2013-14 Annual Report: Highest Level of Retained Earnings in Corporation’s History
Press Release
A five-year high in export electricity sales revenue helped Manitoba Hydro to nearly double its net income in 2013-14 compared to the previous year.
Manitoba Hydro released its annual report today announcing a net income of $174 million for the fiscal year ended March 31, 2014, up from $92 million in 2012-13. Retained earnings reached $2.72 billion – the highest level in the corporation’s history.
“Manitoba Hydro’s performance in the past fiscal year surpassed our forecasts, a reflection of ongoing improvements in export markets,” said Scott Thomson, President and Chief Executive Officer of Manitoba Hydro. “This result strengthens our financial position as the corporation moves forward with needed investments in infrastructure renewal, and new generation, which helps moderate domestic rates and ensures Manitobans continue to pay amongst the lowest bills in the country.”
The increase in net income is largely attributed to an $86 million increase in revenues from export electricity sales compared to the same period last year, for a total of $439 million in export sales. Higher U.S. sales volumes, which resulted from higher hydroelectric generation and higher export prices drove the increase. As well, domestic electricity sales revenue increased mainly due to high heating loads as a result of a record cold winter weather in 2013-14 and growth in the overall number of customers.
Titled “Re-powering Our Province”, the 2013-14 annual report highlights work Manitoba Hydro is doing to meet the growing energy demand of Manitoba and renew aging assets.
The report notes the start of construction on the Bipole III Transmission Project that will benefit all of Manitoba by strengthening the reliability of the province’s electricity supply and providing additional capacity needed to deliver electricity from new northern generating stations to southern Manitoba.
The report also notes the public hearing on the 695-megawatt Keeyask Generating Station conducted by the Manitoba Clean Environment Commission as part of an environmental licensing review. The project was also part of a “Needs For and Alternatives To” review by the Manitoba Public Utilities Board that began during the fiscal year. Both agencies later recommended Keeyask proceed and construction is underway in partnership with Tataskweyak Cree Nation, War Lake First Nation, Fox Lake Cree Nation and York Factory First Nation.
Additionally, investments to renew and enhance the infrastructure used to deliver electricity and natural gas to customers are detailed including the replacement of aging capacity-constrained transmission and distribution stations, the beginning of a comprehensive silicon injection program to extend the life of aging underground electricity distribution cable, and the rebuild of manholes under the streets of downtown Winnipeg.
The corporation also made headway in its efforts to control the growth of operating expenses. After allowing for charges attributable to changes in accounting practices, operating expenses increased by only 1.7 per cent – lower than the rate of inflation.
Other highlights include: two major power sales to Wisconsin Public Service, one for 108 megawatts of firm power from 2016 to 2021 and another for 308 megawatts of firm power for up to 10 years starting in 2027 and the launch of the Power Smart for Business Pay As You Save Financing Program and the Power Smart Community Geothermal Program that seeks to install geothermal heat pump systems throughout First Nation communities.
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