The report, written by Calgary consulting firm MGF Project Services, was commissioned by the Manitoba Public Utilities Board as part of the PUB hearings into Hydro's proposed rate increase. It found the Keeyask dam could cost as much as $10.5 billion due to the "contractor's poor productivity and increased indirect costs" associated with the project.
The 695-megawatt generating station — approximately 725 kilometres north of Winnipeg on the Nelson River — was originally estimated to cost $6.5 billion and expected to be in service by November 2019. In September 2016, Hydro raised its cost estimate to $7.8 billion.
Then in March, it went up to $8.7 billion. At the time, Hydro blamed rising expenses for foundation work for the additional increase.
Hydro wants to charge 7.9 per cent more per year until 2023-24, and raise rates an additional 4.54 per cent the following year. If allowed, that would mean a $1,000 Hydro bill would reach almost $1,600 in 2023-24, and it would hit $1,650 the following year.
Keeyask dam cost could reach $10.5 billion, report warns - Manitoba - CBC News