Manitoba Hydro announced that drought conditions have impacted its financial status, resulting in a $157-million net loss for the corporation.
Media Relations Officer Peter Chura explained that low water levels lead to less surplus energy available for sale.
"Low water conditions result in less excess energy. There's just less energy to sell to wholesale markets. Manitoba Hydro experienced drought conditions for the second time in three years, unfortunately. That resulted in a net loss for our 2023-24 fiscal year. Low water conditions are always a challenge. They leave us with less energy to sell on wholesale markets, and we often need to import power to meet customer demand here in Manitoba."
Chura noted that the rates Manitoba Hydro charges are based on the general rate application submitted to the Public Utilities Board (PUB).
"We haven't submitted that for this year, and no decisions have been made on how we'll proceed with the general rate application. So, there's no rate change for customers anytime soon."
He emphasized that drought conditions are not frequent but must be considered when managing energy sales.
"In drought or drier conditions, there's less water in our reservoirs and rivers, so less water flows through the dams to generate electricity. When we produce a lot of electricity, we sell the excess on wholesale markets and use that revenue to keep rates low for Manitoba Hydro customers. But when there's less water, we can't sell the excess, and sometimes we even have to purchase energy from those same markets, which adds to our costs."
Chura added that factors like water levels and export market prices are beyond Manitoba Hydro’s control.
Financial results from previous years:
- Net income for the year ending March 31, 2023: $638 million (no drought)
- Net loss for the year ending March 31, 2022: $248 million (drought)