Hydro announces CEO out after two years

Allan Danroth is out as Manitoba Hydro’s president and CEO — a departure that came as a surprise to some observers — just two years after he was hired.

Danroth left for personal reasons, the Crown corporation’s board chair, Jamie Wilson, said Friday, while announcing chief operating officer Hal Turner as interim president and CEO ahead of a national and international search for a replacement.

“Today’s one of those days where you have a lot of mixed emotions,” Turner told reporters at Hydro’s downtown Winnipeg headquarters. “I just want to say on behalf of all the employees in Manitoba Hydro, we very much appreciate Allan’s leadership over the last two years.”

Turner wouldn’t say whether he will apply to be the next permanent CEO.

“I haven’t given a lot of thought to what the future holds. I’m kind of focused on bringing a little bit of stability in the interim,” he said.

Wilson wouldn’t say whether Danroth resigned or departed on his own initiative. “Mr. Danroth is leaving for personal reasons. I can’t get into any of the details,” Wilson said.

He credited Danroth with leading Hydro through important changes, including safety culture improvements and an IT overhaul to replace aging software for internal systems.

Danroth’s exit happened while the Public Utilities Board nears the end of six weeks of hearings to scrutinize Hydro’s energy plans for the next 10 years, including three proposed natural gas-powered turbines in Brandon at an estimated cost of $3 billion.

The corporation, which has almost 5,500 full-time equivalent employees, is grappling with a projected energy shortfall, debt of $25 billion and aging infrastructure.

In a statement, Finance Minister Adrian Sala, who is responsible for Hydro, thanked Danroth for his leadership and wished him success. Neither Sala nor Premier Wab Kinew was available for an interview, a spokeswoman said.

Danroth was vice-president of operations at Alberta-Pacific Forest Industries before replacing Jay Grewal, who was fired, as CEO in 2024. Turner, who’s been with Hydro since 1995, was interim CEO during the previous transition.

Tory hydro critic Lauren Stone said the CEO and board turnover raises questions about how the NDP government “cannot keep stability” at the Crown corporation while spending billions on infrastructure.

“I’m not going to speculate as to the reasons (Danroth) is stepping down. However, I do question why the NDP is now going to be on their third CEO in less than three years,” she said.

Wilson said Turner will be a “steady hand,” while describing Hydro’s executive team as “world class.” He said the search for a new CEO will reflect board and provincial priorities, including affordable energy, collaboration with Indigenous communities, supporting staff and moving forward with the 10-year integrated resource plan.

Stone said Danroth appeared frustrated when he addressed the opening of the PUB hearings on July 27, specifically when he discussed electricity grid modelling software that has received “serious” offers of purchase since being developed by Hydro.

Had Danroth not made those comments, there would be no transparency on the offers or opportunities when Hydro desperately needs money to offset debt, Stone said.

Danroth told the PUB global energy companies offered hundreds of millions of dollars to buy the software.

Wilson said the remarks did not factor into Danroth’s departure. He said the government did not influence Danroth’s exit.

At the hearings, Danroth lashed out at critics of Hydro’s 10-year plan, and said the utility was “managing” eight credible threats against employees, including five toward him.

He warned Hydro isn’t the “energy superpower” many people think it is owing to growing demand, drought and low water levels. Wilson said the board supports the plan.

The NDP government replaced Hydro’s board of directors weeks after winning the 2023 election. The board later fired Grewal and appointed Danroth. Wilson became board chair in December.

Danroth was paid $544,440 in 2025, the compensation disclosure report shows. Grewal, his predecessor, earned $546,698 in 2023, her last full year before she was dismissed.

She was paid just over $881,000 in 2024 despite being fired six weeks into the year. Hydro said she was paid out according to the terms of her contract.

Wilson would not say whether Danroth’s compensation will experience a similar bump in his exit year. Wilson said Hydro will follow the terms of Danroth’s contract, which he cannot disclose.

James Wilt, a policy development manager with Climate Action Team Manitoba, said Danroth’s departure is surprising given the timing.

“It’s one of the last days of the PUB hearings into the (integrated resource plan) and major new facilities which, itself, has been contentious,” said Wilt, who is scheduled to present in favour of wind power and battery storage at Monday’s session. “The fact that this was announced when it was, I think, indicates there is some dissatisfaction at board level and perhaps government level, as well, about how Hydro has conducted itself through these hearings.”

Wilt said he hopes Danroth’s replacement prioritizes “reliable and cost-effective technologies,” such as wind and solar generation, battery storage and ground source heat pumps.

Leslie Dysart, CEO of the Community Association of South Indian Lake, noted Hydro is seeking its fifth permanent CEO since Bob Brennan retired in 2012 after 22 years in the role.

“The corporation is in trouble. I would say Manitoba Hydro is broken, and I think these presidents quickly realize that,” said Dysart, who gave a presentation to the PUB hearings last week.

He said the timing of Danroth’s exit, while Hydro’s plan faces scrutiny and criticism from some groups, including the association, is “suspect.” Dysart believes Hydro cannot afford the infrastructure it plans to build.

The province, Hydro and South Indian Lake, now known as O-Pipon-Na-Piwin Cree Nation, reached an $18-million settlement agreement in 1993 over flooding and other impacts caused by the Churchill River diversion project. The community was forced to relocate.

Dysart said the next CEO must include Indigenous communities and voices in future planning, and conduct “meaningful” consultation when operating licences for hydraulic facilities are renewed.

Several First Nations are currently suing Hydro, he noted.

Malcolm Bird, a University of Winnipeg political science professor who studies Crown corporations, said it’s concerning when leadership changes happen often.

“He’s been there for two years. That’s really quite difficult for a big organization like Hydro, particularly one that is engaged in long-term projects, building dams and wind farms and transmission lines,” Bird said.

“Hydro thinks in a very medium- and long-term way, so stability at the top and consistency at the top of the organization is really important.”

On the positive side, there is a lot of expertise and deep institutional knowledge at Hydro during the transition period, he said.

— with files from Carol Sanders

chris.kitching@freepress.mb.ca