{
  "id": 14139681,
  "title": "Hydro’s unpredictable fortunes",
  "url": "https://urgent.news/2026/10/13/hydros-unpredictable-fortunes",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-13T07:00:10.000Z",
  "source": {
    "name": "Winnipeg Free Press",
    "slug": "winnipeg-free-press",
    "url": "https://www.winnipegfreepress.com/opinion/editorials/2026/10/13/hydros-unpredictable-fortunes"
  },
  "original_language": "en",
  "account": "Manitoba Hydro's 2025-26 annual report reveals that the utility's net income is highly dependent on uncontrollable factors. These include the risk of drought, inflation, the cost of purchased electricity, and increased interest rates. In the last fiscal year, Manitoba Hydro faced these issues along with significant costs to replace equipment damaged by a severe summer of forest fires. The utility's forecasted $220 million profit turned into a $442 million loss for the year. Factors contributing to the losses included drought, inflation, the cost of purchased electricity, and higher interest rates. However, recent legislative changes saved the utility $295 million in 2025-26 by reducing the dividend paid to the province and capital taxes. Despite these savings, drought was the most significant factor behind the annual losses. Water flows during the last five years have been lower than the statistical average, with 2025-26 being the worst example, with water flows being just 65% of the annual average. While there have been drought cycles before, four out of the last five years delivering drought conditions appear to be a worrying trend. However, the utility's financial situation improved this year, with losses dropping to $15 million in the first quarter compared to $55 million during the same period last year. The improvement was largely due to increased revenue from Manitoba electrical consumers, driven by a four percent electrical rate increase, a 4.5 percent natural gas rate increase, and higher electrical demand due to unpredictable spring weather.",
  "summary": "Hope for rain. Or snow. Or both. There’s a truism buried deep in a financial outlook in Manitoba Hydro’s 2025-26 annual report, released in late September: “Manitoba Hydro’s net income […]",
  "key_points": [
    "Manitoba Hydro's net income highly dependent on uncontrollable factors like drought",
    "Drought and lower water flows led to $442 million loss in 2025-26 fiscal year",
    "Utility's losses dropped to $15 million in Q1 due to rate increases and reduced dividend"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}