Based on coverage from ManitobaHydro and the Winnipeg Sun.
Manitoba Hydro is feeling the pinch of Mother Nature's whims, reporting a $63 million net loss for the 2024-25 fiscal year. This financial hit, while substantial, is actually an improvement over the previous year's $157 million shortfall. The culprit? Drought conditions that have persisted for two consecutive years, severely impacting the utility's hydroelectric output and forcing it to rely more heavily on imported power.
Allan Danroth, President and CEO of Manitoba Hydro, summed up the situation with a touch of resignation: "As with any hydroelectric utility, we are at the mercy of Mother Nature when it comes to precipitation." The drought has not only reduced the energy available for sale in wholesale markets but also increased the need for imported power to meet local demand. Despite these challenges, Danroth assures that the reliability of the electricity supply in Manitoba remains uncompromised.
Breaking down the numbers, the electric segment of Manitoba Hydro posted a $49 million loss, and the natural gas segment saw a $27 million loss. However, the utility's subsidiaries managed to deliver a $13 million net income, providing a glimmer of financial relief.
In response to these challenges, Manitoba Hydro has unveiled a new enterprise strategy, finalized in February 2025. This strategy outlines six ambitious goals aimed at aligning with Manitoba's Affordable Energy Plan and strengthening the utility's operational and financial foundations. These goals include enhancing the employee experience, improving financial health, upgrading critical computer systems, ensuring the reliability of the high-voltage direct current system, planning for new energy resources, and providing modern customer solutions.
Danroth emphasized that these goals are not just about numbers and systems but are rooted in core values such as reconciliation, safety, environmental care, and security. "These six enterprise goals define our commitment to action, to results, and to the people we serve," he stated.
Looking ahead, Manitoba Hydro has filed a three-year General Rate Application with the Public Utilities Board, seeking annual rate increases of 3.5%. This move is part of a broader effort to stabilize finances, aided by provincial policy changes that have reduced debt guarantee fees and eliminated the Crown Corporations Capital Tax.
Moreover, the utility is developing its second Integrated Resource Plan (IRP), which will map out future energy needs. This plan includes provisions for up to 600 megawatts of Indigenous majority-owned wind power, underscoring Manitoba Hydro's commitment to clean energy and net-zero targets.
Despite the financial turbulence, Manitoba Hydro is keeping its eyes on the horizon, focusing on long-term planning and operational resilience. The utility's First Quarter Report for the 2025-26 fiscal year also showed a $61 million loss, again attributed to low water levels. However, Danroth remains hopeful for a return to normal precipitation levels in the coming seasons.
In the face of these challenges, Manitoba Hydro is not just weathering the storm but actively charting a course toward a more sustainable and resilient future. The utility's efforts to balance immediate financial pressures with long-term strategic goals highlight its commitment to providing reliable, affordable, and clean energy to Manitobans.
