The objective of this research is to investigate the application of the system dynamics approach to Manitoba Hydro's hydropower generation planning. The modeling processes focused on four main areas: hydraulic sector, electric power generation sector, transmission, and the economic sector. The models developed in this research can be used to: (1) determine the initial water storage of Lake Winnipeg to generate maximum or near maximum revenue for Manitoba Hydro, using Model A; (2) determine the control water level target of Lake Winnipeg to generate maximum or near maximum revenues for Manitoba Hydro, using Model B; (3) determine how much water to release via Manitoba Hydro's generating system from Lake Winnipeg in a manner that ensures the production of maximum or near maximum revenues for the utility, using Models A and B combined, (4) analyze the relationships between generating capacity, load development, and transmission system capacity. (Abstract shortened by UMI.)