Allan Danroth, Manitoba Hydro’s president and chief executive officer, speaks in Winnipeg on Tuesday, July 9, 2024. (THE CANADIAN PRESS/Steve Lambert)
WINNIPEG — Manitoba Hydro has announced a consolidated net loss of $157 million for the 2023-24 fiscal year, a sharp drop from the $638 million profit recorded the previous year.
The Crown corporation says the loss was driven by drought conditions, which impacted hydroelectric production and led to costly power imports, according to the utility’s annual report released on Tuesday.
“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 Manitoba Hydro president and CEO Allan Danroth.
The financial hit for the fiscal year was $607 million below the forecasted net income of $450 million, driven by lower exports, higher costs for imported power, and increased operating expenses due to recent wage agreements. Danroth noted that while spring rains helped replenish water levels, the utility faces continued challenges, with the first quarter of the 2024-25 fiscal year already showing a loss of $77 million.
“While we are always striving to improve the efficiency of our operations, 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 added
