Newfoundland and Labrador Hydro Reflects on a Transformational 2024 with AGM and Annual Report
June 25, 2025
Newfoundland and Labrador Hydro (Hydro) held its Annual General Meeting reflecting on 2024 and presenting the Annual Audited Consolidated Financial Statements for the year ended December 31, 2024. Hydro also released its Unaudited Financial Statements and financial results for the first quarter of 2025.
“This past year was transformational and memorable. It was a year that will be defined by an announcement that materially changes the future of the province and sets the path for a more prosperous future for our people; by customer-focused electricity system resource planning; and by the resilience of the people in our beloved company Town of Churchill Falls during summer forest fires. I have never been more proud to deliver an annual report.”
Jennifer Williams, President and CEO, Newfoundland and Labrador Hydro
In 2024, Hydro completed its annual plan anchoring its actions to three core priorities: Enabling Sustainable Growth, Serving the Province and Working Together. We continued to implement new ways to meet the future needs of our system and to positively contribute to a sustainable, economically bright future for Newfoundland and Labrador.
2024 Highlights:
- In December, the Governments of Newfoundland and Labrador and Quebec, along with Newfoundland and Labrador Hydro and Hydro-Québec, signed a historic Memorandum of Understanding (MOU) to terminate and replace CF(L)Co’s existing power contracts with fair, market-based pricing for electricity; to develop Gull Island; to expand capacity of the Churchill Falls plant through upgrades to existing infrastructure and the development of a second powerhouse; and to develop associated transmission. This deal will deliver transformational prosperity to the province over the life of the agreements.
- Together with the Government of Newfoundland and Labrador (Government), Hydro finalized the Muskrat Falls Rate Mitigation Plan. Hydro’s annual rate increase is now limited to 2.25 per cent up to and including the year 2030 for domestic residential rates, limiting rates from otherwise doubling.
- In June 2024, Hydro came together to support the people of Churchill Falls. Safety. Community. Commitment. Collaboration. Forward-thinking. These values were on full display last summer while forest fires threatened not only Hydro’s world-class facility, but also the close-knit community of Churchill Falls. Hydro is incredibly proud of this response and thankful for the support received from across the province and beyond.
- Last July, Hydro delivered its 2024 Resource Adequacy Plan to the Newfoundland and Labrador Board of Commissioners of Public Utilities. It was an evidence-based plan to power the province—focused on meeting forecasted growth while maintaining reliability for customers at the least cost and included exciting new electricity projects for the Island.
- In 2024, the organization unified to become Newfoundland and Labrador Hydro. This included supporting Government’s second and third reading of the amalgamation Bill on November 18 and 20, respectively, which received Royal Assent on December 4. Amalgamation became effective January 1, 2025.
2024 Financial Highlights:
- Hydro realized a profit of $479 million for the year, a decrease of $140 million compared to 2023.
- The decline was largely driven by using funds to mitigate customer rate increases in line with the Province’s Rate Mitigation plan. Fluctuations in non-cash Oil and Gas impairments and reversals of impairments also impacted the reduced earnings. These fluctuations are not uncommon in the oil and gas industry. The earnings decreases were partially offset by earnings from the sale of additional energy outside of the province under a short-term energy sales agreement.
- During 2024, Hydro applied a total of $240 million of rate mitigation funding against the net Muskrat Falls supply costs which had accumulated in the Deferral Account. This consisted of $90 million of internal funds generated from Hydro’s operational components and the second drawing of $150 million on the convertible debenture funding.
First Quarter Financial Highlights for 2025
- During the first quarter of 2025, Hydro applied $441 million of internally generated funds towards rate mitigation. The $441 million transfer reduced the Deferral Account for all of the 2024 supply costs, as well as $90 million (or one third) of the balance that had accumulated up to the end of 2023. This action was aligned with the province’s rate mitigation plan that limits the annual increase in rates related to the Muskrat Falls project to 2.25% until 2030.
- As a result of this rate mitigation plan, Hydro had a net loss of $52 million for the first quarter of 2025. This decrease, driven by rate mitigation funding of $441M applied in February 2025, was expected and was partially offset by higher export market revenue due to stronger prices.
