The tension is over. The government elected Michael Sabia as Hydro-Quebec’s highest chairman. Anyone who succeeds Sophie Brochu as CEO faces enormous challenges.
• Also read: Where is Hydro-Québec heading?: Here are the questions about the future of the state-owned company
• Also read: The daunting challenges of the future CEO of Hydro-Québec
• Also read: One final lap in Hydro-Québec for Sophie Brochu
• Also read: Departures pile up towards Hydro-Québec
• Also read: Sophie Brochu will leave, putting her major reorganization behind her
Photo archive, Pierre-Paul Poulin
Michael Sabia headed the Caisse de depot etplacement du Québec from 2009 to 2020. It was he who launched the Réseau express métropolitain project. He then served as Director of the Munk School of Global Affairs & Public Policy at the University of Toronto before being appointed Assistant Secretary of the Treasury for Chrystia Freeland.
Recall that Sophie Brochu left her post on April 11th. Pierre Despars is currently interim CEO of Hydro-Québec.
While those close to Minister Fitzgibbon had repeatedly reiterated that the nominee would come from the energy sector and that “you need someone who is knowledgeable about the whole range of renewable energy”, the government eventually resorted to the businessman, who is also CEO of BCE was (Bell) between 2002 and 2008.
Huge challenges
Enormous challenges await Sophie Brochu’s successor.
First, Hydro-Quebec faces an electricity shortage, at least if Quebec sticks to its goals of decarbonizing and electrifying the province. Pierre Fitzgibbon recently mentioned that the 100 TWh figure often cited as Hydro-Québec’s target demand for 2050 ran out of water and that he had “no idea” of Hydro’s actual needs.
In addition, connection times in the province are becoming longer and the power grid is becoming increasingly vulnerable due to poor weather conditions. Add to this a shortage of manpower, particularly for engineers, price increases contested by some customers (including SMEs) and a mixed export strategy. Michael Sabia will therefore have a lot ahead of him.
check-out process
When he took charge of CDPQ in 2009, Michaël Sabia found an institution in turmoil that had just lost $40 billion the year before, a 25% negative return on its collapsed commercial paper investments in 2008.
However, under his aegis, the CDPQ’s assets grew from $120 billion to $326 billion.
“He is a finance and management man who is considered to be one of the hardest working. People who have worked say, ‘Michael is the hardest working man we’ve ever met,'” said Mario Dumont.
The Employers’ Council welcomed this appointment. “Michael Sabia is a wise choice to lead a company in the midst of complete transformation. There is no doubt that he will be able to meet the current and future challenges of the organization. Congratulations on your appointment and we look forward to working with you!” commented the organization.
For his part, Haruon Bouazzi, manager of energy files at Québec Solidaire, said he hopes “that Mr. Sabia will focus his efforts on making the energy transition a success,” and urged him to testify before a parliamentary committee about his vision for Hydro-Quebec .
Who is Michael Sabia?
- Michael Sabia, 69, made his name with us by running the Caisse de dépôt etplacement du Québec from 2009 to 2020.
- Born in Ontario to a surgeon father and a radio host, Mr. Sabia began his career in the 1980’s with the Federal Treasury Department in Ottawa.
- From 1993 to 1999 he held several key positions for Canadian National (CN), including Chief Financial Officer. During these years he also contributed to the privatization of the company.
- The businessman then worked in senior management at Bell Canada until 2008. He also made headlines at the time for receiving $21 million from his previous employer when he left.
- Michael Sabia, with a bachelor’s degree in Economics and Politics from the University of Toronto, is married to Hilary Pearson, granddaughter of former Canadian Prime Minister Lester Pearson.
– In collaboration with the QMI Agency and QUB Radio
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