Manitoba Hydro Reports $157 Million Net Loss for 2023-24 Fiscal Year

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Manitoba Hydro Reports $157 Million Net Loss for 2023-24 Fiscal Year

October 1, 2024

Manitoba Hydro has announced a consolidated net loss of $157 million for the fiscal year ending March 31, 2024, a stark contrast to the previous year’s net income of $638 million. The utility attributed the loss to drought conditions, which have plagued the region for the second time in three years.

“Low water conditions resulted in less excess energy being available to sell in wholesale markets, and the need to import power to meet customers’ requirements in Manitoba,” said President & CEO Allan Danroth.

The net loss was significantly lower than the forecasted net income of $450 million, with the shortfall driven by reduced net exports, increased power import costs, and higher operating and administrative expenses due to collective bargaining settlements.

Breaking down the figures, the electric segment reported a net loss of $135 million, the natural gas segment a net loss of $34 million, while other segments, including Manitoba Hydro International, contributed a net income of $12 million.

Danroth emphasized the challenges posed by unpredictable factors such as water levels and export market prices. “We continually try to operate our business as efficiently as possible to minimize the impact of drought on our customers. However, as a hydroelectric utility, there is a limit to what we can do when we are at the mercy of Mother Nature when it comes to precipitation,” he said.

Despite significant spring rainfall replenishing waterways, the first quarter of the 2024-25 fiscal year showed a loss of $77 million, compared to a net income of $40 million for the same period last year. This loss was slightly higher than the budgeted net loss of $66 million, reflecting lower storage levels at the start of the fiscal year.

Danroth cautioned that late summer, autumn, and winter precipitation levels could still significantly impact the utility’s finances going forward. “Rains and winter snowpack — not just in Manitoba but across the entire watershed — play a critical role in ensuring we have good water conditions each year,” he said.