing it ignored potential revenue from US sales.
But Hydro spokesperson Peter Chura said the contracts expiry was “already factored into our planning.”
Kinew outlined plans for the repatriated power as 50 megawatts could support a proposed transmission line to Nunavut, with a related agreement to be signed on Wednesday.
The remaining 450 megawatts might fuel cross-Canada trade corridors.
“There’s appetite for big energy and trade projects,” said Kinew, urging federal government support post-election.
Manitoba Hydro’s current capacity is 6,240 megawatts, though this depends on water levels and infrastructure reliability.
Kinew said new projects, including the thermal plant and wind farms, could add 1,600 megawatts of capacity.
The province will continue buying US power in winter and selling surplus in summer.