It was another year in the red for Manitoba Hydro.

The crown corporation is reporting a consolidated net loss of $63 million for 2024-25, due to drought. This compares to a consolidated net loss of $157 million the previous fiscal year. 

"This is the second low water year in a row and third Manitoba Hydro has experienced in four years," says President and Chief Executive Officer 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."

According to Manitoba Hydro, the net loss for last year was comprised of $49 million in the electric segment, a loss of $27 million in the natural gas segment, and a net income of $13 million from subsidiaries. It says the improvement over the prior year was largely driven by lower fuel and power purchase costs and increased domestic and electric natural gas revenues, partially offset by higher operating, maintenance, and administrative and finance expenses. 

"As I said last year, water levels and export market prices are difficult to predict and not fully in our control," says Danroth. "But we always operate our business in a way that attempts to minimize drought impacts."

For example, he says responsibly managing water resources ensured reliable operation through the year and meant they bought less energy from wholesale markets. Danroth says what they did buy was at significantly lower prices than the previous year. 

The 2024-25 annual report also notes that Manitoba Hydro filed a three-year General Rate Application with the Public Utilities Board, requesting annual increases of 3.5 per cent in each of the next three fiscal years. The rate application incorporated a reduction in Manitoba Hydro's expenses thanks to the provincial government's reduction in provincial debt guarantee fees and the elimination of the Crown Corporation's Capital Tax.

Meanwhile, Manitoba Hydro has also now released its first quarter report for the 2025-26 fiscal year. The first quarter report shows a loss of $61 million for the first three months of the fiscal year, primarily attributable to ongoing low water conditions.

"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," says Danroth.