Manitoba Hydro faces dry conditions, rising costs and debt

Manitoba Hydro reports low water levels and recent financial losses while moving ahead with infrastructure upgrades and planned wind power purchases.

Manitoba Hydro says it is facing dry conditions and low water levels that have reduced its ability to generate electricity and lowered export sales. The utility reported a consolidated net loss of $63 million in the last fiscal year and is forecasting a $464 million loss for the current year ending in March. The company is carrying a large debt load while pursuing multi-year plans to replace and upgrade aging transmission systems and add generation. The regulator approved a 4 per cent rate increase effective Jan. 1 and other rate decisions for upcoming years remain pending. Key facts: - Officials reported severe drought in three of the last four years, reducing water available for generation and exports. - Manitoba Hydro posted a $63 million net loss last year and forecasts a $464 million loss for the current fiscal year. - The utility’s debt is reported at about $25.3 billion, with roughly 30 per cent of annual revenues used for debt servicing. - A first request for proposals for new wind power — part of planned purchases totalling 600 megawatts from majority Indigenous-owned projects — is expected in March. Summary: Low water levels and sustained financial losses are affecting Manitoba Hydro’s operations and its timetable for upgrades and new power purchases. The utility plans to seek new wind capacity via an RFP expected in March, while the regulator has approved an initial rate increase and has not yet set rates for the following years.