Manitoba Hydro has reported a consolidated net loss of $63 million for the 2024-25 fiscal year, citing back-to-back drought years that significantly reduced the utility’s hydroelectric output and forced increased reliance on imported power.
The results, released Friday in the Crown corporation’s annual report, mark the second straight year of financial strain due to low water conditions, though the losses were less severe than the $157 million shortfall recorded the previous year.
Impact of Drought on Operations
“This is the second low water year in a row and the third Manitoba Hydro has experienced in four years,” said President and CEO Allan Danroth. “While the financial impacts of the drought weren’t as severe as they were last year, these low water conditions once again led to less energy being available to sell in wholesale markets. They also meant we needed import power to meet customer requirements in Manitoba more than usual.”
Breaking down the utility’s 2024-25 results, the electric segment posted a $49 million loss, while the natural gas segment reported a $27 million loss. Manitoba Hydro’s subsidiaries, however, delivered $13 million in net income.
The Crown attributed its improved financial position over the previous year to lower fuel and purchased power costs, along with stronger domestic and natural gas revenues. These gains were partially offset by higher operating and finance expenses.
“As with any hydroelectric utility, we are at the mercy of Mother Nature when it comes to precipitation,” Danroth said.
Chura noted that despite the drought, reliability has not been compromised. “Our system is designed and operated to ensure continuous, reliable electricity for all Manitobans, even in drought. Actions we take to manage our energy supply include careful management of our water resources, reducing spot export sales, purchasing power as required, and running the Brandon natural gas thermal generating station.”
New Strategy and Long-Term Goals
Alongside its financial results, Manitoba Hydro also unveiled a new enterprise strategy finalized in February 2025. The plan sets out six enterprise goals intended to align with Manitoba’s Affordable Energy Plan and strengthen both the operational and financial foundation of the utility.
The goals include enhancing employee experience, improving financial health, upgrading the SAP computer system, ensuring HVDC (high-voltage direct current) system reliability, planning for new energy resources, and providing modern customer solutions.
“These six enterprise goals define our commitment to action, to results, and to the people we serve,” said Danroth. “They are designed to help Manitoba Hydro deliver the energy that powers this province in the near term and to put the utility on course for a sustainable future.”
The corporation said reconciliation, safety, environmental care, and security will remain the values underpinning these objectives.
Rate Application and Resource Planning
The annual report also noted Manitoba Hydro’s recent three-year General Rate Application to the Public Utilities Board. The proposal seeks annual 3.5 per cent rate increases over the next three years. The application reflects cost savings tied to provincial government policy changes, including reduced debt guarantee fees and the elimination of the Crown Corporations Capital Tax.
Chura explained the practical impact for households, “The proposed increases would result in average bill impacts to residential customers using 1,000 kWh per month of $3.69, $3.81 and $3.94; and average bill impacts to residential customers using 2,000 kWh per month of $7.05, $7.28 and $7.53, for each fiscal year respectively.”
Meanwhile, Manitoba Hydro is developing its second Integrated Resource Plan (IRP). Once complete, the IRP will identify future resource needs, such as expanded energy efficiency measures and the potential addition of up to 600 megawatts of Indigenous majority-owned wind power.
“Our IRP solidifies Manitoba Hydro’s commitment to clean energy and net-zero targets as outlined in the province’s Affordable Energy Plan,” said Danroth. “It also affirms our commitment to affordable, safe and reliable energy supply, both now and well into the future.”
Chura added that Indigenous communities will be central to the new generation plans. “The Call for Power: Indigenous majority-owned wind project was announced by the provincial government in its Affordable Energy Plan last year. Manitoba Hydro will purchase up to 600 megawatts of electricity from wind farms that must be majority-owned by an Indigenous Nation (or multiple Nations) in Manitoba.”
First Quarter of 2025-26 Also in the Red
Alongside the annual report, Manitoba Hydro released its First Quarter Report for the 2025-26 fiscal year. The Crown utility posted a $61 million loss in the first three months, again pointing to low water levels as the main factor.
“While we remain hopeful for a return to more normal precipitation levels this autumn and into winter, we are continuing to manage our water and financial resources to ensure the security of the energy system going forward,” Danroth said.
Despite the ongoing drought challenges, Manitoba Hydro stressed it remains focused on long-term planning and operational resilience, even as it navigates short-term financial turbulence.
