Tories welcome new Hydro adviser – Winnipeg Free Press

The Tories accused the government of “hiding something” after appointing a special adviser to Manitoba Hydro, which criticized the Crown corporation and the province's energy policies.

For the second time this week, the April 17 appointment of Kenneth Klaassen as the Treasury Department's “special adviser on hydro and energy” was raised by Progressive Conservative finance critic Obbie Hahn.

According to Hahn, Klassen has supported increasing carbon taxes, said he wants to raise Manitoba's gas tax, eliminate the provincial sales tax on home heating and “rapidly phase out natural gas in this province.”

The Tories pointed to Klaassen's 2018 presentation to the legislative committee on the Climate and Green Plan Implementation Act. In it, Klaassen highlighted the benefits of energy efficiency: “This is one of the most cost-effective climate change measures we can take,” according to an official entry in Hansard. “It saves more than it costs. It's not a free lunch; it's lunch, you'll be paid for it.''

Klaassen questioned why Manitoba has such a low fuel tax, saying it doesn't make sense if the province wants to accelerate the adoption of electric vehicles. He told an all-party committee at the time that Manitoba needs to reform how gasoline is paid for.

Klassen, who has decades of experience working in provincial and federal governments and has consulted on energy efficiency strategies, legislation and regulations, told the committee the seven per cent PST discount on home heating fuel “has been a concern of mine for 30 years.” Natural gas imported from Alberta for home heating — a fossil fuel — is exempt from the seven percent tax, and a natural gas furnace does not have the hydroelectric power needed to run a fan motor.

“Why are we exempting non-renewable fossil fuels from taxation, but efficiency measures — if I hire someone to put up a Manitoba window made with Manitoba labor — are taxed? We need to do the opposite =… If we introduce PST or remove the PST exemption for home heating fuel, we need to have adequate protection for low-income households.”

Klaassen urged the government of the day to launch Efficiency Manitoba. Then-Opposition Leader Wab Kinew asked him, “Do you agree that water availability and the broader future of hydro are very important in the fight against global warming?” he asked.

Klassen said.

“If we're going to phase out natural gas as a fuel for heating homes and buildings, at least in new construction, and if we're going to transform vehicles, Manitoba Hydro has a big role to play,” Klassen said. time

After more than 30 years with this Crown corporation, Klassen told the committee he doesn't think Manitoba Hydro “has the culture to embrace this kind of change.”

“They are very delivery-oriented; they are not demand driven. I think that's the role of Efficiency Manitoba… they can address some of these deficiencies and they're neutral on this issue, so Manitoba Hydro needs to focus on their knitting… creating an abundant, affordable supply of clean water. Manitoba efficiency needs to be more concerned with demand-side things.”

Manitoba Efficiency, which offers programs and incentives to help save energy, was launched in 2018 as a Crown corporation under the Pallister government.

Hahn cited Klassen's lack of confidence in Manitoba Hydro's ability to change.

“These are things he's willing to say on the record. What is he trying to say to the minister behind closed doors?” Khan told reporters on Wednesday. “Manitobans can't afford the expensive advice of this NDP special counsel.”

Hahn, as usual, asked why Klaassen's salary was not included in the order at the hearing on his appointment. This was announced by the press secretary of the Minister responsible for Manitoba Hydro, Adrien Sala Free press That omission was an oversight, and Klassen's annual salary is $130,000.

At home, Sala said his department is “bringing in talent” to meet Manitoba's energy needs “and that's not something we need to hide.”

In an interview Wednesday, Sala said he hired Klassen for his “extensive expertise in energy and decarbonization.”

“We are working to develop energy policy and chart a path forward to ensure that we can offer Manitobans access to reliable, affordable energy,” Sala said. “Mr. Klassen is in a good position to do that.”

He dismissed Klassen's suggestion that the council would be “costly” for Manitobans.

“We have a credible path to net zero without a carbon tax,” Sala said. “The fight against climate change must not come at the expense of the working class.”

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Carol Sanders
Legislative reporter

After 20 years reporting on the diversity of people who call Manitoba home, Carol moved to the Legislative Bureau in early 2020.

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