Controversies and Issues
Like any other large-scale activity, the Nelson River Hydroelectric Project has not been without controversy.
In 1976, the Churchill River diversion project was set into operation. Flow was diverted by a series of channels and control structures into the Nelson River. Instead of developing hydroelectric sites along the Churchill River, water was diverted by control structures and an artificial channel into the Nelson, thereby increasing flow and saving cost of development. The effects of this diversion on pre-existing water levels and the indigenous Cree and Métis people continue to be felt to this day. Negotiations between the affected Northern communities and Manitoba Hydro continue, to discuss mitigation measures and compensation for loss of traditional resource areas and sites.
The water level of Lake Winnipeg is now regulated by Manitoba Hydro as part of the energy generation operations. Some property owners on the southern edge of the lake feel that the levels are now maintained at a higher average level than would be natural, and attribute erosion of their property to the lake level. Manitoba Hydro has pointed out that the regulation project also allows lake level to be lowered, such as during the 1997 floods, thereby preventing significant property damage.
Although development of the Nelson River system was intended to secure a reliable source of low-cost energy to promote industrial development in Manitoba, such development was not forthcoming. Concerns about the magnitude and cost of Hydro development lead the provincial government to start an inquiry into the management of the company. The Commission of Inquiry into Manitoba Hydro reported in 1979 that Manitoba Hydro had not developed resources in the lowest-cost and most efficient way, and made many recommendations for the governance of Manitoba Hydro.
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