Manitoba Hydro released its annual report today showing a consolidated net income of $49 million for the fiscal year ended March 31, 2016, down from $136 million in 2014-15.
The decrease in net income is attributed largely to lower Manitoba revenues and an increase in expenses, including finance costs and depreciation related to the capital investments needed to maintain a reliable energy supply for Manitobans.
Manitoba Hydro’s consolidated net income was comprised of $37 million from the electricity sector, a $1 million net loss from the natural gas sector, $9 million from subsidiaries and $4 million related to adjustments required to harmonize accounting policies between electric and gas operations.
Overall revenue was $2.26 billion, a decrease of $58 million compared to the previous fiscal year.
Milder winter weather contributed to lower Manitoba revenues in both the electricity and natural gas segments. This was partially offset by an increase of $31 million in revenue from export sales of electricity compared to 2014-15. These higher export revenues were primarily due to favourable U.S. exchange rates and the higher volumes of electricity that could be sold in the opportunity sales market because of lower domestic demand.
Export sales represented over 20 per cent of Manitoba Hydro’s overall electricity revenues in 2015-16 and play an important role in keeping electricity rates for Manitoba customers among the lowest in Canada.
The report also noted the signing of a 20-year agreement for the sale of 100 megawatts of renewable hydropower to SaskPower beginning in 2020.
