Ontario First Nation Faces Rising Costs for Manitoba Hydro Amid Border Tensions

Residents of the Animakee Wa Zhing 37 First Nation, located in northwestern Ontario, are facing escalating electricity costs linked to their reliance on Manitoba Hydro. This situation is exacerbated by a complex energy distribution arrangement that involves both Canada and the United States.
Background of Animakee Wa Zhing 37
The Animakee Wa Zhing 37 First Nation, previously known as Northwest Angle 37, is situated near Sioux Narrows and comprises Regina Bay and Windigo Island. With a population of approximately 650, the community is only accessible by water or during the winter months via specialized roads.
Current Energy Situation
Windigo Island’s electricity is sourced from the United States, despite the power originating from Manitoba Hydro. Chief Linda McVicar expressed her concerns about the high hydro rates her community endures, stating, “It’s illogical that we are purchasing power from a foreign country.” She highlighted the vulnerability of their energy situation amid rising political tensions between Canada and the U.S.
Electricity Costs and Comparisons
- Windigo Island residents pay about 14.3 cents US per kilowatt hour.
- This rate ranks among the highest for the region.
- Conversely, Manitoba Hydro customers pay roughly 9.6 cents Cdn per kilowatt hour.
- Ontario’s time-of-use rates vary from 7.6 cents to 15.8 cents dependent on usage hours.
Monthly electricity bills for Windigo Island can reach as high as $30,000 Cdn, affecting 16 homes and several community buildings. Individual households may incur bills up to $1,000.
Financial Assistance and Community Challenges
Due to these high costs, many community members struggle to pay their hydro bills. The First Nation subsidizes these costs, providing approximately $500 a month during winter, totaling $1,500 for the season. Chief McVicar noted that the community cannot pass these costs onto residents, as it exceeds their financial capabilities.
Historical Context and Future Prospects
The agreement facilitating this cross-border electricity setup dates back to the early 1980s. Since then, the connection to Canada’s electrical grid remains unestablished for Windigo Island. McVicar condemned this lag in infrastructure development, emphasizing, “It’s 2025, and we are still disconnected.”
Government Initiatives
Indigenous Services Canada (ISC) is currently working with the community. In 2023, ISC allocated $109,516 to assess and improve the electrical system on Windigo Island. The construction phase for enhancements is set for approval in July 2025. Ongoing discussions aim to address the community’s electrical needs, involving various stakeholders, including Ontario’s Ministry of Energy.
Conclusion
While some progress has been made, Chief McVicar urges that these measures do not resolve the fundamental issue of energy access. She maintains that it is crucial for both First Nations in the area to connect to the Canadian grid for sustainable and fair energy solutions.




