Manitoba Hydro Annual Report 2015-16

Working for you
Manitoba Hydro-Electric Board 65th Annual Report

For the Year Ended March 31, 2016
Table of contents
Letter to the Minister
President & CEOs letter to customers
Highlights
10
Major projects update
13
Targets, results and priorities
14
Corporate integrity
16
Managements discussion and analysis
20
Consolidated financial statements
43
Major electric and gas facilities
114
Chairs Letter to the Minister of Crown Services
July 29, 2016

Honourable Ron Schuler
Minister of Crown Services
Legislative Building
Winnipeg, Manitoba
R3C 0V8
Dear Minister,
I am honoured to present the 65th Annual Report of the Manitoba Hydro-Electric
Board, together with the financial statements, for the fiscal year ended March 31, 2016.
Respectfully submitted,
H. Sanford Riley
Chair
Manitoba Hydro-Electric Board
Our service
area in km2
nearly
Total assets
650 000
100
$19.8
Number of
electricity customers
Number of natural
gas customers
Total electricity
capability
567 634
276 858
5 690
Number of
generating stations
Kilometres of
distribution lines
Kilometres of
transmission lines
17*
68 000
18 000
Kilometres of
natural gas lines
Number of Indigenous
employees
Total number of
full-time employees
10 070
4
Number of communities
with natural gas service
nearly
1 in 5
billion
megawatts
6 410
*The Wuskwatim Generating Station is owned by the Wuskwatim Power Limited Partnership, a partnership involving Nisichawayasihk Cree Nation and Manitoba Hydro.
Corporate Profile
Manitoba Hydro is a provincial Crown Corporation and one of the largest integrated
electricity and natural gas distribution utilities in Canada. We are a leader in providing
renewable electricity and clean-burning natural gas. Our Power Smart* programs help
Manitoba residents and businesses conserve energy and lower their energy costs.
We also trade electricity within three wholesale markets in the Midwestern United
States and Canada. Nearly all of the electricity Manitoba Hydro produces each year
is renewable hydro power generated using the provinces abundant water resources.
Our export of electricity helps keep our domestic rates low and displaces greenhouse
emissions in markets where fossil fuels are used for electricity production.
Vision
To be recognized as a leading utility in North America with respect to safety, reliability,
rates, customer satisfaction and environmental leadership.
Mission
To provide for the continuance of a supply of energy to meet the needs of the province
and to promote economy and efficiency in the development, generation, transmission,
distribution, supply and end-use of energy.
*Manitoba Hydro is a licensee of the Trademark and Official Mark.
President & CEOs Letter to Customers
The theme of this report, working for you, reflects Manitoba Hydros focus on serving
our customers. We exist for the benefit of Manitobans and are dedicated to meeting
your energy needs now and into the future.
An executive by experience, a professional engineer by training, and a prairie farm boy
at heart, it was a great honour and privilege to assume the role of President & Chief
Executive Officer of Manitoba Hydro in December 2015.
Manitoba has a tremendous advantage generating

approximately 97 per cent of its electricity from
renewable hydropower.
During my first 100 days on the job, I spent time travelling the province, visiting both
Manitoba Hydro and customer operations as well as meeting with key stakeholders.
Coming from outside the corporation, my intention was to learn about Manitoba
Hydro by listening to employees, customers, Indigenous leaders and many others. In
those conversations I heard common themes. Manitobans expect us to be reliable and
fair. You expect us to manage our financial and human resources responsibly. There
is an inherent understanding of the importance of our relationships with Indigenous
communities and the importance of us interacting with the environment in a manner
that meets the needs of the present without compromising the ability of future
generations to meet their needs.
Conversations with stakeholders also confirmed what I knew to be Manitoba Hydros
strengths, including a highly skilled and diverse workforce, a level of customer
satisfaction that is among the highest in the industry, and an energy system that
produces practically all of our electricity from renewable sources. In a world that
is increasingly concerned about reducing carbon emissions and transitioning to
renewable energy, Manitoba has a tremendous advantage generating approximately
97 per cent of its electricity from renewable hydropower. This is very different from
many other jurisdictions in North America where major investments are required to
transition away from fossil fuel generated electricity. Aside from providing Manitobans
with a reliable source of cost effective electricity, renewable resources also enable the
province to be a major exporter of electricity to neighboring jurisdictions generating
revenues which help deliver lower rates to our customers here at home.
We also deliver affordable, clean natural gas which provides efficient and cost effective
heating to nearly 60 per cent of the homes in Manitoba and is an important energy
source for business and industry in the province. Manitobans are currently benefiting
from historically low natural gas costs, as Manitoba Hydro flows the benefits of lower
prices directly through to our customers.
Ive come to appreciate just how committed our

employees are to carrying out their responsibilities and
fulfilling the important mandate entrusted to us.
Meeting Manitobas current and future energy needs requires ongoing investment in
new capacity coupled with re-investment to upgrade and replace aging infrastructure.
The significant investments being made towards ensuring a secure, reliable energy
system for Manitobans create financial challenges for the corporation. Successfully
addressing these challenges will require us to operate more efficiently but also
requires raising additional revenues. We have continued with an approach of seeking
moderate, predictable annual increases to electrical rates and in parallel we are doing
our part to increase operating efficiency helping us limit increases in our operating
and administrative expense to 1% annually, which is less than the rate of inflation.
Over the past two years, we have driven cost reductions and reduced our operational
staffing levels by taking advantage of retirements and normal employee turnover while
continuously seeking to find new efficiencies in how we work.
Since joining Manitoba Hydro, Ive come to appreciate just how committed our
employees are to carrying out their responsibilities and fulfilling the important
mandate entrusted to us. This commitment is most often on public display when we
face challenging circumstances such as when we have a major storm that knocks
down lines and disrupts service. Yet, behind the scenes, where you cant always see
their efforts, Manitoba Hydro employees work hard on a daily basis to deliver the
energy and the customer service you count on.
This company has been and will continue to be successful thanks to the efforts of
many who bring their considerable knowledge and experience to bear on the many
facets of the corporation. On behalf of the employees of Manitoba Hydro, I would
like to take this opportunity to thank the outgoing members of the Manitoba HydroElectric Board (MHEB) for the time and energy they dedicated to serving the energy
needs of Manitobans.
I would also like to welcome the new MHEB members. Recognizing the mandate
and direction given to the board by our new government, we are fully committed to
working hard to ensure that together we set the right future direction in order to best
serve Manitobans.
At Manitoba Hydro we remain wholeheartedly dedicated to having positive impact on
the lives of our customers and on the prosperity of our province. We are committed
to safely, reliably and affordably delivering the energy you count on. We are working
for you.
Kelvin Shepherd, P.Eng

President and Chief Executive Officer
Manitoba Hydro
2015-16 Highlights
Selected the final preferred route and filed an environmental impact statement with
regulators for the Manitoba-Minnesota Transmission Project, a line that will allow us to
fulfill current export sale agreements and double our import capability strengthening
the reliability of our electricity supply, particularly in times of drought.
Signed a 20-year agreement for the sale of 100 megawatts of renewable energy to
SaskPower beginning in 2020 that will contribute to keeping rates lower in Manitoba.
Named one of the nations top employers for the sixth year-in-a-row by the editors
of the Canadas Top 100 Employers Project.
Improved our turnaround time for performing underground locates of electricity
and natural gas lines with a new, fully electronic process that no longer requires the
customer to be on-site.
Launched a new system on our website enabling customers to report power outages
using mobile devices as an alternative to using the phone.
Introduced Power Smart for New Homes, a program providing incentives to encourage
the use of innovative designs and energy efficient technologies by Manitobas new
home construction industry.
Announced Power Smart Shops, a program aimed at lowering energy and water bills
for small independent business across the province by providing free or low-cost
efficiency upgrades and financial incentives.
Received the 2015 Energy Star Market Transformation Award from Natural Resources
Canada for our Fall 2014 Power Smart Residential LED Lighting Program.
10
11
12
Major projects update
Keeyask
At the Keeyask Generating Station, a project being built in partnership with four First
Nations Tataskweyak Cree Nation, War Lake First Nation, Fox Lake Cree Nation and
York Factory First Nation the first concrete was placed in the fall of 2015, approximately
six months ahead of schedule. When complete in 2021, Keeyask will produce additional
renewable electricity needed to maintain a reliable supply for Manitoba.
$6.5 billion total estimated cost
$2.4 billion total spent to March 31, 2016
$450 million total contracts awarded to Indigenous contractors/joint ventures
6 860 total hires to the project
85 per cent Manitoba residents
54 per cent Indigenous persons
Bipole III
The past winter saw construction ramp up at two converter stations that are part of the
Bipole III Transmission Reliability Project. Over 60 per cent of the tower foundations
were completed for this transmission line with the first tower erected in March. Bipole III
will strengthen the reliability and security of the provinces energy supply by creating an
alternate connection to deliver electricity from northern generating stations to customers
in southern Manitoba.
$4.65 billion total estimated cost
$1.8 billion total spent to March 31, 2016
$305 million total contracts awarded to Indigenous contractors/joint ventures
4 616 total hires to the project
84 per cent Manitoba residents
43 per cent Indigenous persons
13
SAFETY IN THE WORKPLACE

Promoting safety remains Manitoba Hydros top priority. We are committed to continuously improving
safety performance and focusing on strategies to instill a safety and health culture in all corporate activities.
In doing so, we intend to maintain a steady decline in both workplace accident severity and frequency rates.
MEASURE
TARGET
PERFORMANCE
Accident severity rate

(days per 200 000 hrs worked)
<12
12.51
Accident frequency rate

(accidents per 200 000 hrs worked)
<0.6
0.59
10
Serious incidents
CUSTOMER VALUE
Providing excellent customer service, high system reliability and affordable rates drives us in everything we do.
Manitoba Hydro is a leader in promoting conservation, providing numerous Power Smart programs to assist
our customers in meeting their energy needs.
MEASURE
TARGET
PERFORMANCE
System average interruption

duration (minutes per year)
<116
154
System average interruption

frequency (outages per year)
<1.4
1.61
>8.2/10
8.22
Customer satisfaction
FINANCIAL STRENGTH
Maintaining the financial strength of the corporation is essential to making the investments in infrastructure
needed to continue providing safe and reliable service to our customers, financially withstanding the risks
and uncertainties that are inherent in Manitoba Hydros operations and to providing customers with
long-term rate stability and predictability. We are committed to carefully managing costs and utilizing
resources efficiently and effectively to fulfill our mandate and provide maximum value to our stakeholders
and ratepayers.
MEASURE
Debt:equity ratio
Interest coverage
Capital coverage
14
TARGET
PERFORMANCE
75:25
>1.80
>1.20
83:17
1.55
1.37
WORKFORCE MANAGEMENT & INDIGENOUS RELATIONS

Attracting, developing and retaining a highly skilled and motivated workforce that reflects the demographics
of Manitoba is critical to our success. Engaging impacted Indigenous communities in a positive way is vital
to enhancing working relationships. We continue to place emphasis on addressing the adverse effects
of our operations, fostering an appreciation of Indigenous culture, developing and maintaining business
relationships, providing opportunities in future development projects and implementing initiatives to
recruit, develop and retain Indigenous employees.
MEASURE
Indigenous corporate workforce
Indigenous northern workforce
Persons with disabilities

Visible minorities
TARGET
PERFORMANCE
16%
45%
6%
7%
18.2%
47.5%
9.2%
8.2%
PROTECTING THE ENVIRONMENT

Protecting the environment is an integral part of everything we do. Manitoba Hydro integrates
environmentally responsible practices into all aspects of our business. Environmental protection is carried
out with dedication to monitoring programs, climate change initiatives, and environmental research and
development.
MEASURE
Renewable electricity generated in Manitoba
Total annual GHG emissions
Repeat environmental audit findings
TARGET
PERFORMANCE
99%
520 kt
0 repeat findings
99.8%
167 kt
1
DEMAND SIDE MANAGEMENT

Demand side management plays a key role in meeting Manitobas future energy needs in a sustainable
manner as the provinces population and economy continues to grow. Our efforts assist customers in
using energy more efficiently and result in overall lower energy bills.
MEASURE
TARGET
PERFORMANCE
Annual incremental
electric energy saved
292 GWh
346 GWh
Electric capacity
saved annually
221 MW
244 MW
9 million
cubic metres
9.5 million
cubic metres
Natural gas energy

saved annually
15
Corporate Integrity Program

Manitoba Hydro encourages employees and others to speak up on matters of concern
without fear of reprisal, through its Integrity Program. All disclosures under the
Integrity Program are protected by strict rules of confidentiality.
Below is a summary of all disclosures received during 2015-16 which allege
wrongdoing as defined in The Public Interest Disclosure (Whistleblower Protection) Act:
Total number of disclosures received: 3

Number of disclosures ongoing from 2014-15:
Number of disclosures acted upon: 3

Number of disclosures not acted upon:
Number of investigations commenced/continued:
Number of disclosures that were verified:
Number of disclosures that were not verified:
Number of disclosures carried forward to 2016-17:
Corrective actions were taken for the verified incidents, as follows:

Actions have been taken or are in progress to enhance policies and controls to
deal with weak management oversight of a procurement process.
A manager had taken steps but not sufficient steps to dispel perceptions of a conflict,
and additional measures were taken to avoid any appearance of involvement in
administration of a contract to address perceptions.
Irregularities in the procurement of a contract resulted in termination of the
contract and termination of the services of a consultant. Recommendations were
made to enhance related policies and procedures, and action plans have been
implemented.
16
Manitoba Hydro-Electric Board
Appearing from left to right:

Back row -
Front row -
David Brown
Dayna Spiring
Earl Edmondson
Dr. Annette Trimbee
Michael Pyle
Allen Snyder
H. Sanford Riley, Chair

Steve Kroft
Missing: Jennefer Nepinak
Cliff Graydon
17
Manitoba Hydro Senior Officers
18
Kelvin Shepherd, P.Eng

President and Chief Executive Officer
E. Ruth Kristjanson, BA (Hons), MA

Vice-President,
Corporate Relations
Lloyd Kuczek, P. Eng, MBA

Vice-President,
Customer Care & Energy Conservation
Bryan Luce
Vice-President,
Human Resources & Corporate Services
Shane Mailey, P. Eng

Vice-President,
Transmission
Lorne Midford, P. Eng

Vice-President,
Generation Operations
Darren B. Rainkie, CPA, CA, CBV

Vice-President,
Finance & Regulatory Affairs
& Chief Financial Officer
G. Brent Reed
Vice-President,
Customer Service & Distribution
Ken M. Tennenhouse, LL.B

Vice-President,
General Counsel & Corporate Secretary
Siobhan Vinish
Vice-President,
Corporate Communications & Public Affairs
Financial Review
Managements Discussion and Analysis
Summary of Consolidated Results
20
Electric Segment
26
Natural Gas Segment
34
Other Segment
38
Risk Management
39
Transition to IFRS
40
Outlook 41
Consolidated Financial Statements
Management Report
43
Auditors Report
44
Consolidated Statement of Income
45
Consolidated Statement of Financial Position
46
Consolidated Statement of Cash Flows
48
Consolidated Statement of Comprehensive Loss
49
Consolidated Statement of Changes in Equity
50
Notes to Consolidated Financial Statements
51
10-Year Financial Statistics
112
10-Year Operating Statistics
113
19
Managements Discussion & Analysis
The following Managements Discussion and Analysis (MD&A) provides comments on the financial results of
Manitoba Hydro (the corporation) for the year ended March 31, 2016 with comparative information where
applicable. The MD&A also provides an assessment of corporate risks and contains forward-looking statements
regarding conditions and events which may affect financial performance in the future. Such forward-looking
statements are subject to a number of uncertainties which are likely to cause actual results to differ from those
anticipated. For context, the MD&A should be read in conjunction with the consolidated financial statements
and notes.
Summary of consolidated results

The fiscal 2016 financial information discussed below has been prepared in accordance with International
Financial Reporting Standards (IFRS). Effective April 1, 2015, the corporation adopted IFRS in place of
Canadian Generally Accepted Accounting Principles (CGAAP). All comparative figures for the 2015 fiscal
year that were previously reported in accordance with CGAAP are now reported in accordance with IFRS.
Information presented in this MD&A for fiscal 2014 and earlier was prepared in accordance with CGAAP. The
impacts on the financial statements and accounting policies of adopting IFRS are further discussed below and
in the Notes to the Consolidated Financial Statements.
Manitoba Hydros consolidated net income from electricity and natural gas operations for the fiscal year
ended March 31, 2016 was $49 million compared to $136 million in the previous fiscal year. Net income
decreased $87 million as a result of lower domestic revenues in both the electric and natural gas segments
primarily due to milder winter weather and an increase in capital investment related expenses such as finance
costs, depreciation and capital taxes associated with new plant going into service.
20
The Manitoba Hydro-Electric Board 65th Annual Report
The following table provides results on the two primary operating segments of Manitoba Hydro as well as the
consolidated results.
Electric
Natural Gas
Consolidated*
2016
2015
2016
2015
2016
2015 Change
millions of dollars
Revenues
Manitoba
1 430
1 454
356
429
1 843
1 932
(89)
Extraprovincial
415
384
415
384
31
1 845
1 838
356
429
2 258
2 316
(58)
Expenses
Net income (loss) before net
movement in regulatory balances
Net movement in regulatory balances
Net income (loss)
Net income (loss) attributable to:
Manitoba Hydro
Non-controlling interests
Total assets and regulatory debits

Retained earnings
Financial Ratios
Debt:equity
Interest coverage
Capital coverage
1 893
(48)
1 779
59
329
27
415
14
2 266
(8)
2 229
87
37
(95)
75
27
41
100
(28)
(1)
(3)
11
47
39
38
125
9
(86)
37
(10)
27
111
(11)
100
(1)
(1)
11
11
49
(10)
39
136
(11)
125
(87)
1
(86)
19 230
17 054
677
692
19 780
17 567
2 213
2 696
2 659
65
66
2 828
2 779
49
83:17
1.55
1.37
82:18
1.73
1.20
*includes other segments and eliminations

Consolidated net income attributable to Manitoba Hydro of $49 million for the 2016 fiscal year was comprised
of net income of $37 million in the electric segment, a net loss of $1 million in the natural gas segment,
net income of $9 million from subsidiaries and a $4 million net income related to adjustments required on
consolidation to harmonize accounting policies between electric and natural gas operations related to the gas
meter exchange program.
At the beginning of fiscal 2015-16 Manitoba Hydro forecasted consolidated net income of $126 million.
Manitoba Hydro revised the forecast during the fiscal year to $31 million. The $95 million decrease in net
income between forecasts is primarily related to lower electricity export prices and domestic revenues.
21
The export price forecast decreased as a result of lower natural gas prices and growing volumes of wind
energy in the U.S., which are continuing to depress market prices for electricity. Domestic revenues were
lower than forecast due to the later implementation of the 3.95% rate increase on August 1, 2015 which was
forecast to be effective April 1, 2015. Further, 2.15% of the rate increase accrued to the Bipole III deferral
account rather than to net income.
Consolidated net income for 2015-16 was $18 million higher than the forecasted net income of $31 million
resulting from additional regulatory deferrals flowing from recent Public Utilities Board (PUB) rate decisions
as well as higher net extraprovincial revenues as a result of lower Manitoba load which allowed more energy
to be sold into the export market. These increases were partially offset by lower domestic revenues as a result
of warmer than normal winter weather and lower customer usage.
Financial Targets
Manitoba Hydro has three primary financial targets which are used to assess the financial strength of the
corporation. The first is to maintain a minimum equity ratio of 25%, a measure of the portion of assets that
are financed by internally generated funds rather than debt. The second is an earnings before interest, taxes,
depreciation and amortization interest coverage ratio with a minimum target of greater than 1.80, which
measures the ability to meet interest payment obligations with cash flow. The third is to maintain a capital
coverage ratio of greater than 1.20, which is a measure of the ability of cash flow from operations to fund
sustaining capital expenditures.
Consolidated net income of $49 million contributed to the corporations retained earnings of $2 828 million
at March 31, 2016. The equity ratio of 17% is lower than the 25% target. The decline in the equity ratio
since 2014 is primarily due to higher debt levels to fund significant investment in major new generation and
transmission facilities as well as transitional adjustments upon adoption of IFRS. The interest coverage ratio of
1.55 was below the target level of 1.80. The capital coverage ratio of 1.37 exceeded the target level of 1.20.
Equity Ratio
For the year ended March 31
Retained Earnings
millions of dollars
Target
3000
30
2 716*
2500
2 389
2 450
2 542
IFRS IFRS
2 779 2 828
2 239
2000
2 076
27
20
15
27
26
23
1 822
1500
27
25
25
24*
20
IFRS
18
IFRS
17
1 407
1000
10
500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
*On transition to IFRS on April 1, 2014, retained earnings was adjusted to $2 643 which reduced the equity
ratio to 21%.
22
Interest Coverage Ratio

Target
3.0
Capital Coverage Ratio

Target
2.4
2.2
2.0
2.5
2.43
1.83
1.5
1.8
2.16
2.0
2.06
1.96
1.74
1.81
1.77
1.6
1.95
IFRS
1.73
1.62
1.4
IFRS
1.55
1.35
1.2
1.0
1.10
1.34
1.25
1.13
1.25
IFRS
1.20
IFRS
1.37
0.8
1.0
0.6
0.4
0.5
0.2
0.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
0.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

The following table provides a summary of Manitoba Hydros consolidated statement of financial position.
2016
2015
millions of dollars
increase/
(decrease)
Current assets
Property, plant and equipment
Non-current assets
Total assets
Regulatory balances
Total assets and regulatory balances
1 485
17 208
601
19 294
486
19 780
1 067
15 222
868
17 157
410
17 567
418
1 986
(267)
2 137
76
2 213
Current liabilities
Long-term debt
Non-current liabilities
Total liabilities
Equity
Total liabilities and equity
Regulatory balances
Total liabilities, equity and regulatory balances
1 241
14 201
2 094
17 536
2 192
19 728
52
19 780
1 096
12 303
1 966
15 365
2 179
17 544
23
17 567
145
1 898
128
2 171
13
2 184
29
2 213
23
Significant changes are explained below:

Current assets increased by $418 million primarily as a result of the corporations practice to maintain larger
cash balances to enhance liquidity during the period of intensive capital investment. Manitoba Hydros practice
is to be funded approximately three months in advance of the corporations cash requirements.
Property, plant and equipment increased by $1 986 million for capital expenditures required to enhance
reliability, and to address new and increasing load requirements as well as infrastructure renewal.
Non-current assets decreased by $267 million as a result of the repayment of the advance by the St. Joseph
Windfarm and a reduction in sinking fund investments, partially offset by increases in advances to the
Indigenous partners investing in the Keeyask Generating Station.
Current liabilities increased by $145 million due to an increase in payables related to major capital projects
while long-term debt increased by $1 898 million to fund the investment in these projects. Non-current
liabilities increased by $128 million due to an increase in revenue set aside in the Bipole III deferral account
and higher employee future benefit obligations, which increased primarily as a result of lower returns on
pension assets.
Regulatory balances increased due to annual investment on Power Smart programs including the Demand
Side Management (DSM) deferral which captures the difference between actual and planned spending in
Power Smart programs. There were additional regulatory deferrals related to depreciation and overhead
costs, which were partially offset by the reduction of the purchased gas variance account (PGVA) associated
with the collection of prior period gas commodity costs from customers.
Consolidated Statement of Cash Flow
Manitoba Hydros primary sources of liquidity and capital are funds generated from operations and debt
financing through the Province of Manitoba. These sources are used for multiple purposes including
investment in generation, transmission and distribution facilities, to fund operating and maintenance activities
and to service long-term debt.
The following table provides a summary of Manitoba Hydros consolidated statement of cash flows.
2016
2015
millions of dollars
Cash and cash equivalents, beginning of year
Cash provided by operating activities
Cash used for investing activities
Cash provided by financing activities
Cash and cash equivalents, end of year
24
change
494
142
791
(2 440)
2 111
956
665
(1 873)
1 560
494
126
(567)
551
462
Cash from operating activities includes cash receipts from customers, cash paid to suppliers and employees
as well as interest payments.
Cash provided from operations in 2015-16 was $791 million, an increase of $126 million from the previous
year. The change reflects higher payable balances primarily related to the construction of the Keeyask
generation and transmission facilities and the Bipole III Reliability project and lower cost of gas largely due to
warmer weather and lower purchase gas costs compared to the previous year. This change is partially offset
by increased financing costs on higher levels of debt and lower domestic sales than the previous year.
The corporations electric and natural gas segments are capital intensive in nature and require continued
investment in infrastructure to construct new generation, transmission and distribution facilities, increase
capacity of existing facilities and maintain and improve service, reliability, safety and environmental performance.
Cash flow used in investing activities in 2015-16 was $2 440 million, compared to $1 873 million in 2014-15.
The increase was primarily due to higher expenditures for the Bipole III Reliability project.
Manitoba Hydros authority to issue debt is provided through The Loan Act, which is approved each year
and grants borrowing authority to meet the corporations new debt financing requriements. The Manitoba
Hydro Act grants the corporation the power to issue short-term promissory notes in the name of the MHEB
up to an aggregate sum of $500 million of principal outstanding at any one time. Authority to refinance
any maturing long-term debt is provided through The Financial Administration Act. The majority of Manitoba
Hydros long-term debt is obtained through advances from the Province of Manitoba.
The primary use of the long-term borrowing program is to provide debt financing for investment in new
generation and transmission. The primary use of the short-term borrowing program is to safeguard the
corporation from liquidity risk by providing a credit facility to support the corporations temporary cash
requirements. Both long and short-term borrowings are unconditionally guaranteed as to principal and
interest by the Province of Manitoba (except for mitigation bonds issued by the MHEB).
Cash provided by financing activities in 2015-16 was $2 111 million, compared to $1 560 million in 2014-15
and is comprised primarily of proceeds from long-term debt through advances from the Province. Proceeds
from financing arranged by the corporation amount to $2 165 million compared to $2 210 million in the
previous year. Current year proceeds were used to fund new capital requirements and to refinance long-term
debt maturing during the year. As a result of the low financing rates during 2015-16, the corporation was able
to issue debt at a weighted average rate of 2.87%. During 2015-16, the corporation refinanced $362 million
of debt which matured and was comprised of Provincial Advances of $300 million, HydroBonds of $50 million
and MHEB Bonds of $12 million.
25
Electric segment
The electric segment is responsible for the generation, transmission and distribution of electrical energy
adequate for the needs of the Province of Manitoba and engages in wholesale power related transactions
in order to assist in providing a reliable and dependable supply of power to Manitoba and to minimize the
net costs to Manitoba customers. The electric segment includes Manitoba Hydros ownership interests in
the Wuskwatim Power Limited Partnership, the Keeyask Hydropower Limited Partnership and a subsidiary
formed to participate in the development of a new transmission line to the U.S. Manitoba Hydro provides
electric service to 497 699 residential and 69 935 commercial and industrial customers in Manitoba.
Net income attributable to Manitoba Hydro in the electric segment was $37 million in 2015-16 compared
to a net income of $111 million in the previous fiscal year. The decrease in net income is a result of lower
domestic revenues primarily due to milder winter weather as well as an increase in capital investment related
expenses such as finance costs, depreciation and capital taxes associated with new plant going into service.
Electric Revenues
Domestic revenue includes the sale of electricity to residential, commercial and industrial customers
in Manitoba and other miscellaneous revenues. Residential customers are comprised of all housing types
including apartment blocks, seasonal cottages and farm houses. Commercial customers are comprised of small
and medium establishments including retail outlets, schools, universities and hospitals. Industrial customers
are comprised of large establishments who own their own transformation and are primarily engaged in
mining and/or manufacturing activities. Revenues are impacted by weather, electricity rates, customer growth
and energy usage. Other revenue in the electric segment includes amortization of customer contributions,
provision of services on customer owned plant and net rental revenue between Manitoba Hydro and other
telecom and cable providers.
Extraprovincial revenue includes revenues from Canadian and U.S. export sales as well as revenues from other
related export market activities such as arbitrage opportunities between wholesale energy markets, transmission
credits and the sale of renewable energy certificates. Canadian and U.S. sales include both dependable and
opportunity sales. Dependable sales are export contracts sourced from Manitoba Hydros hydraulic energy
available during lowest water conditions and are typically negotiated at least one year in advance and have a
duration of greater than six months. Opportunity sales are based on excess energy, are generally over shorter
periods and are transacted primarily in markets operated by an independent system operator such as the
Midcontinent Independent System Operator (MISO). Opportunity sales are also negotiated directly with a
purchasing party. Extraprovincial sales are impacted by changes in water flow conditions, export prices, foreign
exchange rates and domestic usage. Extraprovincial sales volumes are dependent on the availability of surplus
generation that requires favorable water flow conditions and the availability of transmission to export markets.
26
Total electric revenues were $1 845 million, an

increase of $7 million or 0.4% from the previous
year. This was the result of an increase of
$31 million in extraprovincial revenues, partially
offset by a $24 million decrease in domestic
revenues. Higher extraprovincial revenues were
primarily due to favorable U.S. exchange rates
and higher volumes sold in the opportunity sales
market, which were made available through
lower domestic load requirements during the
milder winter, partially offset by lower export
prices in the U.S. Decreases in domestic revenues
are a result of warmer winter weather and lower
customer usage.
Electric Revenues
millions of dollars
2500
2000
1500
1 561
1 652
1 694
1 739
1 877 IFRS IFRS

1 838 1 845
1 557 1 599 1 571
1000
500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Domestic
Extraprovincial
The breakdown of electric revenues is as follows:

Electric Revenues and kWh Sales
2016
2015 % change
millions of dollars
2016
2015 % change
millions of kWh
Domestic
Electricity sales
Residential
575
602
(4.5)
7 181
7 788
(7.8)
Commercial
495
501
(1.2)
6 876
7 158
(3.9)
Industrial
329
321
2.5
7 597
7 512
1.1
1 399
1 424
(1.8)
21 654
22 458
(3.6)
31
1 430
30
1 454
3.3
(1.7)
21 654
22 458
(3.6)
Dependable
206
183
12.6
2 701
3 132
(13.8)
Opportunity
197
193
2.1
7 580
6 679
13.5
12
50.0
415
384
8.1
10 281
9 811
4.8
1 845
1 838
0.4
31 935
32 269
(1.0)
Other revenue
Domestic revenue
Extraprovincial
Other
Extraprovincial revenue
27
Revenues from electricity sales in Manitoba totaled $1 399 million in 2015-16, a decrease of $25 million
from the previous year. Electricity consumption in Manitoba was 21 654 million kilowatt-hours, 804 million
kilowatt-hours lower than the previous year. The decrease in consumption was mainly due to warmer winter
weather and lower customer usage.
Revenues from sales to residential customers for 2015-16 amounted to $575 million, a decrease of
$27 million or 4.5% from the previous year. The decrease was primarily a result of a lower heating load from
15% warmer winter weather and lower customer usage partially offset by rate increases implemented during
the year and increases in the number of residential customers of 5 424 to 497 699, an increase of 1.1%
compared to the previous year.
Revenues from commercial customers amounted
to $495 million in 2015-16, a decrease of $6 million or
1.2% from the previous year. The decrease was mainly
attributable to warmer winter weather and lower customer
usage partially offset by rate increases implemented during
the year and an increase of 334 customers.
Electric Revenues
For the year ended March 31, 2016
Revenues from industrial customers amounted to

$329 million, an increase of $8 million or 2.5% from the
previous year. The increase was mainly the result of rate
increases implemented during the year, an increase in
consumption by customers and an increase of 7 customers.
Extraprovincial revenues totaled $415 million in 2015-16,
an increase of $31 million from the previous year. The
increase reflects favorable foreign exchange rates on U.S.
sales and higher opportunity sales volumes due to lower
Manitoba consumption, partially offset by lower export
prices. Of the total extraprovincial revenues, $385 million
or 93% was derived from the U.S. market, $27 million or 6%
was from sales to Canadian markets and $3 million or 1%
was related to arbitrage opportunities between wholesale
energy markets.
Residential
31%
General service
27%
Extraprovincial
22%
Industrial
18%
Other
2%
Electric Rates
The PUB approved a 3.95% electricity rate increase for all customer classes effective August 1, 2015 and
directed that 1.8% of the increase be included in general revenue and the remaining 2.15% be added to the
previously established deferred revenue account to mitigate rate increases when the Bipole III project comes
into service. During the 2015-16 fiscal year $51 million was set aside for this purpose, which reflects the total
of 1.5% approved by the PUB effective May 1, 2013, the 0.75% effective May 1, 2014 and the 2.15% effective
August 1, 2015. At the end of fiscal 2016, the balance in this deferral account totals $100 million.
28
Manitoba Hydros domestic electricity rates

continue to be among the lowest overall in North
America. This is illustrated in the accompanying
chart which was excerpted from utilities annual
reports and United States Department of Energy
and Edison Electric Institute publications.
Average Retail Price of Electricity

cents/kWh (Cdn)
20
18.8
18
16
14
13.7
12
10
9.8
10.1
10.5 10.6
12.1
10.9
8.3
6.8
6.5
4
2
c
Co
lu
m
bi
sk
a
at
ch
ew
W an
yo
m
in
g
Ke
nt
uc
ky
Te
N
or
xa
th
s
D
a
So
ut kota
h
D
ak
ot
M
a
in
ne
so
W
ta
isc
on
sin
O
nt
ar
Ca io
lif
or
ni
a
be
sh
Sa
ito
Br
iti
an
ue
ba
Electric Expenses
Electric expenses totaled $1 893 million for
2015-16, an increase of $114 million or 6.4%
over the previous year. The increase in expenses
was mainly the result of a $71 million increase in
net finance expense, $28 million increase in other
expenses, a $15 million increase in depreciation
and amortization, a $7 million increase in capital
and other taxes and a $5 million increase in
operating and administrative, partially offset by a
$12 million decrease in fuel and power purchased.
11.7
13.9
The breakdown of electric expenses is as follows:

Electric Expenses
Operating and administrative

Finance expense
Depreciation and amortization
Water rentals and assessments
Fuel and power purchased
Capital and other taxes
Other expenses
Corporate allocation
Finance income
2016
2015
millions of dollars
543
538
582
515
367
352
126
125
117
129
107
100
65
37
8
9
(22)
(26)
1 893
1 779
% change
0.9
13.0
4.3
0.8
(9.3)
7.0
75.7
(11.1)
(15.4)
6.4
Operating and administrative expenses are comprised primarily of labour and benefits, materials, contracted
services and overhead costs associated with operating, maintaining and administering the facilities and programs
of the corporation and providing services to customers.
29
In 2015-16, operating and administrative expenses for electric operations amounted to $543 million, an
increase of $5 million or 0.9% over 2014-15 which is lower than the Manitoba Consumer Price Index of 1.3%.
The minimal year over year increase demonstrates Manitoba Hydros ongoing efforts to manage its operating
and administrative expenses to below inflationary levels. This reduction is a benefit to both electric and natural
gas segments.
The increase in operating and administrative expenses is attributable to lower capitalization of overhead costs, an
increase to bad debt expense and higher software license and maintenance contract expenditures. This increase
is partially offset by lower benefit costs as a result of changes in the discount rate as well as the impact of various
cost saving initiatives including the reduction of 400 operational positions over the past two years through
attrition, the application of technology and the consolidation and elimination of work processes.
Finance expense includes interest on short and long-term borrowings and the provincial debt guarantee fee
paid to the Province of Manitoba, foreign exchange gains and losses, accretion expense on provisions and other
long-term liabilities, partially offset by interest capitalized for those qualifying assets under construction. Finance
expense is impacted by borrowing requirements for capital investment, interest rates on borrowings and the
capitalization of interest.
Finance expense totaled $582 million in 2015-16, an increase of $67 million or 13.0% from the previous year.
The increase was primarily due to financing costs associated with plant being placed into service including a full
year of finance expense on the replacement of the Pointe du Bois spillway and the new Riel 230/500 kV station.
The foreign exchange impact from the weakening Canadian dollar increased interest costs on U.S. long-term debt.
These increases to finance expense were partially offset by lower interest rates on new long-term debt issues.
Depreciation and amortization includes depreciation of property, plant and equipment and amortization of
intangible assets as well as any gains or losses on disposal of assets.
Depreciation and amortization expense amounted to $367 million in 2015-16, an increase of $15 million or
4.3% from the previous year. The increase was mainly attributable to new additions to plant and equipment
coming into service including a full year of depreciation for the replacement of the Pointe du Bois spillway and
the new Riel 230/500 kV station.
Water rentals and assessments includes water rentals paid to the Province of Manitoba for the use of water
resources in the operation of the corporations hydraulic generating stations and assessments paid to various
regulatory and market organizations. Water rentals and assessments amounted to $126 million in 2015-16 as
compared to $125 million in the prior year. The slight increase is due to higher assessments to participate in
the U.S. export market as a result of foreign exchange impacts. Hydraulic generation amounted to 35.0 billion
kilowatt-hours in 2015-16 which is consistent with the previous year.
Fuel and power purchased includes fuel for the thermal generating stations and remote diesel sites, purchased
electrical energy from external Canadian and U.S. suppliers, wind power purchased from the independently-owned
St. Leon and St. Joseph wind farms and transmission charges. Fuel and power purchases are impacted by weather,
30
market prices for electricity and water flow

conditions. If water conditions are low, electricity
purchases are necessary to meet the energy
requirements of Manitobans. Manitoba Hydro
has experienced higher than average hydraulic
generation over the past several years largely
as a result of favorable water supply conditions
reducing the requirement to purchase power.
Fuel and power purchased was $117 million in
2015-16, a decrease of $12 million or 9.3% from
2014-15. The decrease was primarily due to
lower wind purchases resulting from lower wind
generation and reduced import volumes due to
milder winter weather compared to the previous
year, partially offset by increased U.S. transmission
charges due to the impact of the weakening
Canadian dollar.
Hydraulic Generation
billions of kWh
40
35
34.9
31.6
34.2
35.3
33.8
34.0
33.1
35.0
35.0
33.1
30
25
20
15
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Generation
Average Generation
*Average hydraulic generation is based on the historic

river flows since 1912 and the current hydroelectric
generation fleet
Capital and other taxes includes payments to the Province of Manitoba for capital and payroll tax and to
municipalities within the Province of Manitoba for property taxes.
Capital and other taxes amounted to $107 million in 2015-16, an increase of $7 million or 7.0% compared to
the previous year. The change was primarily due to increased capital taxes as a result of higher debt levels related
to additional capital investment.
Other expenses include expenditures associated with Power Smart programs designed to reduce overall energy
consumption and assist customers in managing their energy costs as well as other miscellaneous expenditures.
The majority of other expenses are removed from the statement of income, deferred and subsequently amortized
through net movement in regulatory balances.
Other expenses amounted to $65 million in 2015-16, an increase of $28 million or 75.7% compared to the
previous year. The increase was primarily due to higher investment in Power Smart programs related to the
implementation of LED street lighting, an oilfield project to convert the harnessing of flare gases at oil pumping
rigs to electricity and increased customer participation for the commercial lighting and fridge recycling programs.
Electric Power Smart expenditures for the year totaled $54 million, an increase of $23 million over 2014-15.
31
Electric Expenses
Finance expense (net)
30%
Operating and administrative 29%

Depreciation and amortization 19%
Water rentals and assessments 7%
6%
6%
Other expenses
3%
Electric Net Movement in Regulatory Balances

The corporations financial results were prepared using the interim standard IFRS 14 Regulatory Deferral
Accounts which allows Manitoba Hydro to continue to recognize regulated balances for financial reporting
purposes. This results in the deferral of costs and recoveries that under IFRS would otherwise be recorded as
expenses or income in the current accounting period. The deferred amounts are either recovered or refunded
through future rate adjustments.
The net movement in regulatory balances captures the timing differences between financial reporting under
IFRS and those amounts approved by the PUB for rate-setting purposes. The change in the net movement in
regulatory balances of $34 million was primarily due to higher Power Smart expenditures, as discussed above,
which are removed from the statement of income through net movement in regulatory balances, deferred
and subsequently amortized to net income.
Electric Capital Expenditures
The electric capital expenditure program relates to investments in major new generation and transmission
facilities, as well as additions, improvements and replacement of existing infrastructure, referred to as sustaining
capital.
Expenditures for capital construction totaled $2 255 million in 2015-16 compared to $1 849 million
during the previous fiscal year. This includes $1 722 million for the development of new major generation
and transmission facilities, an increase of $398 million when compared to 2014-15. Current
year expenditures include $872 million (2015 - $360 million) for the Bipole III Reliability project and
$742 million (2015 - $700 million) for the Keeyask Generating Station.
The Bipole III Reliability project will strengthen reliability of Manitoba Hydros electricity supply by reducing
dependency on existing high voltage direct current transmission lines and the Dorsey Converter Station
which are relied upon to deliver over 70 per cent of the electricity produced in Manitoba. The Bipole III
Reliability project includes a 1 384 kilometre, 500 kilovolt (kV) transmission line with two converter stations.
32
The two new converter stations, the Keewatinohk Converter Station and the Riel Converter Station, will
provide additional capacity to existing Bipole I and II HVDC transmission systems. The project also provides
additional capacity for delivery of existing and proposed hydroelectric generation to southern Manitoba.
During the 2016 fiscal year, site development work was completed at the Keewatinohk site with the grand
opening of the Keewatinohk Lodge in September 2015. Fall of 2015 marked the full ramp up of construction
at both the Keewatinohk and Riel Station sites. To date, all land has been secured, transmission line clearing
is 95 per cent complete, over 60 per cent of anchors and foundations have been installed and the first tower
was erected. At March 31, 2016 expenditures for the Bipole III Reliability project totaled $1 779 million.
The Keeyask Generating Station will be a source of renewable energy, providing approximately 695 megawatts
of capacity and producing an average of 4 400 gigawatt hours of electricity each year. The renewable
hydroelectric energy produced will be integrated into the corporations electric system to maintain a reliable
supply for Manitoba with surplus energy available for export until necessary to meet domestic requirements.
During the 2016 fiscal year, excavation for the spillway was completed and powerhouse excavation was
substantially complete which will allow for major concrete activities to occur in the spring and summer of
2016. In addition, the construction of the 2 000 person Keeyask camp was completed. At March 31, 2016,
total expenditures for Keeyask generation and related transmission amounted to $2 359 million.
Capital expenditures needed for additions,
improvements and replacement of existing
infrastructure amounted to $533 million, an
increase of $9 million compared to the previous
fiscal year. This includes investments in urban
and rural distribution station development such
as the new Madison and Adelaide substations
required to address increasing load requirements.
In addition, transmission capacity enhancements
in the Winnipeg area and Lake Winnipeg East
vicinity were necessary to accommodate higher
than average load growth and system expansion.
Manitoba Hydro is also investing in the
replacement and refurbishment of existing assets
to address asset degradation and obsolescence
given that many of the corporations assets were
installed several decades earlier.
Electric Capital Expenditures

millions of dollars
2400
2200
IFRS
2 255
2000
1800
IFRS
1 849
1600
1400
1 348
1200
1000
1 038
800
600
801
1 137 1 093
1 003
888
616
400
200
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Sustaining Capital
New Generation & Transmission
33
Wuskwatim Power Limited Partnership

The Wuskwatim Power Limited Partnership (WPLP) owns and operates the Wuskwatim Generating Station
and related works, excluding the transmission facilities. The WPLP has two limited partners, Manitoba Hydro
and Taskinigahp Power Corporation, which is owned beneficially by Nisichawayasihk Cree Nation, and a
General Partner which is a wholly-owned subsidiary of Manitoba Hydro.
The WPLP reported a net loss for 2015-16 of $31 million which is consistent with the expectations for
the early years of operation. This is compared to a net loss of $34 million in 2014-15. Manitoba Hydros
67% share of the loss was $21 million (2015 - $23 million) and TPCs 33% share of the loss was $10 million
(2015 - $11 million).
Keeyask Hydropower Limited Partnership
The Keeyask Hydropower Limited Partnership (KHLP) was formed to carry on the business of developing,
owning and operating the Keeyask Generating Station and related works excluding the transmission facilities
but including all dams, dikes, channels, excavations and roads. Manitoba Hydro, Cree Nation Partners (owned
beneficially by Tataskweyak Cree Nation and War Lake), FCLN Keeyask Investments Inc. (owned beneficially by
Fox Lake) and York Factory First Nation Limited Partnership (owned beneficially by York Factory) are limited
partners of KHLP. The General Partner is a wholly-owned subsidiary of Manitoba Hydro. The KHLP will have
no impact on the statement of income until the generating station goes into service.
Natural gas segment

Centra Gas Manitoba Inc. (Centra) is a wholly-owned subsidiary of Manitoba Hydro. Centra distributes natural gas
to 251 142 residential and 25 716 commercial and industrial customers in Manitoba.
The net loss in the natural gas segment was $1 million in 2015-16 compared to net income of $11 million in the
previous fiscal year. The decrease in net income over the previous year was primarily attributable to lower demand
due to milder weather during the winter of 2015-16 compared to the winter of 2014-15 and lower customer
usage partially offset by a decrease in operating and administrative expenses.
Natural Gas Revenues and Cost of Gas
For the natural gas segment, customer classes are distinguished based on the level of annual consumption and
include residential, large and small general service, large commercial and industrial as well as interruptible and
transportation service. Interruptible customers may have service interrupted periodically upon notice in exchange
for a reduced rate. Transportation service customers purchase their own gas commodity and pay only for the delivery
of natural gas.
Revenues from the sale and distribution of natural gas during 2015-16 were $354 million, a decrease of $74
million from the previous year. The decrease in revenue is primarily due to the impact of warmer winter weather,
lower gas costs and lower customer usage. Natural gas deliveries were 1 846 million cubic metres in 2015-16
34
compared to 2 071 million cubic metres in 2014-15. The cost of gas is incorporated into the rates charged to
customers and as such, as gas costs decrease there is a corresponding decrease in revenue.
As directed by the PUB, $3.8 million of revenue from 2015-16 was set aside to continue a program targeted
to low-income customers and qualifying seniors on fixed incomes to assist in the replacement of low efficiency
furnaces with high efficiency furnaces. At March 31, 2016, there is a remaining balance of $21 million in the
Furnace Replacement Program.
The breakdown of natural gas revenue is as follows:
Natural Gas Revenues and Deliveries
2016
2015 % change
millions of dollars
Residential
Large general service
Large commercial & industrial
Small general service
Interruptible
Transportation service and other
Revenue
177
109
29
26
7
6
354
213
132
32
34
11
6
428
(16.9)
(17.4)
(9.4)
(23.5)
(36.4)
(17.3)
2016
2015 % change
millions of cubic metres
498
463
154
87
44
600
1 846
597
537
166
109
58
604
2 071
(16.6)
(13.8)
(7.2)
(20.2)
(24.1)
(0.7)
(10.9)
The actual cost of gas purchased is comprised of all expenses incurred in the procurement and delivery of
natural gas to the Manitoba marketplace, including commodity supply, transportation and storage costs either
from Western Canada or U.S. sources.
Centra purchased 936 million cubic metres of natural gas based on monthly Alberta indexed pricing,
193 million cubic metres under daily Alberta indexed pricing and 230 million cubic metres from a number
of other supply sources. Centra also delivered natural gas on behalf of brokers to 14 145 (2015 15 875)
customers receiving natural gas under Direct Purchase arrangements.
The cost of gas during 2015-16 was $181 million, a decrease of $85 million from the previous year.
This decrease results from lower purchased gas costs driven by low market prices and an abundant supply
of natural gas as well as lower purchased volumes due to the impact of warmer winter weather and lower
customer usage.
The differences between the cost of gas embedded in customer rates and the actual cost of gas purchased
are accumulated in the PGVAs, which ensures that only the actual cost of gas, no more or less, is passed on to
35
customers. Any differences in these accounts are either refunded to, or collected from customers in future rates.
For income statement purposes the actual cost of gas purchased is adjusted in the net movement in regulatory
balances for the impact of the PGVA accounts. For 2015-16, the total of actual cost of gas purchased
combined with the PGVA adjustment is $215 million compared to $274 million for 2014-15.
The resulting gross margin after considering the net movement in PGVAs is $139 million for 2015-16
compared to $154 million for 2014-15, which is a reduction of $15 million due to warmer winter weather
and lower customer usage.
Natural Gas Rates
In accordance with Centras quarterly rate-setting methodology, annualized rates for natural gas supplied to
residential customers changed during 2015-16 as follows:
- May 1, 2015
- August 1, 2015
- November 1, 2015
- February 1, 2016
1.7% decrease
unchanged
0.7% increase
3.2% decrease
The change in natural gas rates reflects the fluctuations in pricing for natural gas purchased by Centra, as well
as the recovery of gas costs from prior periods.
Natural gas prices have been declining since 2009 and natural gas customers have benefited as a result.
The total annual natural gas bill for a typical residential customer in Manitoba in 2015-16 was 32% lower than
in 2005-06.
Centra did not apply to the PUB for a general rate increase related to non-gas costs in 2015-16.
Centra offers a fixed rate service for primary natural gas supply which allows customers to fix their natural gas
rates for terms of up to five years. The fixed rate service is offered to residential and commercial customers.
At March 31, 2016 there were 154 customers (2015 209 customers) on Centras fixed rate service.
Total natural gas deliveries under this service were 1.4 million cubic metres (2015 2.9 million cubic metres).
Natural Gas Expenses
Expenses attributable to the natural gas operations, excluding cost of gas sold amounted to $148 million
in 2015-16, which was $1 million lower than the previous year primarily due to a decrease of $3 million in
operating and administrative expense partially offset by a $1 million increase in depreciation and amortization
and a $1 million increase in finance expense. The decrease in operating and administrative expenses results
from the effects of ongoing cost saving initiatives as well as fewer requests from customers for miscellaneous
services. The increase in depreciation and amortization and finance expense is due to additions to capital
assets and associated financing costs.
36

45%
Depreciation and amortization 16%

Finance expenses
13%
11%
8%
Other expenses
7%


Finance expense
Other expenses
2016
2015
millions of dollars
67
70
20
19
23
22
16
16
10
10
12
12
148
149
% change
(4.3)
5.3
4.5
(0.7)
Natural Gas Net Movement in Regulatory Balances

The natural gas net movement in regulatory balances captures the timing differences between financial
reporting under IFRS and those amounts approved by the PUB for rate-setting purposes. The change in
the net movement in regulatory balances of $25 million was primarily the result of the change in the PGVA
balance due to lower purchased gas costs.
Natural Gas Capital Expenditures
The capital expenditure program relates to new business, system improvement and other expenditures to
meet the needs of the natural gas customers. Capital expenditures in the natural gas sector were $40 million
in 2015-16 compared to $27 million in the previous fiscal year. The increase is primarily due to providing
additional capacity to areas surrounding Winnipeg as well as system upgrades in order to meet reliability,
safety and operational requirements.
37
Other segment
In addition to Centra, Manitoba Hydro has the following wholly-owned subsidiaries involved in energy-related
business enterprises:
Manitoba Hydro International Ltd. (MHI) provides professional consulting, operations, maintenance and
project management services to energy sectors world-wide, either exclusively or through partnerships. MHI
also provides research and development services and products to the electrical power system industry.
Manitoba Hydro Utility Services Ltd. (MHUS) provides meter reading and related services to Manitoba
Hydro, Centra and other utilities.
Manitoba Hydro also owns Minell Pipelines Ltd. (Minell) and Teshmont LP Holdings Ltd. (Teshmont).
The following table provides a summary of the financial results of the subsidiary companies, excluding Centra,
for the fiscal year ended March 31, 2016 compared to the previous fiscal year. The results of Minell and
Teshmont are included in Other in the table below:
MHI
Revenues
Expenses
Net income (loss)
38
2016
2015
61.5
52.8
8.7
51.9
43.3
8.6
MHUS
Other
2016
2015
2016
2015
millions of dollars
4.9
5.3
0.8
0.5
5.0
5.5
0.3
0.2
(0.1)
(0.2)
0.5
0.3
Total
2016
2015
67.2
58.1
9.1
57.7
49.0
8.7
Risk management
Manitoba Hydro faces a number of risks in the fulfillment of its mission and mandate. These risks are managed
through a systematic, proactive and integrated process which is designed to balance the objectives of:
identifying threats that affect the achievement of the corporations mission and mandate;
mitigating the consequences of negative occurrences; and
taking advantage of opportunities to provide benefits to all stakeholders.
Most risk management efforts are focused on reducing the occurrence of negative events. However, the
corporation also has plans in place to reduce the impacts should a negative event occur. These plans are
under continual assessment. In addition, all safety and reliability risks are managed through strict adherence
to design, construction and operating standards and practices together with extensive public education and
employee training programs. A comprehensive Emergency Response Program is also in place to ensure an
effective and coordinated response to possible emergencies or disasters.
The financial and operational risks associated with the management of an integrated electricity and natural gas
utility are significant. These risks include the impacts of new infrastructure development, aging infrastructure
renewal and replacement, weather on supply and demand, price and market uncertainties, interest, inflation
and foreign exchange rates, skilled labour availability and costs, increasing regulatory, environmental and
legal requirements and accelerated technological change. Manitoba Hydro manages these risks through an
integrated control framework and through the maintenance of an adequate level of financial reserves through
retained earnings.
The most significant risks facing Manitoba Hydro are catastrophic infrastructure failure, extreme drought,
loss of export market access and higher interest rates. These risks are quantified in the following table:
RISK
Infrastructure
Drought
Loss of export market
Interest rates
POTENTIAL FINANCIAL IMPACT

Greater than $2.0 billion
Greater than $1.9 billion for a five year drought
Greater than 30% of electricity revenue
Approximately $1.0 billion for a 1% change over 10 years
39
Transition to IFRS
Manitoba Hydro transitioned to IFRS on April 1, 2014 with retrospective application of changes in accounting
policies resulting from differences from existing Canadian generally accepted accounting principles.
The transition to IFRS also resulted in the restatement of net income and other comprehensive income
for 2014-15 for comparative purposes. In addition, adjustments to net income for 2014-15 reflect recent
PUB rate decisions with respect to the deferral of differences in depreciation methods and overhead costs.
The following table summarizes the changes to equity to March 31, 2015. Information pertaining to these
adjustments is included in Note 6 of the Consolidated Financial Statements.
Retained Earnings
Accumulated Other
Comprehensive Loss
millions of dollars
2 830
(161)
(73)
(28)
50
(432)
(127)
(51)
(559)
2 779
(720)
Equity under Canadian GAAP - March 31, 2015

April 1, 2014 IFRS opening balance adjustments
2014-15 IFRS net income/other comprehensive income adjustments
2014-15 net income regulatory deferral adjustments
Equity under IFRS - March 31, 2015
40
Outlook
Manitoba Hydro entered fiscal 2016-17 with above average water storage levels but runoff in the spring of
2016 was slightly below average due to below normal snowpack conditions over much of the basin. Inflows
recovered to average by early June as a result of late spring rains. The May through September period is
critical to overall water supply conditions as this is the period when most precipitation occurs. Although there
remains considerable uncertainty in overall water supply conditions for the remainder of the year, given the
above average storage levels at the beginning of the fiscal year and assuming normal precipitation going
forward, hydraulic generation is expected to be above average for 2016-17. Short term export market prices
in 2015-16 were down considerably from 2014-15 largely due to low natural gas prices combined with
mild winter conditions throughout much of the mid-western U.S. Export prices for the first three quarters
of 2016-17 are expected to resemble prices experienced this past year, with a recovery expected for the
last quarter assuming normal winter weather. Based on current conditions, Manitoba Hydro expects its net
income for 2016-17 to be marginally higher than what was experienced in 2015-16.
The corporations earnings can fluctuate significantly due to various non-controllable factors such as the
level of water inflows, weather, domestic load requirements, market prices for electricity and interest rates.
The impact on earnings with respect to water inflows is particularly sensitive to spring and summer precipitation
levels. The net income outlook for 2016-17 assumes the continuation of current water flow and export
market conditions and normal winter weather.
41
42
Management Report
The accompanying consolidated financial statements have been prepared by management of the Manitoba Hydro-Electric
Board (the corporation), who are responsible for the integrity, consistency and reliability of the information presented.
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards.
The preparation of the consolidated financial statements necessarily involves the use of estimates and assumptions
based on managements judgments, particularly when transactions affecting the current period cannot be finalized with
certainty until future periods. Estimates and assumptions are based on historical experience, current conditions and
various other assumptions believed to be reasonable in the circumstances. The preparation of the consolidated financial
statements includes information regarding the estimated impact of future events and transactions. Actual results in the
future may differ from the present assessment of this information because future events and circumstances may not
occur as expected. The consolidated financial statements have been prepared within reasonable limits of materiality in
light of information available up to July 6, 2016.
In meeting its responsibility for the reliability of financial information, management maintains and relies on a
comprehensive system of internal controls, which is designed to provide reasonable assurance that that the corporations
assets are safeguarded and appropriately accounted for, that financial information is relevant, reliable and accurate, and
that transactions are properly authorized and executed. The system includes formal policies and procedures as well as the
appropriate delegation of authority and segregation of responsibilities within the organization. An internal audit function
evaluates the effectiveness of these controls and reports its findings to management and the Audit Committee of the
Board of Directors.
The Board of Directors, through the Audit Committee, is responsible for ensuring that management fulfills its responsibility
for financial reporting and internal controls. The Audit Committee, which is comprised of outside and unrelated directors,
meets periodically with management, the internal auditors and the external auditors to satisfy itself that each group
has properly discharged its responsibility with respect to internal controls and financial reporting. The Audit Committee
reviews the consolidated financial statements and managements discussion and analysis and recommends their approval
to the Board of Directors. The external auditors have full and open access to the Audit Committee, with and without the
presence of management, to discuss their audit and their findings as to the integrity of the financial reporting and the
effectiveness of the system of internal controls.
The consolidated financial statements were reviewed by the Audit Committee, and on their recommendation, were approved
by the Board of Directors. The consolidated financial statements have been examined by Ernst & Young LLP, Chartered
Professional Accountants, as appointed by the Lieutenant Governor in Council. The external auditors responsibility is to
express their opinion on whether the consolidated financial statements are fairly presented in accordance with International
Financial Reporting Standards. The Auditors Report outlines the scope of their examination and their opinion.
On behalf of management:
Kelvin Shepherd, P. Eng

Darren B. Rainkie, CPA, CA, CBV
President & Chief Executive Officer
Vice-President, Finance & Regulatory Affairs
Manitoba Hydro & Chief Financial Officer
Winnipeg, Canada
July 6, 2016
43
Independent Auditors Report

To the Board of Directors of Manitoba Hydro-Electric Board
We have audited the accompanying consolidated financial statements of Manitoba Hydro-Electric Board,
which comprise the consolidated balance sheet as at March 31, 2016 and 2015, and April 1, 2014, and
the consolidated statements of income, comprehensive income, accumulated other comprehensive income,
retained earnings and cash flows for the years ended March 31, 2016 and 2015, and a summary of significant
accounting policies and other explanatory information.
Managements responsibility for the consolidated financial statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements
in accordance with International Financial Reporting Standards, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
Auditors responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on the auditors judgment, including
the assessment of the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the
entitys preparation and fair presentation of the consolidated financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position
of Manitoba Hydro-Electric Board as at March 31, 2016, and 2015, and April 1, 2014, and the results of its
operations and its cash flows for the years ended March 31, 2016 and 2015 in accordance with International
Financial Reporting Standards.
Winnipeg, Canada,
July 6, 2016 Chartered Professional Accountants
44

millions of Canadian dollars
Notes
2016
2015
1 399
1 424
353
427
Revenues
Domestic
Electric
Gas
Extraprovincial
415
384
Other
91
81
2 258
2 316
181
266
620
551
10
614
614
11
394
378
126
125
Expenses
Cost of gas sold
Finance expense

12
117
129
13
123
115
Other expenses
14
114
77
(23)
(26)
2 266
2 229
(8)
87
47
38
39
125
49
136
(10)
(11)
39
125
Finance income
Net income (loss) before net movement in regulatory balances

22
Net Income

Manitoba Hydro
30
The accompanying notes are an integral part of the consolidated financial statements.
45

March 31,
March 31,
April 1,
Notes
2016
2015
2014
Cash and cash equivalents
15
956
494
142
Accounts receivable and accrued revenue
16
372
427
478
40
47
47
117
99
81
1 485
1 067
748
18
17 208
15 222
13 629
19
114
111
107
107
107
As at
Assets
Current Assets
Prepaid expenses
Inventory
Property, Plant and Equipment
17
Non-Current Assets
Sinking fund investments
Goodwill
Intangible assets
20
194
183
174
Loans and other receivables
21
300
464
411
601
868
803
19 294
17 157
15 180
486
410
371
19 780
17 567
15 551
Total assets before regulatory deferral balance

Regulatory deferral balance
Total assets and regulatory deferral balance
22
On behalf of the Board of Directors:
46
H. Sanford Riley
Michael C. Pyle, MBA
Chair of the Board
Chair of the Audit Committee
March 31,
March 31,
April 1,
Notes
2016
2015
2014
Current portion of long-term debt
23
326
377
408
Accounts payable and accrued liabilities
24
723
529
537
Other liabilities
25
88
94
84
104
96
93
1 241
1 096
1 122
23
14 201
12 303
10 460
Other long-term liabilities
26
670
686
530
Employee future benefits
27
859
804
618
Deferred revenue
28
535
459
398
Provisions
29
30
17
21
2 094
1 966
1 567
17 536
15 365
13 149
2 828
2 779
2 643
Accumulated other comprehensive loss
(776)
(720)
(336)
Equity attributable to Manitoba Hydro
2 052
2 059
2 307
140
120
73
2 192
2 179
2 380
19 728
17 544
15 529
52
23
22
19 780
17 567
15 551
As at
Liabilities and Equity
Current Liabilities
Accrued interest
Long-Term Debt
Non-Current Liabilities
Total liabilities
Equity
Retained earnings
30
Total equity
Total liabilities and equity before regulatory deferral balance
Total liabilities, equity and regulatory deferral balance
22
47

Notes
2016
2015
2 298
2 359
(950)
(1 203)
23
26
(580)
(517)
791
665
Operating Activities
Cash receipts from customers
Cash paid to suppliers and employees
Interest received
Interest paid
Cash provided by operating activities
Investing Activities
Additions to property, plant and equipment
18
(2 372)
(1 802)
Contributions received
28
92
72
Cash paid to the City of Winnipeg
26
(16)
(16)
Cash paid for mitigation obligations
26
(33)
(13)
Cash paid for major development obligations
26
(22)
(9)
(89)
(105)
(2 440)
(1 873)
Other
Financing Activities
Proceeds from long-term debt
23
2 165
2 210
Retirement of long-term debt
23
(362)
(654)
Repayment from/(advances to) external entities
21
164
(51)
Proceeds from partnership issuances
30
30
58
Sinking fund investment withdrawals
19
246
111
Sinking fund investment purchases
19
(132)
(114)
2 111
1 560
Net increase in cash and cash equivalents
462
352
Cash and cash equivalents, beginning of year
494
142
Cash and cash equivalents, end of year
956
494
48

Notes
Net Income
2016
2015
39
125
(8)
(127)
(47)
(249)
(1)
(8)
(56)
(384)
(17)
(259)
(7)
(248)
(10)
(11)
(17)
(259)
Other comprehensive loss

Items that will not be reclassified to income
6
Net experience losses on pensions

Items that will be reclassified to income
Cash flow hedges - unrealized foreign exchange losses on debt
Items that have been reclassified to income
Cash flow hedges - realized foreign exchange gains on debt
Comprehensive Loss
Comprehensive loss attributable to:

Manitoba Hydro
49
Consolidated Statement of Changes in Equity

For the year ended
Retained
Notes Earnings
Accumulated
Other
Comprehensive
Income/ (Loss)
2 643
(336)
2 307
73
2 380
136
136
(11)
125
(384)
(384)
(384)
136
(384)
(248)
(11)
(259)
58
58
2 779
(720)
2 059
120
2 179
49
49
(10)
39
(56)
(56)
(56)
49
(56)
(7)
(10)
(17)
30
30
2 052
140
2 192
Balance as at April 1, 2014

Net income (loss)
Comprehensive income (loss)
Change in ownership interest
30
Balance as at March 31, 2015

Net income (loss)
Comprehensive income (loss)
Change in ownership interest
30
Balance as at March 31, 2016
2 828
(776)
NonManitoba Controlling
Hydro
Interests
50
Total
Equity
Notes to the Consolidated Financial Statements

(in millions of Canadian dollars)
Note 1
Reporting entity
The Manitoba Hydro-Electric Board and the Manitoba Power Commission were amalgamated in
1961 by enactment of The Manitoba Hydro Act to form a Crown corporation in the Province of
Manitoba named Manitoba Hydro (the corporation). Manitoba Hydros mandate is to provide for
the continuance of a supply of energy adequate for the needs of the Province and to engage in
and to promote economy and efficiency in the development, generation, transmission, distribution,
supply and end-use of energy. The head office of the corporation is located at 360 Portage Avenue,
Winnipeg, Manitoba.
These consolidated financial statements include the accounts of Manitoba Hydro and its wholly-owned
subsidiaries including Centra Gas Manitoba Inc. (Centra), Minell Pipelines Ltd. (Minell), Manitoba Hydro
International Ltd. (MHI), Manitoba Hydro Utility Services Ltd. (MHUS), Teshmont LP Holdings Ltd.
(which has a 40% ownership interest in the Teshmont Consultants Limited Partnership) and 6690271
Manitoba Ltd. (a subsidiary which was formed to participate in the development of a new transmission
line in the U.S.). These consolidated financial statements also include Manitoba Hydros 67% ownership
interest in the WPLP and its 75% ownership interest in the KHLP. For purposes of consolidation, all
significant intercompany accounts and transactions have been eliminated.
Note 2
(a)
Basis of presentation
Statement of compliance
These consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS). IFRS 1 First-time Adoption of IFRS has been applied as at April 1, 2014, the
corporations transition date to IFRS. For all periods up to and including the year ended March 31, 2015,
Manitoba Hydro prepared its consolidated financial statements in accordance with Canadian Generally
Accepted Accounting Principles (CGAAP). These consolidated financial statements for the year ended
March 31, 2016 are the first Manitoba Hydro has prepared in accordance with IFRS.
An explanation of the application of IFRS 1 is included in Note 5 Transition to IFRS and an explanation
of how the transition to IFRS from CGAAP affected the corporations previously reported financial
position, financial performance and cash flows is included in Note 6 Reconciliations of CGAAP to IFRS.
These consolidated financial statements were approved for issue by the Manitoba Hydro-Electric
Board on July 6, 2016.
51

(b)
Basis of measurement
These consolidated financial statements have been prepared on a historical cost basis except for the
following material items in the consolidated statement of financial position:
Financial instruments accounted for in accordance with the financial instruments categories
defined in Note 3(n)
Employee future benefits defined in Note 3(k)
Provisions defined in Note 3(l)
(c)
Functional and presentation currency

The consolidated financial statements are presented in millions of Canadian dollars, the functional
currency of the corporation.
(d)
Use of estimates and judgment

The preparation of consolidated financial statements in accordance with IFRS requires management to
make estimates and assumptions that affect amounts reported as assets, liabilities, income and expenses.
Areas of significant management estimates are outlined in the following summary and significant
accounting policies included in Note 3:
Accrued revenue for domestic electricity and natural gas deliveries not yet billed at year-end and
allowance for doubtful accounts (Note 3(b))
Useful life estimates for depreciable assets (Notes 3(g), 18 and 20)
Measurement of accrued liabilities (Note 24)
Measurement of other long-term liabilities and underlying estimates of future cash flows (Note 26)
Measurement of employee future benefits and underlying actuarial assumptions (Notes 3(k) and 27)
Measurement of provisions and underlying estimates of future cash flows (Notes 3(l) and 29)
Fair value measurement of financial instruments (Notes 3(n) and 31)
Estimates and underlying assumptions are reviewed on an ongoing basis. Actual amounts could differ
from those estimates, but differences are not expected to be material.
52

Note 3
(a)
Significant accounting policies
Regulatory deferral accounts

In January 2014, the International Accounting Standards Board (IASB) issued an interim standard,
IFRS 14 Regulatory Deferral Accounts, which provides guidance on accounting for the effects of rate
regulation under IFRS. This guidance allows entities that conduct rate-regulated activities to continue to
recognize regulatory deferral accounts. This interim standard is effective for financial reporting periods
beginning on or after January 1, 2016, and is available to first-time adopters only. As early adoption
is permitted, the corporation has elected to adopt IFRS 14 in its first consolidated financial statements
under IFRS. The interim standard is only intended to provide temporary guidance until the IASB
completes its comprehensive project on rate-regulated activities. IFRS 14 remains in force until either
repealed or replaced by permanent guidance on rate-regulated accounting from the IASB.
Regulatory deferral account balances usually represent timing differences between the recognition of
items of income or expenses for regulatory purposes and the recognition of those items for financial
reporting purposes. Regulatory deferral account balances arising from rate-regulated activities are
recognized and measured separately if they do not meet the criteria to be recognized as an asset or
liability in accordance with other standards. The balances recorded as regulatory deferral balances will
be recovered or refunded in future rates, based on approvals by the Public Utilities Board of Manitoba
(PUB). These amounts would otherwise have been included in the determination of net income in the
year they are incurred.
Under rate regulation, the prices charged for the sale of electricity and natural gas within Manitoba
are subject to review and approval by the PUB. The rate-setting process is designed such that rates
charged to electricity and natural gas customers recover costs incurred by Manitoba Hydro in providing
electricity and natural gas service plus a sufficient contribution to retained earnings.
The following regulatory deferral account balances are initially recorded at cost and amortized on a
straight-line basis using the specified periods:
Power Smart programs
10
years*
Site restoration costs
15
years
Deferred taxes 30
years
Acquisition costs
30
years
Regulatory costs
up to 5
years
*The Power Smart regulatory deferral debit balance includes the differences between actual and planned
spending on electric and gas demand side management (DSM) for the 2013 to 2016 fiscal years with a
corresponding regulatory deferral credit balance. The disposition of these balances will be determined
by the PUB at a future regulatory proceeding.
53

The Affordable Energy Fund is amortized to the consolidated statement of income at the same rate
as the obligation is drawn down. The purchased gas variance account (PGVA) is recovered or refunded
over a period determined by the PUB.
The amortization of the loss on disposal of assets, change in depreciation methodologies from average
service life (ASL) to equal life group (ELG), deferred ineligible overhead and the impact of the 2014
depreciation study will be determined by the PUB at a future regulatory proceeding.
(b) Revenue recognition
Domestic electricity and natural gas revenues are recognized upon delivery to the customer and charged
in accordance with rates approved by the PUB. Unbilled revenues are recorded based on an estimated
amount of electricity and natural gas delivered and not yet billed at year-end.
Extraprovincial electricity revenue is recorded upon the delivery of energy or settlement of the financial
transaction.
Consulting, technology and maintenance services and other miscellaneous revenue is recognized when
services are provided or goods are shipped to the customer. Revenue from fixed price contracts is
recognized under the percentage-of-completion method. The percentage of completion is determined
by comparing the costs incurred at the consolidated statement of financial position date to the total
estimated costs, which include costs incurred plus anticipated costs for completing a contract.
Deferred revenue related to customer contributions is recognized over the life of the related asset for
which the contribution was received.
(c)
Cost of gas
Natural gas is recorded at purchased cost upon delivery to gas customers.
(d)
Finance expense and finance income

Finance expense includes interest on short and long-term borrowings and the provincial debt
guarantee fee paid to the Province of Manitoba, foreign exchange gains and losses, accretion expense
on provisions and other long-term liabilities, offset by interest capitalized for those qualifying assets
under construction. All borrowing costs are recognized using the effective interest rate method. Finance
income includes interest earned on loans and advances to external parties and temporary investments.
(e)

Cash and cash equivalents include cash on hand and short-term, highly liquid investments that are
readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.
54

(f) Inventory
Materials and supplies, fuel and natural gas inventories are valued at the lower of average cost and net
realizable value. Replacement cost is used as managements best estimate of the net realizable value for
materials and supplies and fuel inventory.
Materials, supplies, fuel and natural gas are charged to inventory when purchased and not immediately
required for use. These inventories are expensed or capitalized when used. Those materials, supplies and
fuel purchased for immediate use are expensed directly.
(g)

Property, plant and equipment is recorded at cost less accumulated depreciation. Cost includes
expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes the cost of materials, contracted services, direct labour and interest applied at the
weighted average cost of debt outstanding during the period. Interest is allocated to construction until
a capital project becomes operational or a decision is made to abandon, cancel or indefinitely defer
construction. Once the transfer to in-service property, plant and equipment is made, interest allocated
to construction ceases and depreciation and interest charged to operations commences.
Depreciation is calculated on a straight-line remaining life basis using the ELG procedure. The major
components of generating stations are depreciated over the lesser of the remaining life of the major
components or the remaining life of the associated generating station.
Generation
Transmission lines
Substations
Distribution systems
Other
4 125 years
10 85 years
15 65 years
10 75 years
5 100 years
The estimated service lives of the assets are based upon depreciation studies conducted periodically by
the corporation. A depreciation study was last completed in 2015.
The net gain or loss on retirement of these assets is charged to depreciation in the period incurred
and then removed through net movement in regulatory balances to a regulatory debit balance. When
the costs of removing an asset from service are incurred to facilitate the installation of a new asset,
the costs to remove the asset from service are added to the costs of the new asset. When an asset is
retired from service and not replaced with a similar asset, the costs of removing the asset from service
are treated similarly to the net gain or loss on retirement of assets.
A reasonable estimate of the present value of the future cash flows required to retire an asset from
service is recorded when the recognition criteria for a provision (Note 3(l)(i)) are met. An equivalent
55

amount is added to the carrying cost of the related asset and is amortized over the assets remaining
service life. The discount rate used to measure the cash flows reflects current market assessments of
the time value of money and the risks specific to the obligation.
(h) Goodwill
Goodwill represents the amount of the corporations investments in Centra and Winnipeg Hydro over
and above the fair market value of the identified net assets acquired. The goodwill balance is evaluated
annually to determine whether any impairment has occurred.
(i)
Intangible assets
Intangible assets include computer application development costs, land easements and transmission
rights. Intangible assets are recorded at cost less accumulated amortization. The cost of computer
application development includes software, direct charges for labour, materials, contracted services
and interest during development applied at the weighted average cost of debt outstanding during the
period. The corporations intangible assets have finite useful lives and are amortized over their useful
lives on a straight-line basis with the amortization included in depreciation and amortization expense.
The expected useful lives are as follows:

Computer application development

Land easements
Transmission rights
5 - 11 years
75 years
1 - 12 years
Transmission rights are amortized over the contractual period of the right plus a one-term renewal. The
estimated service lives of computer application development and land easements are based upon depreciation
studies conducted periodically by the corporation. A depreciation study was last completed in 2015.
(j)
Impairment of non-financial assets

Non-financial assets subject to impairment testing include goodwill, intangible assets and property, plant
and equipment. The corporation tests goodwill and material intangible assets under construction at least
annually for impairment. Assets subject to depreciation and amortization are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment test is performed by comparing the carrying amount of the asset or cash generating unit
(CGU) to its recoverable amount. The recoverable amount is calculated as the higher of the fair value less
costs to sell and the present value of the future cash flows from an asset or CGU. The corporation has
determined its CGUs to be at the segment level. This is the lowest level for which there are separately
identifiable cash flows as rates for electricity and natural gas revenue are set by the PUB at the segment
level. An impairment would be recognized as a charge against operations in the year of impairment if the
carrying amount exceeds the recoverable amount.
56

(k)

Manitoba Hydro provides future benefits, including pension and other benefits, to both existing and
retired employees.
The costs and obligations of defined benefit pension plans and other benefits are determined by an
independent actuary using the accrued benefit actuarial cost method and reflect managements best
estimate of future compensation increases, service lives and inflation. Pension expense is comprised of
the cost of pension benefits earned during the year and net interest income or expense. Interest income
on plan assets is determined by multiplying the fair value of the plan assets by the discount rate used
to determine the accrued benefit obligation at the start of the annual reporting period. This considers
any changes in the plan assets held during the period as a result of contributions and benefit payments.
Interest expense on the accrued benefit obligation is determined by multiplying the accrued benefit
obligation by the discount rate used at the start of the annual reporting period.
Experience gains or losses on the asset and actuarial gains or losses on the obligation are recognized
in other comprehensive income (OCI) in the period in which they occur. Past service costs, which arise
when a change is made to plan benefits, are recognized immediately in profit or loss.
Other future benefits earned by employees include vacation, vested sick leave, severance and retirement
health plans. Where applicable, the future costs of these benefits are determined by an independent
actuary and reflect managements best estimates.
(l) Provisions
In accordance with International Accounting Standards (IAS) 37 Provisions, Contingent Liabilities and
Contingent Assets, a provision is required to be recognized where there is a present legal or constructive
obligation as a result of a past event that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation, the timing or amount of which are uncertain.
(i)
Asset retirement obligations

Asset retirement obligations are estimated by discounting the expected future cash flows at a
rate that reflects current market assessments of the time value of money and the risks specific
to the obligation. The increase in the provision due to the passage of time is recognized as a
finance expense.
(ii)
Affordable Energy Fund

The Affordable Energy Fund was determined based on Provincial Legislation. The timing of
disbursements is uncertain due to the unpredictability of future customer participation.
57

(m)
Government grants
Government grants are recognized when there is reasonable assurance they will be received and
the corporation will comply with the conditions associated with the grant. Government grants that
compensate the corporation for expenses incurred are recognized in profit or loss in the same period in
which the expenses are recognized. Grants that compensate the corporation for the cost of an asset are
recorded as deferred revenue and recognized in other revenue over the service life of the related asset.
(n)
Financial instruments
All financial instruments are measured at fair value on initial recognition as of the trade date. Transaction
costs are included in the initial carrying amount of financial instruments except for those financial
instruments measured at fair value through profit or loss. Transaction costs directly attributable to
the acquisition of financial instruments classified as fair value through profit or loss are expensed as
incurred. Measurement in subsequent periods depends on the classification of the instrument. Financial
instruments are classified into one of the following categories: loans and receivables, fair value through
profit or loss, available-for-sale, or other financial liabilities.
Financial instruments classified as loans and receivables and other financial liabilities are carried at
amortized cost using the effective interest method of amortization. Available-for-sale financial assets
are subsequently measured at fair value with unrealized gains and losses recorded in OCI until the
instrument is derecognized or impaired. Financial instruments classified as fair value through profit or
loss are subsequently measured at fair value with changes in fair value recognized in the consolidated
statement of income in the period in which they arise.
Financial assets classified as loans and receivables are subject to impairment testing at the end of each
reporting period. Impairment losses are recorded when there is objective evidence that impairment has
occurred due to one or more events such as default or delinquency in interest or principal payments, or
significant financial difficulty experienced by the counterparty. Trade receivables that are not assessed
for impairment individually are assessed for impairment on a collective basis. Objective evidence of
impairment includes the corporations past historical loss rates applied to groups for which the historical
loss rates were observed.
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or it
expires. When an existing financial liability is replaced with substantially different terms or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as derecognition
of the original liability and the recognition of a new liability is recorded at fair value. The differences in
the respective carrying amounts are recognized as gains or losses in net income.
58

(o)
Foreign currency translation

Revenues and expenses resulting from transactions in foreign currencies are translated to Canadian
dollar equivalents at exchange rates approximating those in effect at the transaction date.
Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars at
the exchange rate prevailing at the reporting date. Translation gains and losses are credited or charged
to finance expense in the current period except for long-term debt obligations in hedging relationships
with future export revenues. Translation gains and losses for long-term debt obligations in hedging
relationships with future export revenues are recorded in OCI until such time that the hedged export
revenues are realized, at which time accumulated exchange gains and losses are credited or charged to
finance expense.
(p) Derivatives
The corporation does not engage in derivative trading or speculative activities. All derivative instruments
are carried at fair value on the consolidated statement of financial position with the exception of
those that were entered into for the purpose of physical receipt or delivery in accordance with the
corporations expected normal purchases and sales. Changes in the fair value of derivatives that are not
designated in a hedging relationship and do not qualify for the normal purchase and sale exemption are
recorded in the consolidated statement of income.
(q) Hedges
The corporation has designated cash flow hedges linking financial instruments to specific assets and
forecasted transactions. Long-term cash flow hedges have been established between U.S. long-term
debt balances and future U.S. export revenues as well as between U.S. interest payments on dual
currency bonds and future U.S. export revenues. The corporation documents the relationship between
the hedging instrument and the hedged item and assesses at inception, and on an ongoing basis,
the effectiveness of the hedging relationship.
(r)
Non-controlling interests represent the outstanding ownership interests attributable to third parties
in the corporations limited partnerships. The portion of the equity not owned by the corporation is
reflected as non-controlling interests within the equity section of the consolidated statement of financial
position. The portion of the net income or net loss attributable to the parent and non-controlling
interests is reported on the consolidated statement of income.
59

Note 4
Future accounting pronouncements
The following new standards and amendments are not yet effective for the year ended March 31, 2016, and
have not been applied in preparing these consolidated financial statements. The corporation does not have
any plans to early adopt the new or amended standards and the extent of the impact on adoption of the
following standards is not known at this time:
IFRS 9 Financial Instruments
IFRS 9 Financial Instruments was finalized in July 2014 and replaces IAS 39 Financial Instruments:
Recognition and Measurement. IFRS 9 includes revised guidance for the classification and measurement
of financial assets and liabilities, a new expected credit loss model to measure impairment of financial
assets and significant improvements in hedge accounting. It also carries forward the guidance on
recognition and derecognition of financial instruments from IAS 39. This new standard is effective for
annual periods beginning on or after January 1, 2018, with early adoption permitted.
IFRS 15 Revenue from Contracts with Customers
IFRS 15 Revenue from Contracts with Customers was issued in May 2014 and replaces IAS 18 Revenue
and IFRS Interpretations Committee (IFRIC) 18 Transfers of Assets from Customers. The standard
provides a single five-step model to be applied to all contracts with customers to determine when
to recognize revenue and at what amount. The underlying principle of IFRS 15 is that an entity
recognizes revenue that shows the transfer of goods or services to customers at an amount that the
entity expects to be entitled to in exchange for those goods or services. This new standard is effective
for annual periods beginning on or after January 1, 2018, with early adoption permitted.
IFRS 16 Leases
IFRS 16 Leases was issued in January 2016 and replaces current lease accounting requirements under
IFRS. The standard provides a single lessee accounting model, requiring the recognition of assets and
liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low
value. This new standard is effective for annual periods beginning on or after January 1, 2019. Earlier
application is permitted if IFRS 15 Revenue from Contracts with Customers has also been applied.
Disclosure Initiative
In December 2014, the IASB issued Disclosure Initiative (Amendments to IAS 1 Presentation of Financial
Statements). These amendments improve the existing presentation and disclosure requirements and
encourage entities to apply professional judgment regarding disclosure and presentation in their
financial statements. These amendments are effective for annual periods beginning on or after
January 1, 2016.
60

Note 5
Transition to IFRS
IFRS Exemptions under IFRS 1 First-time Adoption of IFRS

Manitoba Hydro adopted IFRS on April 1, 2015 and applied IFRS 1 for the preparation of these first annual
IFRS consolidated financial statements. As IFRS require comparative financial information, the corporation has
applied IFRS 1 on the transition date of April 1, 2014.
IFRS 1 provides optional and mandatory exemptions to the requirement for full retrospective application of
IFRS. The corporation has applied the following relevant mandatory and optional exemptions in the opening
IFRS consolidated statement of financial position:
IFRS mandatory exemptions:
(a) Significant estimates
IFRS 1 stipulates that estimates made in accordance with IFRS at the date of transition should be
consistent with those estimates under previous generally accepted accounting principles (GAAP).
As such, the estimates made under CGAAP were not revised at the transition date except where
necessary to reflect differences in accounting policies.
(b) Non-controlling interests
IFRS 1 requires that certain components of IFRS 10 Consolidated Financial Statements be applied
prospectively from the IFRS transition date. The foundation of consolidation under IFRS is a control
model whereas CGAAP consolidation is based on a controlling financial interest model. The resulting
difference is that some subsidiaries that were not consolidated under CGAAP may be consolidated
under IFRS. This exemption allows any such subsidiaries to be consolidated prospectively. For Manitoba
Hydro, there are no differences in consolidation as the corporation consolidated all subsidiaries since
inception.
Presentation differences also exist between CGAAP and IFRS 10 for the consolidated statement
of financial position, the consolidated statement of income and the consolidated statement of
comprehensive loss as follows:
Consolidated statement of financial position:
Non-controlling interests are presented as a component of equity separate from the equity
attributable to the owners of the parent on the statement of financial position under IFRS. This
varies from the CGAAP balance sheet presentation where non-controlling interests are presented
outside of liabilities and equity.
61

Consolidated statement of income and statement of comprehensive loss:

Non-controlling interests are presented below net income, indicating the net income attributable
to the non-controlling interests and the net income attributable to the parent. This varies from
the CGAAP presentation of non-controlling interests being a component of net income.
As required under this IFRS 1 exemption, the changes in presentation between CGAAP and IFRS have
been applied prospectively.
IFRS optional exemptions:
(a) Business combinations
Under IFRS 1, entities may elect not to apply the requirements of IFRS 3 Business Combinations
retrospectively for business combinations occurring before the transition date. Manitoba Hydro has
applied this exemption.
(b) Deemed cost
IFRS 1 provides entities with rate-regulated activities the option to use the carrying amount of
property, plant and equipment and intangible asset balances from their previous GAAP as deemed cost
upon transition. Carrying amounts under CGAAP were based on cost. Manitoba Hydro has applied this
exemption.
(c) Decommissioning liabilities included in the cost of property, plant and equipment
IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities requires specified
changes in a decommissioning, restoration or similar liability to be added to or deducted from the cost
of the asset to which it relates. IFRS 1 provides first-time adopters the option not to retroactively
restate these liabilities upon transition to IFRS. Manitoba Hydro has applied this exemption.
(d) Borrowing costs
IFRS 1 provides first-time adopters the option of applying the requirements of IAS 23 Borrowing
Costs prospectively from the transition date or from an earlier date. IAS 23 requires the interest
capitalization rate to be the weighted average of the borrowing costs applicable to the borrowings of
the entity that are outstanding during the period. Manitoba Hydro applied the requirements of IAS 23
effective April 1, 2010.
(e) Transfers of assets from customers
Under IFRS 1, entities have the option to apply the requirements of IFRIC 18 Transfers of Assets from
62

Customers prospectively from the transition date or from an earlier date. Manitoba Hydro applied these
requirements at the transition date. As a result, contributions in aid of construction were reclassified to
deferred revenue and are subsequently recognized in other revenue over the lives of the related assets.
Adjustments to Equity upon Adoption of IFRS
The transition to IFRS generally requires retrospective application of changes in accounting policies
resulting from differences from existing GAAP. The following table summarizes the consolidated comparative
adjustments as at April 1, 2014:
Note
CGAAP as at April 1, 2014
Restatement of employee pensions
Restatement of employee benefits
Total IFRS adjustments
IFRS as at April 1, 2014
(a)
(a)
(b)
Retained
earnings
AOCI
2 716
96
(41)
(32)
(73)
(432)
(432)
2 643
(336)
Restatement of employee pensions

In accordance with IAS 19 Employee Benefits, opening retained earnings recognizes the retrospective
re-measurement of the interest on the pension assets by applying the discount rate used to measure
the pension obligation, in addition to the elimination of the corridor amortization and amortization of
plan amendments. IAS 19 also requires all cumulative actuarial gains and losses to be recognized in the
opening balance of accumulated other comprehensive income (AOCI).
(b)
Restatement of employee benefits

Under CGAAP, only legally vested obligations were recorded whereas under IAS 19, employee service
gives rise to an obligation regardless of whether the benefits are vested or unvested. As a result, upon
transition to IFRS the sick leave vesting and severance obligations required re-measurement. These
adjustments have been reflected in retained earnings.
Under IAS 19, re-measurements for employee benefits can no longer be deferred and amortized.
Deferrals related to other employee future benefits were adjusted to retained earnings on transition
to IFRS.
63

Note 6
Reconciliations of CGAAP to IFRS

As at April 1, 2014
Assets
Current Assets
Prepaid expenses
Inventory

Non-Current Assets
Goodwill
Intangible assets
Regulated assets

Current Liabilities
Other liabilities
Accrued interest
Notes
(i), (ii)
(i)
(iii)
(ii), (iv), (v)
(iii), (iv)
(v)
A, (viii)
Long-Term Debt
Regulated liabilities
Asset purchase obligation
Deferred revenue
Provisions
(iii)
A, (iv), (v),
(vi), (viii), (x)
(vi)
E, (v)
(x)
A, (iv)
Total liabilities
Equity
Retained earnings
Accumulated other comprehensive income (loss)
E
E
64
(iii)
CGAAP
Adjustments Reclassifications
IFRS
142
520
81
743
(42)
47
5
142
478
47
81
748
13 627
13 629
111
107
174
360
517
1 269
15 639
15 639
2
2
(360)
(106)
(466)
(461)
371
(90)
111
107
174
411
803
15 180
371
15 551
408
561
100
1 069
5
5
(24)
79
(7)
48
408
537
84
93
1 122
10 460
10 460
22
615
(13)
(22)
(72)
530
207
381
1 225
12 754
505
10
502
507
(207)
113
17
11
(160)
(112)
618
398
21
1 567
13 149
2 716
96
2 812
73
2 885
15 639
15 639
(73)
(432)
(505)
(505)
2
2
(112)
22
(90)
2 643
(336)
2 307
73
2 380
15 529
22
15 551


As at March 31, 2015
Assets
Current Assets
Prepaid expenses
Inventory

Non-Current Assets
Goodwill
Intangible assets
Regulated assets

Current Liabilities
Other liabilities
Accrued interest
Notes
(i), (ii)
(i)
A, B, C, D, F
C
(iii)
(ii), (iv), (v)
C, F, (iii), (iv)
(v)
A, (viii)
Long-Term Debt
Regulated liabilities
Asset purchase obligation
Deferred revenue
Provisions
Total liabilities
Equity
Retained earnings
(iii)
A, (iv), (v),
(vi), (viii), (x)
(vi)
E, (v)
C, (x)
A, (iv)
E
E
F, (iii)
CGAAP
Adjustments
494
470
99
1 063
(43)
47
4
494
427
47
99
1 067
15 250
(28)
15 222
114
107
186
346
528
1 281
17 594
17 594
(3)
(3)
(31)
58
27
(346)
(64)
(410)
(406)
352
(54)
114
107
183
464
868
17 157
410
17 567
377
560
95
1 032
4
4
(31)
90
1
60
377
529
94
96
1 096
12 303
12 303
22
808
(12)
(22)
(110)
686
199
441
1 470
14 805
634
(1)
11
632
636
(199)
170
19
6
(136)
(76)
804
459
17
1 966
15 365
2 830
(161)
2 669
120
2 789
17 594
17 594
(51)
(559)
(610)
(610)
26
1
27
(76)
22
(54)
2 779
(720)
2 059
120
2 179
17 544
23
17 567
Reclassifications
IFRS
65


Revenues
Domestic
Electric
Gas
Extraprovincial
Other
Expenses
Cost of gas sold
Finance expense
Other expenses
Finance income
CGAAP
Adjustments
Reclassifications
IFRS
1 424
428
400
68
2 320
(1)
2
1
(16)
11
(5)
1 424
427
384
81
2 316
274
527
559
436
125
145
120
31
2 217
(8)
(3)
55
(68)
(5)
46
17
27
10
(16)
(26)
(5)
266
551
614
378
125
129
115
77
(26)
2 229
103
(16)
87
11
-
(11)
38
38
114
11
125
114
114
22
(11)
11
136
(11)
125
Notes
CGAAP
Adjustments
Reclassifications
IFRS
114
11
125
(127)
(127)
(249)
(249)
(8)
(257)
(143)
(127)
(116)
(8)
(384)
(259)
(143)
(143)
(105)
(11)
(116)
(248)
(11)
(259)
Notes
(xi)
C, (vii)
F
F, (ix)
B, C, E
D, F, (vii)
(xi)
F
F
(ix)
Net income before net movement in regulatory balances

Net loss attributable to non-controlling interests
G
F
Net Income
Manitoba Hydro

Net Income
Other Comprehensive Loss
Pension valuation loss
Unrealized foreign exchange losses on debt in
cash flow hedges
Realized foreign exchange gains on debt in
cash flow hedges reclassified to income
Comprehensive Loss
Comprehensive Loss attributable to:
Manitoba Hydro
Non-controlling interest
66

Adjustments
A. Asset retirement obligation
There were several changes to the asset retirement obligation (ARO) as a result of the adoption of
IFRS. The ARO balance was reclassified, revalued and split between current and non-current portions.
As the ARO meets the definition of a provision under IFRS, the long-term portion of this balance was
reclassified from other long-term liabilities to provisions. This resulted in an increase to provisions of
$13 million as at April 1, 2014 and $12 million as at March 31, 2015 and a corresponding decrease
to other long-term liabilities.
IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities requires an ARO to be revalued
for changes in the discount rate used to measure the obligation. This resulted in an increase of $2 million
as at April 1, 2014 and $3 million as at March 31, 2015 to provisions and property, plant and equipment.
The current portion of the ARO was reclassified to other liabilities in the current liabilities section of
the consolidated statement of financial position. This reclassification resulted in an increase to other
liabilities of $5 million as at April 1, 2014 and $4 million as at March 31, 2015 with a corresponding
decrease to provisions.
B. Meter exchanges
Under CGAAP, Manitoba Hydros electric operations capitalized the cost of removing a meter from
service with the costs to install the replacement meter. Manitoba Hydros natural gas operations
(Centra) expensed the cost of removing a meter from service when it was replaced with a new meter.
IFRS 10 Consolidated Financial Statements requires that a parent company prepare consolidated
financial statements using uniform accounting policies for like transactions. As such, upon its transition
to IFRS, Centras meter exchange costs have been capitalized on consolidation. For the year ended
March 31, 2015, the impact of this change is to increase property, plant and equipment by $5 million
with a corresponding decrease to operating and administrative expense.
C. Overhead not eligible for capitalization (ineligible overhead)
IFRS is more explicit than CGAAP with respect to the costs that may be included in the cost of
a capital project. IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets do not permit
the capitalization of overhead and administrative costs that are not directly attributable to a capital
project. Consequently, Manitoba Hydro no longer capitalizes these costs.
In addition, under CGAAP, ineligible overhead recovered from customers was included in contributions
in aid of construction and subsequently recognized over the service life of the related asset. Under IFRS,
the ineligible overhead recovered from customers has been reclassified to other revenue.
67

For the year ended March 31, 2015, these changes had the following impacts on the consolidated
statement of financial position:
Decrease to property, plant and equipment
$55 million
Decrease to intangible assets
$ 3 million
Decrease to regulatory deferral debit balance
$ 2 million
Decrease to deferred revenue
$ 2 million
For the year ended March 31, 2015, these changes had the following impacts on the consolidated
statement of income:
Increase to other revenue
$ 2 million
Increase to operating and administrative expense
$59 million*
*

$21 million of this increase to operating and administrative expense has been deferred as a
regulatory deferral debit balance (Note 6, section F).
D. Depreciation valuation
IFRS is more specific than CGAAP with respect to the level of componentization by which assets can
be grouped for determining depreciation. In order to comply with the componentization requirements
of IAS 16, Manitoba Hydro changed from the ASL method of depreciation to the ELG method. The
ELG method calculates depreciation with consideration of the different service lives for each of the
assets within a component group. In addition to the change to the ELG method, Manitoba Hydro
also eliminated the provision for asset decommissioning costs (negative salvage) that was previously
included in depreciation rates under CGAAP. The provision represented a high level estimate of the
costs to decommission an asset and was utilized to promote intergenerational equity in customer rate
setting. The inclusion of this provision in depreciation rates is not permitted under IFRS. For the year
ended March 31, 2015, these changes had the following impacts:
Decrease to depreciation and amortization for the following:
**

68
Removal of negative salvage value

Depreciation valuation from ASL to ELG
$56 million
($31) million**
Increase to property, plant and equipment
$25 million
This impact to depreciation and amortization expense has been deferred as a regulatory
deferral debit balance (Note 6, section F).

E. Pensions and benefits

Pension adjustment
IAS 19 Employee Benefits requires all cumulative actuarial gains and losses to be recognized in the
opening balance of OCI. Under CGAAP these amounts were presented in loans and other receivables
(previously other long-term assets).
Under CGAAP, the corporation utilized the corridor method of amortization for actuarial gains and
losses for the Manitoba Hydro Plan, Enhanced Hydro Benefit Plan and Centra Gas pension plans. The
corridor approach has been eliminated under IAS 19 requiring immediate recognition of actuarial
gains and losses in OCI in the period in which they occur.
Under IFRS, the expected return on plan assets is replaced by interest income calculated using the
fair value of plan assets with the same discount rate used to measure the pension obligations. Under
CGAAP, market-related values were used to estimate the expected return on plan assets and to apply
experience gains and losses in the corridor calculation. This adjustment is reflected in retained earnings.
Under IAS 19, past service costs arise when an entity introduces a new defined benefit plan or change
to the benefits payable. These improvements are recognized immediately in profit or loss whereas
under CGAAP, these costs were deferred and amortized. The requirements of IAS 19 were applied
retrospectively with the adjustment reflected in retained earnings.
The impacts at April 1, 2014 and March 31, 2015 from this change were:
Impact to consolidated statement of financial position:

Increase to employee future benefits liability
Decrease to accumulated other comprehensive
income
Decrease to retained earnings
March 31, 2015

$592
April 1, 2014
$473

$559
$ 41
$432
$ 41
Impact to consolidated statement of income and consolidated statement of comprehensive loss:

March 31, 2015
April 1, 2014
Decrease to operating and administrative expense
$ 8
Increase to other comprehensive loss
$127
-
69

Benefits adjustment
There are some measurement differences for some of the post-employment benefit liabilities.
Under IAS 19, employee service gives rise to an obligation regardless of whether the benefits are
vested or unvested for the sick leave vesting and severance liabilities whereas under CGAAP, only
legally vested liabilities are recorded. For the retiree health spending and long-term disability liabilities,
actuarial gains and losses resulting from experience adjustments and changes in actuarial assumptions
are deferred and amortized under CGAAP whereas under IFRS, they are expensed as they occur.
The impacts at April 1, 2014 and March 31, 2015 from this change were:
Impact to consolidated statement of financial position:
March 31, 2015
April 1, 2014
$42
$32
$32 $32
Increase to employee future benefits liability

Decrease to retained earnings
Impact to consolidated statement of income:

Increase to operating and administrative expense

March 31, 2015
April 1, 2014
$10
-

F. Regulatory deferral account balances
IFRS 14 Regulatory Deferral Accounts specifies the financial reporting requirements for regulatory
deferral account balances that arise from rate-regulation. This standard requires the consolidated
statement of income above net movement in regulatory balances to be presented in a manner that
does not include the impacts of rate-regulation. As a result, additions to regulatory deferral balances
have been expensed in the line items above net movement in regulatory balances and amortization
has been removed. Consequently, the additions are ultimately deferred and amortization is recognized
through net movement in regulatory balances. This presentation is intended to isolate the movement
of regulatory deferral accounts to allow comparability with those entities not applying IFRS 14.
The following adjustments were made to the consolidated statement of income and consolidated
statement of financial position:
Additions
Additions to regulatory deferral balances relating to carrying costs have been presented in finance
expense. Finance expense also includes the derecognition of the deferred accretion on the perpetual
obligation. These impacts resulted in a decrease to finance expense under IFRS of $5 million for the
year ended March 31, 2015.
70

Additions to regulatory deferral debit balances relating to deferred ineligible overhead resulted in an
increase to the regulatory deferral debit balance of $21 million as at March 31, 2015.
Additions to regulatory deferral debit balances relating to the change in depreciation method resulted
in an increase to the regulatory deferral debit balance of $31 million as at March 31, 2015.
Additions to regulatory deferral debit balances relating to the loss on disposal of assets originally
recorded in property, plant and equipment resulted in a decrease to property, plant and equipment,
and increases to depreciation and amortization and regulatory deferral debit balances of $9 million as
at and for the year ended March 31, 2015.
Additions to Power Smart programs, site restoration and regulatory costs have been presented
in other expenses resulting in an increase to other expenses of $45 million for the year ended
March 31, 2015.
Additions to regulatory deferral credit balances relating to the impact of the 2014 depreciation study
have been presented in depreciation and amortization resulting in a decrease in depreciation and
amortization and an increase in regulatory deferral credit balances of $1 million as at and for the
year ended March 31, 2015.
Amortization
Amortization of regulatory deferral balances have been removed from depreciation and amortization
under IFRS resulting in a decrease for the year ended March 31, 2015 of $51 million.
Amortization of deferred taxes has been removed from capital and other taxes under IFRS resulting
in a decrease of $4 million for the year ended March 31, 2015.
Recovery or reversal of the PGVA
Cost of gas sold under CGAAP was calculated based on rates approved by the PUB. IFRS 14
requires the regulatory impacts on cost of gas sold to be removed to reflect actual commodity costs.
The March 31, 2015 impact of removing regulatory impacts from cost of gas sold is a reduction in
cost of gas sold of $8 million. Carrying costs have been presented in finance expense resulting in an
increase to finance expense under IFRS of $1 million for the year ended March 31, 2015.
71

Net movement in regulatory deferral balances was impacted by these required changes for the
year ended March 31, 2015 as follows:
Additions
Finance expense
Operating and administrative expenses
Depreciation and amortization expense
Other expenses
Amortization
Recovery or reversal of the PGVA
Cost of gas sold
Finance expense
Net impact to net movement in regulatory deferral balances
(5)
21
39
45
100
(51)
(4)
(55)
(8)
1
(7)
38
G. Net loss attributable to non-controlling interest

IAS 1 requires the parents consolidated statement of income to include 100% of the amounts relating
to the subsidiaries under the parents control. A separate table is presented to allocate net income
between Manitoba Hydro and non-controlling interests. This presentation difference results in the
removal of the net loss attributable to non-controlling interests on the consolidated statement of
income.
Reclassifications
i. Prepaid expenses
Under CGAAP, prepaid expenses were included in accounts receivable and accrued revenue. Under
IFRS, prepaid expenses are presented separately. The impact as at April 1, 2014 and March 31, 2015
was a decrease to accounts receivable and accrued revenue of $47 million and $47 million, respectively,
and an increase to prepaid expenses of $47 million and $47 million, respectively.
72

ii. Assets held for sale

IAS 1 requires that the statement of financial position separately presents the total of assets classified
as held for sale if material. Amounts previously included in loans and other receivables under CGAAP
have been reclassified resulting in a reduction to loans and other receivables of $5 million and
$4 million as at April 1, 2014 and March 31, 2015, respectively. As these assets held for sale are not
significantly material, they have been classified as a current asset in accounts receivable and accrued
revenue, resulting in an increase of $5 million and $4 million as at April 1, 2014 and March 31, 2015,
respectively.
iii. Presentation of regulatory deferral balances
IFRS 14 requires separate disclosure in the statement of financial position for the total of all regulatory
deferral debit balances and the total of all regulatory deferral credit balances. As such, amounts
presented as regulated assets and regulated liabilities under CGAAP have been reclassified to regulatory
deferral debit and regulatory deferral credit balances respectively on the consolidated statement of
financial position. This resulted in decreases in the regulated assets balance of $360 million and
$346 million as at April 1, 2014 and March 31, 2015 respectively, with corresponding increases to
the regulatory deferral debit balance. Regulated liabilities decreased by $22 million and $22 million
as at April 1, 2014 and March 31, 2015 respectively with a corresponding increase to the regulatory
deferral credit balance.
iv. Classification of regulatory deferral balances
IFRS 14 requires that an item that would not be recognized as an asset or a liability in accordance with
another Standard, but that qualifies for deferral because it is included, or is expected to be included,
by the regulator in establishing the rates that can be charged to customers to be presented as a
regulatory deferral account balance.

Under CGAAP, the Affordable Energy Fund had an asset balance included in other long-term assets
and a liability balance included in other long-term liabilities.
The asset balance was reclassified under IFRS to regulatory deferral debit balances, resulting in
a decrease to loans and other receivables of $11 million and $6 million as at April 1, 2014 and
March 31, 2015, respectively.
The liability balance was reclassified under IFRS to provisions as it meets the definition of a provision
outlined in IAS 37. The impact as at April 1, 2014 and March 31, 2015 was a decrease to other
long-term liabilities of $11 million and $6 million, respectively, with a corresponding increase to provisions.
73

v. Employee future benefits

In advance of the IFRS opening balance sheet adjustments discussed in E above, the following
reclassifications were made:
The accrued benefit asset was reclassified to employee future benefits. The impact as at April 1, 2014
and March 31, 2015 was a decrease to loans and other receivables (previously other long-term assets)
of $90 million and $54 million respectively, and an increase to the employee future benefits liability
in the same amounts.
Under CGAAP, the accrued benefit liability was included in other long-term liabilities. As the total
employee future benefit liability increased significantly with the adjustments to transition to IFRS, this
balance was removed from other long-term liabilities and reflected in its own line. This reclassification
resulted in a decrease to other long-term liabilities of $188 million as at April 1, 2014 and $211 million as
at March 31, 2015, with corresponding increases to the employee future benefit liability.
Under CGAAP, the workers compensation reserve was included in accounts payable and accrued
liabilities. As the nature of this item is similar to accrued benefits, it has been reclassified to the
employee future benefit liability under IFRS. This reclassification resulted in a decrease to accounts
payable and accrued liabilities of $14 million as at April 1, 2014 and $13 million as at March 31, 2015,
with a corresponding increase to the employee future benefit liability.
vi. Perpetual obligation
For consistency with other liabilities of a similar nature, the long-term portion of the perpetual
obligation to the City of Winnipeg has been reclassified from its own line item in CGAAP to other
long-term liabilities. This reclassification resulted in an increase to other long-term liabilities of
$207 million as at April 1, 2014 and $199 million as at March 31, 2015 with corresponding decreases
to the asset purchase obligation line item under CGAAP.
vii. Deferred revenue
Under IFRIC 18, contributions in aid of construction are initially recorded as deferred revenue and
subsequently recognized in other revenue over the life of the related asset. Under CGAAP, amortization
of contributions was recognized in depreciation and amortization. This reclassification resulted in an
increase in other revenue of $10 million for the year ended March 31, 2015 with a corresponding
increase to depreciation and amortization.
74

viii. Classification of liabilities

Under CGAAP, the obligations related to refundable contributions, mitigation and major development
were classified as long-term liabilities. Under IFRS, the current portion has been reclassified to
other liabilities in the current liabilities section of the consolidated statement of financial position.
This reclassification resulted in an increase to other liabilities of $61 million as at April 1, 2014 and
$71 million as at March 31, 2015, with a corresponding decrease to other long-term liabilities.
ix. Finance expense
IAS 1 requires material items of income or expenses to be separately disclosed. Due to materiality,
finance income and expense have been presented separately. This reclassification resulted in an
increase in finance expense and a corresponding increase in finance income at March 31, 2015 of
$26 million.
x. Reclassification of customer contributions
Refundable contributions expected to be non-refundable have been reclassified to deferred revenue
to be consistent with the presentation of non-refundable contributions. This reclassification resulted in
an increase in deferred revenue of $15 million as at April 1, 2014 and $17 million as at March 31, 2015,
with a corresponding decrease to other long-term liabilities.
xi. Arbitrage opportunities between wholesale energy markets
Arbitrage activities are presented in extraprovincial revenue to better reflect the substance of the
transaction. This reclassification resulted in decreases in fuel and power purchased and extraprovincial
revenue of $15 million at March 31, 2015.
The following table provides the impact on the consolidated statement of cash flows:
Cash provided by operating activites
CGAAP
Effect
of transition
IFRS
651
14
665
(1 973)
100
(1 873)
1 674
(114)
1 560
75

The changes in classification of cash flows under IFRS are primarily due to:
the reclassification of sinking fund investment purchases of $114 million from investing to financing
activities. Manitoba Hydro is legislated under The Manitoba Hydro Act to make sinking fund payments
to the Province of Manitoba. Sinking fund withdrawals are applied towards the repayment of advances
made to, and moneys borrowed by, the corporation, and
the reclassification of adjustments relating to regulatory balances within operating activities and
investing activities related to ineligible overhead, change in depreciation method from ASL to ELG,
meter exchanges and loss on disposal of assets.
Note 7
Extraprovincial revenue
Dependable sales
Opportunity sales
Other
2016
2015
206
197
12
415
183
193
8
384
Dependable sales are sourced from Manitoba Hydros hydraulic energy available during lowest water
conditions and typically with a duration of greater than six months. Opportunity sales are based on excess
energy, are generally over shorter periods and are transacted primarily in markets operated by an independent
system operator such as the Midcontinent Independent System Operator (MISO).
The majority of extraprovincial revenue is from sales to the U.S. The average effective exchange rate for the
year was $1.00 U.S. = $1.30 Canadian (2015 - $1.00 U.S. = $1.13 Canadian).
Note 8
Other revenue
Consulting, technology and maintenance services

Customer contributions
Miscellaneous revenue
2016
2015
57
15
19
91
49
16
16
81
Consulting, technology and maintenance services are comprised of professional consulting, operations,
maintenance and project management services provided to energy sectors world-wide.
76

Customer contributions are the recognition of deferred revenue related to contributions in aid of construction
(Note 28) and the recovery of period costs from customers.
Note 9
Finance expense
Interest on debt
Provincial debt guarantee fee
Accretion
Interest capitalized
Foreign exchange gain
Other
2016
2015
654
122
33
(177)
(12)
620
581
109
30
(145)
(17)
(7)
551
The Provincial debt guarantee fee during the year was 1.00% of the corporations total outstanding
debt guaranteed by the Province of Manitoba (2015 - 1.00%). Interest was capitalized for the year at
5.03% (2015 5.35%).
Note 10
Salaries and benefits

External services
Materials, motor vehicles and supplies
Other
2016
2015
461
99
35
19
614
463
99
34
18
614
Additional salaries and benefits are included in other expenses (Note 14) in the amount of
$16 million (2015 - $13 million).
77

Note 11
Depreciation of property, plant and equipment (Note 18)

Amortization of intangible assets (Note 20)
Loss on disposal of property, plant and equipment
Note 12
366
22
6
394
349
20
9
378
2016
2015
63
43
8
3
117
70
34
10
15
129
2016
2015
73
37
13
123
65
37
13
115
2016
2015
64
38
12
114
41
29
7
77
Corporate capital tax

Property tax and grants in lieu of tax
Payroll tax
Note 14
2015
Wind purchases
Transmission charges
Thermal fuel purchases
Power purchases
Note 13
2016
Other expenses
Power Smart expenses

Consulting, technology and maintenance expenses
Miscellaneous
Of the total other expenses, $72 million (2015 - $45 million) are subsequently deferred in regulatory deferral
balances through net movement in regulatory balances (Note 22).
78

Note 15
Temporary investments
Cash
Restricted cash
March 31, 2016
March 31, 2015
April 1, 2014
820
133
3
956
416
71
7
494
115
23
4
142
Temporary investments are comprised of cash invested with the Province of Manitoba and have a maturity
of less than 30 days. Restricted cash is comprised of deposits held for letters of guarantees for customer
contracts, callable at any time.
Note 16
Trade accounts receivable

Accrued revenue
Current portion of loans and other receivables
(Note 21)
Other receivables
Taxes receivable
Allowance for doubtful accounts
Note 17
March 31, 2016
March 31, 2015
April 1, 2014
241
79
282
83
304
112
22
22
18
(10)
372
33
21
17
(9)
427
32
28
11
(9)
478
March 31, 2016
March 31, 2015
April 1, 2014
66
32
19
117
64
17
18
99
60
21
81
Inventory
Materials and supplies

Natural gas
Fuel
Inventory recognized as an expense during the year was $39 million (2015 - $69 million). The write-down of
inventory during 2016 was nil (2015 - nil). No reversals of write-downs occurred during the year (2015 - nil).
79

Note 18

Generation
Transmission
lines
Substations
Distribution
systems
Other
Construction
in progress
Total
5 138
717
1 648
2 347
836
2 943
13 629
454
11
102
189
61
1 144
1 961
Cost or deemed cost

Balance, April 1, 2014
Additions
Disposals and/or retirements
(5)
(1)
(7)
(19)
(7)
(39)
Assets placed in service*
239
10
444
88
27
(808)
Transfers to (from) PP&E
(1)
Balance, March 31, 2015
5 827
737
2 187
2 605
917
3 278
15 551
135
13
82
196
47
1 889
2 362
(10)
(4)
(14)
(4)
(32)
154
12
105
37
22
(330)
Additions
Assets placed in service*
Transfers to (from) PP&E
(3)
6 106
763
2 372
2 824
979
4 837
17 881
Depreciation expense
123
13
79
79
55
349
(4)
(4)
(8)
(4)
(20)
119
13
75
71
51
329
Depreciation expense
128
13
85
84
56
366
(8)
(5)
(7)
(2)
(22)
239
26
155
148
105
673
5 138
717
1 648
2 347
836
2 943
13 629
5 708
724
2 112
2 534
866
3 278
15 222
5 867
737
2 217
2 676
874
4 837
17 208

Accumulated depreciation

Net book value
*Represents projects that were in Construction in progress at the beginning of the year.
At April 1, 2014, the corporation applied the deemed cost exemption that is available under IFRS 1.
This exemption allows rate-regulated entities that are first-time adopters of IFRS the option to use the
carrying amount of property, plant and equipment from their previous GAAP as deemed cost upon transition.
The application of this exemption to these balances resulted in an opening accumulated depreciation balance
of zero for property, plant and equipment as at April 1, 2014.
Included in additions is interest capitalized during construction of $174 million (2015 - $143 million).
80

Note 19
Manitoba Hydro is legislated under The Manitoba Hydro Act to make annual sinking fund payments to the
Province of Manitoba of not less than 1% of the principal amount of the outstanding debt on the preceding
March 31 and 4% of the balance in the sinking fund at such date. Payments to the sinking fund during the year
were $132 million (2015 - $114 million). Interest earned on sinking fund investments is recognized in finance
expense.
Canadian investments
U.S. investments
March 31, 2016
March 31, 2015
April 1, 2014
114
114
111
111
Canadian investments have a weighted average term to maturity of 0 days (2015 - 1 day) and an effective
yield to maturity of 0.00% (2015 - 0.75%).
81

Note 20
Intangible assets
Computer application
development
Land
easements
Transmission
rights
Under
development
Total
80
57
32
174
Additions
11
31
Cost or deemed cost
Assets placed into service*

Additions
Retirements
21
(27)
112
71
10
12
205
13
15
35
(2)
(2)
Assets placed into service*
(6)
120
87
10
21
238
19
23
Accumulated amortization
Amortization
Retirements
(1)
(1)
18
22
Amortization
20
23
Retirements
(1)
(1)
37
44
Net book value

80
57
32
174
94
70
12
183
83
85
21
194
*Represents projects that were in Under development at the beginning of the year.
The corporation applied the deemed cost exemption available under IFRS 1 as at April 1, 2014 which allows
first-time adopters of IFRS subject to rate regulation the option to use the carrying amount of intangible
asset balances from their previous GAAP as deemed cost upon transition. Applying this exemption resulted in
an opening accumulated amortization balance of zero for intangible assets as at April 1, 2014.
Computer application development is a combination of internally developed and externally acquired
intangible assets.
82

Note 21
Loan to Wuskwatim investment entity (Note 30)

Contract receivables and other
Loans to Keeyask investment entities (Note 30)
Loan to St. Joseph Windfarm Inc.
Less: current portion (Note 16)
March 31, 2016
March 31, 2015
April 1, 2014
128
104
90
322
(22)
300
116
106
57
218
497
(33)
464
112
104
227
443
(32)
411
The St. Joseph wind farm is owned by Pattern Energy and operated by St. Joseph Windfarm Inc. Financing for
the wind farm was provided partly by Manitoba Hydro. In accordance with the loan agreement, Manitoba Hydro
provided advances totaling $250 million, which were fully repaid in the current year.
Accrued interest related to loans receivable is included in the loan balances above and is recognized in
finance income.
83

Note 22
Regulatory deferral balances

March 31, 2015
Balances arising
in the year
Recovery /
reversal
March 31, 2016
Remaining
recovery /
reversal period
(years)
Regulatory deferral debit balances

Electric
184
81
(33)
232
1 - 10
Site restoration
31
(3)
31
1 - 15
Change in depreciation method
29
31
60
Deferred ineligible overhead
20
20
40
Acquisition costs
Power Smart programs1
11
(1)
10
15 - 18
(2)
**
Loss on disposal of assets
Regulatory costs
(1)
1-5
55
10
(8)
57
1 - 10
PGVA
32
181
(213)
***
Deferred taxes
25
(4)
23
1 - 30
Site restoration
1 - 15
Regulatory costs
(1)
1-5
410
342
(266)
486
16
27
43
DSM deferral
PGVA
***
Impact of 2014 depreciation study
23
28
52
314
(267)
47
Gas
Regulatory deferral credit balances

Electric
DSM deferral
Gas

1
84
Included in Power Smart programs is the difference between actual and planned expenditures for electric and gas DSM programs.
The amortization periods for these accounts will be determined by the PUB as part of a future regulatory proceeding.
**
The Affordable Energy Fund is amortized to the consolidated statement of income at the same rate as the provision
(Note 29) is drawn down.
***
The PGVA is recovered or refunded in future rates.

April 1, 2014
Balances arising
in the year
Recovery /
reversal
March 31, 2015
Remaining
recovery /
reversal period
(years)
Regulatory deferral debit balances

Electric
Site restoration
184
32
(32)
184
1 - 10
33
(4)
31
1 - 15
29
29
20
20
Acquisition costs
19
(7)
(1)
11
15 - 18
11
(5)
**
Regulatory costs
1-5
Gas
54
(8)
55
1 - 10
PGVA
39
266
(273)
32
***
Deferred taxes
27
(4)
25
1 - 30
Site restoration
1 - 15
Regulatory costs
(1)
1-5
*
371
367
(328)
410
16
16
Regulatory deferral credit balances

Electric
DSM deferral
Gas
DSM deferral
Impact of 2014 depreciation study
22
23
366
(328)
38

1
Included in Power Smart programs is the difference between actual and planned expenditures for electric and gas DSM programs.
The amortization periods for these accounts will be determined by the PUB as part of a future regulatory proceeding.
**
The Affordable Energy Fund is amortized to the consolidated statement of income at the same rate as the provision
(Note 29) is drawn down.
***
The PGVA is recovered or refunded in future rates.
85

The balances arising in the year consist of additions to regulatory deferral balances. The recovery/reversal
consists of amounts recovered from customers through the amortization of existing regulatory balances or
rate riders. The net impact of these transactions results in the net movement in regulatory deferral balances
on the consolidated statement of income.
Balances arising in the year include $2 million (2015 - $3 million) for carrying costs on deferred taxes, the
Affordable Energy Fund and the PGVA.
The regulatory deferral debit balances of the corporation consist of the following:
Power Smart program expenditures are incurred for energy conservation programs to encourage
residential, commercial and industrial customers to use energy more efficiently.
Site restoration expenditures are incurred for the remediation of contaminated corporate facilities and
diesel generating sites.
Change in depreciation method represents the cumulative annual difference in depreciation expense
between the ASL method of depreciation as applied by Manitoba Hydro prior to its transition to IFRS and
the ELG method as applied by Manitoba Hydro under IFRS.
Deferred ineligible overhead is the cumulative annual difference in overhead capitalized for financial
reporting purposes under IFRS and overhead capitalized for rate setting purposes.
Acquisition costs relate to costs associated with the acquisition of Centra and Minell (July 1999) and
Winnipeg Hydro (September 2002).
The Affordable Energy Fund relates to future DSM expenditures in connection with
The Winter Heating Cost Control Act. The intent of the Affordable Energy Fund is to provide funding for
projects that would not otherwise be funded by Power Smart programs.
Loss on disposal of assets is the net asset retirement losses for those assets retired prior to or subsequent
to reaching their expected service life as determined under the ELG method of depreciation.
Regulatory costs are those incurred as a result of electric and gas regulatory hearings.
Deferred taxes are the taxes paid by Centra (July 1999) as a result of its change to non-taxable status
upon acquisition by Manitoba Hydro.
86

The regulatory deferral credit balances of the corporation consist of the following:
Purchased gas variance accounts are maintained to recover/refund differences between the actual
cost of gas and the cost of gas incorporated into rates charged to customers as approved by the PUB.
Purchased gas variance accounts are reflected as a regulatory debit or credit depending if the amounts
represent a recovery from or a refund to the customers, respectively.
Impact of 2014 depreciation study represents the cumulative unamortized difference in depreciation
between the ASL method based on the 2010 depreciation study and the ASL method based on the 2014
depreciation study. The PUB requires the use of 2010 ASL depreciation rates for Centra for rate setting
purposes pending review at the next gas regulatory proceeding.
DSM deferral - In Orders 43/13 and 85/13, the PUB directed that the differences between actual and
planned spending on electric and gas Power Smart programs for the 2012-13 and 2013-14 fiscal years
be recognized as a liability. In Order 73/15, the PUB further directed that the difference in fiscal 2014-15
and 2015-16 spending be added to this deferral. The cumulative differences have been recorded as a
regulatory deferral account credit balance with an offsetting balance recorded as a regulatory deferral debit
balance. The disposition of these balances will be determined by the PUB at a future regulatory proceeding.
87

Note 23
Long-term debt
Advances from
the Province
Manitoba
HydroBonds
10 683
169

Issues
Manitoba
Hydro-Electric
Board Bonds
Other*
Total
158
(142)
10 868
2 127
83
2 210
Maturities
(561)
(93)
(654)
Foreign exchange adjustments
236
18
254
(1)
12 485
76
157
(38)
12 680
2 208
(43)
2 165
(300)
(50)
(12)
(362)
44
(2)
42
Amortization of net premiums and

transaction costs
Issues
Maturities
Foreign exchange adjustments
Amortization of net premiums and
transaction costs
Less: current portion
14 437
26
145
(81)
14 527
(301)
(25)
(326)
14 136
145
(81)
14 201
*Other includes adjustments to carrying value of dual currency bonds, transaction costs and debt discounts
and premiums.
During the year, the corporation arranged long-term financing of $2 165 million (2015 - $2 210 million).
The current year financing was in the form of provincial advances with the majority at fixed interest rates.
Included in the current portion of long-term debt are $301 million (2015 - $312 million) of debt maturities and
$25 million (2015 - $65 million) of floating-rate Manitoba HydroBonds with maturity dates in 2016 and 2018.
Floating rate Manitoba HydroBonds are redeemable at the option of the holder.
Long-term debt is guaranteed by the Province of Manitoba, with the exception of Manitoba Hydro-Electric
Board Bonds in the amount of $65 million (2015 - $65 million) issued for mitigation projects.
88

Debt principal amounts (excluding adjustments to the carrying value of dual currency bonds, transaction
costs, debt discounts and premiums) and related yields are summarized by fiscal years of maturity in the
following table:
Canadian
Cdn. yields
U.S.
U.S. yields
2016 Total
2015 Total
2017
326
3.5%
326
311
2018
331
6.7%
331
331
2019
936
6.6%
60
10.4%
996
987
2020
150
4.2%
195
8.8%
345
340
2021
975
3.1%
324
9.6%
1 299
892
2 718
4.5%
579
9.4%
3 297
2 861
2022-2026
1 857
3.7%
1 038
6.9%
2 895
2 476
2027-2031
1 020
8.4%
1 020
870
2032-2036
325
5.1%
325
325
2037-2041
1 885
4.7%
1 885
1 885
2042-2046
2 300
3.9%
2 300
2 300
2047-2064
2 886
3.6%
2 886
1 624
12 991
4.2%
1 617
7.6%
14 608
12 341
Years of maturity
Included in the above Canadian maturity amounts are six dual currency bonds with the principal amount
repayable in Canadian currency and interest payments denominated in U.S. currency. Five dual currency
bonds mature in the 2018-19 fiscal year in the amount of $430 million Canadian while the sixth
matures in the 2025-26 fiscal year in the amount of $130 million Canadian. U.S. debt is translated into
Canadian dollars at the exchange rate prevailing at the consolidated statement of financial position date,
$1.00 U.S. = $1.30 Canadian (2015 - $1.00 U.S. = $1.27 Canadian).
89

Note 24
Trade and other payables

Employee payroll and benefit accruals
Taxes payable
March 31, 2016
March 31, 2015
April 1, 2014
602
77
33
11
723
416
71
32
10
529
427
67
33
10
537
Included in accounts payable and accrued liabilities are accruals based on an estimated amount of services
completed or goods and materials received but not invoiced.
Note 25
Other liabilities
Current portion of other long-term liabilities

(Note 26)
Current portion of deferred revenue (Note 28)
Current portion of provisions (Note 29)
March 31, 2016
March 31, 2015
April 1, 2014
85
2
1
88
87
3
4
94
78
1
5
84
The current portion of other long-term liabilities is comprised of the current portion of mitigation liability of
$38 million (2015 - $32 million), major development liability of $26 million (2015 - $35 million), perpetual
obligation to the City of Winnipeg for the acquisition of Winnipeg Hydro of $16 million (2015 - $16 million)
and refundable advances from customers of $5 million (2015 - $4 million).
The current portion of provisions represents the asset retirement obligation for the removal and
disposal of polychlorinated biphenyl (PCB) contaminated fluid in equipment bushings at transmission
and distribution stations. Prior year current portion of provisions related to the decommissioning of the
Pointe du Bois Generating Station spillway, which was completed in the current year.
The current portion of deferred revenue represents advance payments from customers for software
maintenance and international consulting work.
90

Note 26
Mitigation liability
Major development liability
Perpetual obligation
Refundable advances from customers
Other
March 31, 2016
March 31, 2015
April 1, 2014
238
219
215
80
3
755
(85)
670
254
218
215
82
4
773
(87)
686
229
67
223
87
2
608
(78)
530
Mitigation
Manitoba Hydros mitigation program addresses past, present and ongoing adverse effects of historical
hydro-electric development. The mitigation program, established in the late 1970s to address project impacts
through alleviation of adverse effects, remedial works and residual compensation, grew out of the experience
of planning and development of the Lake Winnipeg Regulation and Churchill River Diversion Projects.
The Northern Flood Agreement, signed December 16, 1977, created a process that addressed ongoing
mitigation and compensation for adverse effects of hydro-electric development in five signatory First Nation
communities. The mitigation program was expanded to address impacts arising from all past hydro-electric
developments (prior to the Wuskwatim generating station), particularly for Indigenous people residing or
engaged in resource harvesting in the project areas, and it is essential for operating and future development
purposes.
Expenditures recorded or settlements reached to mitigate the impacts of historical hydro-electric
development amounted to $31 million during the year (2015 - $56 million). In recognition of future mitigation
payments, the corporation has recorded a liability of $238 million (2015 - $254 million). To March 31, 2016,
$1 088 million (2015 - $1 057 million) has been recorded to mitigate and compensate for all project-related
impacts. These expenditures are included in the costs of the associated projects and amortized over the
respective remaining lives. There are other mitigation issues, the outcomes of which are not determinable at
this time.
Included in mitigation liabilities are obligations assumed on behalf of the Province of Manitoba with respect
to certain northern development projects. The corporation has assumed obligations totaling $146 million
for which water power rental charges were fixed until March 31, 2001. The obligation outstanding as at
March 31, 2016 totaled $9 million (2015 - $11 million).
The discount rates used to determine the present value of mitigation obligations range from 4.15% to 8.50%.
91

Major development
Beginning with the development of the Wuskwatim generating station, project-related adverse effects are
identified and addressed during project planning (including the environmental assessment process), which is
done in advance of project construction. As such, mitigation measures are built into project design where
possible. The costs for these mitigation measures, as well as any residual compensation requirements, are
therefore accounted for in the capital cost estimates for each individual project.
Programs and adverse effects agreements have been negotiated to mitigate and compensate for all anticipated
project-related impacts for major new generation and transmission development projects including Wuskwatim,
Keeyask and Bipole III. The corporation has recorded a liability of $219 million (2015 - $218 million) to reflect
these agreements. These expenditures are included in the costs of the associated projects and amortized over
the life of the assets.
The discount rates used to determine the present value of the major development obligation range from
4.50% to 5.05%.
Effective September 3, 2002, the corporation acquired the net assets of Winnipeg Hydro from the City of
Winnipeg. The obligation represents the net present value of payments to the City of Winnipeg of
$16 million per annum in perpetuity.
The discount rate used to determine the present value of the perpetual obligation was 7.45%.
Note 27
Net pension liability

Other employee future benefits liability
March 31, 2016
March 31, 2015
April 1, 2014
588
271
859
538
266
804
383
235
618
Pension plans
Manitoba Hydro and its employees are participating members of the Civil Service Superannuation Plan
(the Plan) established under The Civil Service Superannuation Act (CSSA). Manitoba Hydro employees are
eligible for pension benefits based on years of service and on the average earnings of the five best years. As a
non-matching employer, the provisions of the CSSA require the corporation to contribute approximately 50%
of the pension disbursements made to retired employees. Manitoba Hydro provides its portion of pension
benefits through a separately administered fund, the Manitoba Hydro Pension Fund (MHPF).
92

The employee and employer contribution rates have been increasing since 2012 with the latest increase of
0.50% occurring in January 2015. These increased contributions were necessary to fund the pension benefits
in the future and ensure the ongoing financial health of the Plan.
Manitoba Hydro employees with pensionable service after June 1, 2006 are eligible for an additional pension
benefit under the Enhanced Hydro Benefit Plan (EHBP). The EHBP improves the pension formula used
to calculate pension benefits. Manitoba Hydro funds the enhanced pension benefit through contributions
based on 0.50% of pensionable earnings to a separate trust account that is managed by the Civil Service
Superannuation Board (CSSB). The EHBP funds are co-mingled with the Civil Service Superannuation Fund
(CSSF) assets for investment purposes.
The former employees of Centra are entitled to pension benefits earned under the Centra curtailed pension
plans. The Centra curtailed pension plans are Registered Pension Trusts as defined in the Income Tax Act (Canada).
The Master Trust is made up of three individual plans including the Centra Gas Manitoba Inc. Pension Plan
for Salaried Employees, the Centra Gas Manitoba Inc. Union Employees Pension Plan and the Centra Gas
Manitoba Inc. (Rural) Local 681 Pension Plan. Centra is required to make special payments to the plans at
amounts considered necessary to ensure that the benefits will be fully provided for at retirement as determined
in the actuarial valuation dated December 31, 2014. The plans are registered with the Pension Commission
of Manitoba and subject to the rules and regulations of The Pension Benefits Act of Manitoba. The Master Trust
assets are held in trust with State Street Trust Company of Canada. The CSSB acts as the investment manager.
MHUS employees are eligible for pension benefits under the Plan. As a matching employer under the CSSA,
MHUS is required to match employee contributions at a prescribed rate. MHUS pension expense is recognized
at the time contributions are made. Manitoba Hydro does not carry a pension asset or obligation on its
consolidated financial statements related to MHUS.
The former employees of Winnipeg Hydro continue to earn benefits under the Winnipeg Civic Employee
Benefits Program (WCEBP), which upon the acquisition of Winnipeg Hydro, Manitoba Hydro became a
participating employer. The WCEBP is a defined benefit plan that provides pension benefits based on years
of service and on the average earnings of the five best years. Manitoba Hydro does not carry a pension
asset or obligation on its consolidated statements related to the former employees of Winnipeg Hydro.
The WCEBP is governed by an independent board of trustees and a trust agreement that limits Manitoba
Hydros contribution rates. The structure of the trust agreement also limits Manitoba Hydros exposure to
future unfunded liabilities. Contributions to the plan are accounted for similar to a defined contribution plan.
MHI sponsors a defined contribution group registered retirement plan. MHI matches 100% of the employee
contributions at prescribed contribution rates. The cost of the pension benefits is charged to pension expense
as services are rendered. Manitoba Hydro does not carry a pension asset or obligation on its consolidated
financial statements for the MHI defined contribution plan.
93

An independent actuary calculates the liability for pension expense purposes as at December 31 each year
with the most recent actuarial valuations being completed as at December 31, 2015. The next actuarial
valuations for all plans will occur as at December 2016.
These valuations incorporate managements assumptions and take into consideration the long-term nature
of the pension plans. The actuary selects the demographic assumptions. The corporations management
in consultation with the actuary determines the economic assumptions such as discount rate. The accrued
benefit actuarial cost method with salary projection is used to determine the pension benefit obligation and
current service cost.
The following table presents information pertaining to the Manitoba Hydro Plan, the EHBP and the Centra
curtailed plans that are recognized in the consolidated financial statements:
Manitoba Hydro Plan
Centra curtailed
pension plans
EHBP
Total
2016
2015
2016
2015
2016
2015
2016
2015
Plan assets at fair value

974
883
21
17
126
115
1 121
1 015
Return (loss) on assets
(13)
107
(2)
15
(14)
124
Employer contributions
36
33
40
37
(59)
(49)
(5)
(6)
(64)
(55)
938
974
24
21
121
126
1 083
1 121
Balance at beginning of year
Benefit payments and refunds
Pension obligation
1 503
1 265
32
22
124
111
1 659
1 398
Interest cost
55
57
61
63
Current service cost
59
45
63
48
Benefit payments and refunds
(60)
(50)
(5)
(5)
(65)
(55)
Actuarial losses (gains) arising from

changes in financial assumptions
(42)
186
(2)
(3)
13
(47)
205
1 503
35
32
121
124
1 671
1 659
(529)
(11)
(11)
(588)
(538)
1 515
Net pension (liability) asset
(577)
The loss on pension fund assets for the MHPF for the fiscal year ended March 31, 2016 was
0.97% (2015 - 12.80% return). The loss for the Centra curtailed plan fund assets for the year ended
March 31, 2016 was 1.39% (2015 - 12.80% return). The weighted average term to maturity on fixed income
investments is 9.8 years (2015 - 9.4 years).
The investment income earned on the EHBP funds is based on the market rate of return that is earned by the
CSSF. For the year ended December 31, 2015, the CSSF earned a rate of return of 7.63% (2015 - 9.20%)
on fund assets.
94

The most recent actuarial valuations for the pension plans for going concern funding purposes were prepared
as at December 31, 2015, at which date the Manitoba Hydro Plan was 87% and the EHBP was 103% funded.
The Manitoba Hydro Plan is exempt from the funding and solvency test funding requirements of The Pension
Benefits Act. The Centra curtailed pension plans are subject to a solvency valuation for funding purposes with
the latest valuation taking place as at December 31, 2015. The Centra Salaried, Union and Rural plans were
92%, 106% and 91% funded, respectively, at that date.
The corporations pension expense related to each of the pension benefit plans is as follows:
Manitoba Hydro Plan

2016
2015
Interest on assets
Interest on obligation
Administrative fees
59
(38)
55
3
79
45
(42)
57
3
63
EHBP
2016
4
(1)
1
4
2015
Centra curtailed
pension plans
2016
2015
3
(1)
1
3
(5)
5
-
(5)
5
-
Pension expense for the former Winnipeg Hydro employees is equal to employer contributions to the WCEBP.
Total contributions to the WCEBP during the year amounted to $1 million (2015 - $1 million) and reflect
an employer contribution rate approximating 5.50% of pensionable earnings as of January 2, 2016. Pension
expense for MHUS and MHI is equal to the employer contributions and is expensed during the year. The
amounts are not material.
Assumptions
The significant actuarial assumptions adopted in measuring the corporations pension and other employee
benefit obligations are as follows:
Discount rate - pensions

Discount rate - other benefits
Rate of compensation increase, including merit
and promotions
Long-term inflation rate
2016
2015
2014
3.90%
3.90%
3.70%
3.70%
4.50%
3.70%
1.50 - 2.00%
1.50 - 2.00%
1.50 - 2.00%
2.00%
2.00%
2.00%
95

Sensitivity of assumptions
The sensitivities of the principle assumptions used to measure the defined benefit obligations are set out below:
Impact on
Impact on
Change in
Manitoba
Centra curtailed
Assumption
assumption
Hydro Plan
Impact on EHBP
pension plans
Discount rate
Inflation rate
Wage rate
+/-0.50%
+/-0.10%
+/-0.10%
125
3
3
4
-
8
-
The sensitivity analyses are based on a change in a significant assumption, keeping all other assumptions
constant. The sensitivity analyses may not be representative of an actual change in the defined benefit
obligation as it is unlikely that the changes in assumptions would occur in isolation of one another.
Benefit plan asset allocation
The following is a summary of the asset mix of the plans investments at fair value:
Equities
Bonds and debentures
Real estate
Infrastructure
Short-term investments
96
March 31,
2016
MHPF
March 31,
2015
62%
21%
11%
5%
1%
100%
64%
20%
10%
4%
2%
100%
Centra curtailed pension plans

April 1, March 31, March 31,
April 1,
2014
2016
2015
2014
65%
20%
10%
3%
2%
100%
61%
22%
11%
4%
2%
100%
65%
21%
10%
3%
1%
100%
66%
20%
9%
3%
2%
100%

Other employee future benefits

Manitoba Hydro also provides some unfunded non-pension employee future benefits including banked
incidental days, vacation days, long-term disability, workers compensation, retiree health spending, sick leave
vesting and severance. The following table presents information concerning other employee future benefits:

Interest cost
Benefit payments
Actuarial loss from changes in financial assumptions
Actuarial loss from changes in demographic assumptions
Benefits liability
2016
2015
266
7
22
(24)
271
235
7
27
(23)
18
2
266
Key management personnel

The key management personnel of the corporation have been defined as members of the
Manitoba Hydro-Electric Board and Manitoba Hydros executives. The directors fees are authorized by the
Lieutenant Governor in Council. Manitoba Hydros executives receive a base salary, in addition to non-cash
benefits, employer contributions to the corporations post-employment defined pension plan and other
post-employment benefits.
Key management personnel compensation is as follows:
Salaries and other short-term employee benefits

Post-employment benefits*
2016
2015
3
3
3
3
*Amounts round to less than $1 million.
97

Note 28
Deferred revenue
Contributions in aid of construction

Bipole III contribution
Deferred revenue
March 31, 2016
March 31, 2015
April 1, 2014
434
100
3
537
(2)
535
408
49
5
462
(3)
459
377
19
3
399
(1)
398
Contributions in aid of construction are required from customers whenever the costs of extending service
exceed specified construction allowances. These contributions include government grants. Contributions are
initially recorded as deferred revenue and are subsequently recognized as revenue over the lives of the
related assets.
The PUB has directed that the following percentages of approved rate increases be set aside as a Bipole III
contribution to be utilized to mitigate the required rate increases when Bipole III is placed in-service:
- Order 43/13
- Order 49/14
- Order 73/15
1.50% of the approved 3.50%

During the year, $51 million (2015 - $30 million) was set aside for this purpose. The period over which this
balance will be recognized into net income will be determined by the PUB at a future regulatory proceeding.
98

Note 29
Provisions
Asset retirement
obligation
Affordable
Energy Fund
Total

Provisions made
Provisions used
15
2
(2)
15
11
(5)
6
26
2
(7)
21
Provisions made
Provisions used
Gain on derecognition
15
(3)
27
(2)
4
15
(2)
(3)
31
March 31, 2016
March 31, 2015
April 1, 2014
1
30
31
4
17
21
5
21
26
Analyzed as:
Current (Note 25)
Non-current
Asset retirement obligations

An asset retirement obligation continues to be recognized for the future decommissioning of the Brandon
Thermal Generating Station. The corporation estimates the undiscounted cash flows required to settle the
asset retirement obligations are approximately $15 million (2015 - $15 million), which is expected to be
incurred in 2024.
The corporation established a new asset retirement obligation in 2015-16 for the removal and disposal
of PCB contaminated fluid in equipment bushings at transmission and distribution stations. The estimated
undiscounted cash flows required to settle the asset retirement obligation are approximately $19 million,
which is expected to be incurred by 2024.
The asset retirement obligation related to the partial decommissioning of the Pointe du Bois Generating
Station spillway was fully extinguished in 2015-16.
No funds are being set aside to settle the asset retirement obligations. The discount rates used to determine
the fair market value of asset retirement obligations range from 3.88% to 3.92% (2015 - 2.10% to 6.75%).
99


In accordance with the requirements of The Winter Heating Cost Control Act, Manitoba Hydro established an
Affordable Energy Fund in the initial amount of $35 million for the purpose of providing funding for projects
that would not otherwise be funded by Power Smart programs. Expenditures of $2 million (2015 - $5 million)
during the year were charged to operations with the regulatory deferral balance and the provision reduced
accordingly.
Note 30
Wuskwatim Power Limited Partnership

Taskinigahp Power Corporation
Keeyask Hydropower Limited Partnership
Cree Nation Partners Limited Partnership
Fox Lake Cree Nation Keeyask Investments Inc.
York Factory First Nation Limited Partnership
March 31, 2016
March 31, 2015
April 1, 2014
52
62
73
52
18
18
88
140
34
12
12
58
120
73
Manitoba Hydro has entered into the Wuskwatim Power Limited Partnership (WPLP) with Taskinigahp
Power Corporation (TPC) to carry on the business of developing, owning and operating the Wuskwatim
Generating Station. TPC is owned beneficially by Nisichawayasihk Cree Nation (NCN). The generating station
and associated transmission assets were placed into service during the 2012-13 year.
The 33% ownership interest of TPC in the WPLP of $52 million (2015 - $62 million) is represented as a
non-controlling interest within the equity section of the consolidated statement of financial position. TPCs
portion of the net loss of the WPLP during 2015-16 is $10 million (2015 - $11 million).
In accordance with the partnership agreements, Manitoba Hydro provides debt financing to TPC for
investment in WPLP. As at March 31, 2016, Manitoba Hydro has provided advances to TPC of $88 million
(2015 - $88 million). In addition, Manitoba Hydro provides advances on future WPLP distributions to NCN.
As at March 31, 2016, Manitoba Hydro has provided advances to NCN of $6 million (2015 - $3 million).
The advances plus interest are repayable by TPC through distributions from the WPLP.
100

Manitoba Hydro has also entered into the Keeyask Hydropower Limited Partnership (KHLP) with Tataskweyak
Cree Nation (TCN) and War Lake First Nation (War Lake) operating as Cree Nation Partners (CNP),
York Factory First Nation (York Factory) and Fox Lake Cree Nation (Fox Lake) to carry on the business of
developing, owning and operating the Keeyask Generating Station. Cree Nation Partners Limited Partnership
(CNPLP) is owned beneficially by TCN and War Lake through CNP, FLCN Keeyask Investments Inc. (FLCNKII) is
owned beneficially by Fox Lake and York Factory First Nation Limited Partnership (YFFNLP) is owned beneficially
by York Factory. The generating station is currently under construction and projected to be placed into service
in 2019.
The 15% ownership interest of CNPLP, the 5% ownership interest of FLCNKII and the 5% ownership interest
of YFFNLP in the KHLP totaling $88 million (2015 $58 million) is represented as a non-controlling interest
within the equity section of the consolidated statement of financial position.
In accordance with the partnership agreements, Manitoba Hydro provides debt financing to CNPLP, FLCNKII and
YFFNLP. As at March 31, 2016, Manitoba Hydro has provided advances to CNPLP of $52 million (2015 - $33 million),
FLCNKII of $17 million (2015 - $11 million) and YFFNLP of $17 million (2015 - $11 million). The advances
plus interest are repayable by CNPLP, FLCNKII and YFFNLP through distributions from the KHLP.
Summarized financial information before intercompany eliminations for WPLP and KHLP are as follows:
WPLP
Current assets
Non-current assets
Current liabilities
Revenue
Net loss
KHLP
Current assets
Non-current assets
Current liabilities
March 31, 2016
March 31, 2015
April 1, 2014
16
1 548
48
1 572
10
1 601
23
1 383
25
1 406
39
1 350
86
(31)
84
(34)
8
2 303
19
1 600
156
1 651
172
1 117
101

Note 31
Financial instruments
The carrying amounts and fair values of the corporations non-derivative financial instruments were as follows:
March 31, 2016
March 31, 2015
April 1,2014
Level
Carrying
value
Fair
value
Carrying
value
Fair Carrying
value
value
Fair
value
956
956
494
494
142
142
350
350
394
394
446
446
Loans and other receivables (including current portion)
322
347
497
618
443
512
114
114
111
111
Fair value through profit and loss

Loans and receivables
Available-for-sale
Other financial liabilities
723
723
529
529
537
537
Long-term debt (including current portion)
14 527
16 948
12 680
15 903
10 868
12 592
Mitigation liability (including current portion)
238
282
254
311
229
277
Major development liability (including current portion)
219
240
218
252
67
68
Perpetual obligation (including current portion)
215
375
215
410
223
327
*carried at values that approximate fair value
The fair value measurement of financial instruments is classified in accordance with a hierarchy of three levels,
based on the type of inputs used in making these measurements:
Level 1 - Quoted prices in active markets for identical assets and liabilities;
Level 2 - Inputs other than quoted prices that are observable in active markets for the asset or liability; and
Level 3 - Inputs for the asset or liability that are not based on observable market data.
Fair value Level 2 measurements are derived from quoted market yields at the close of business on the
consolidated statement of financial position date for similar instruments available in the capital market. There
are nominal amounts measured at Level 3 which are based on internally developed valuation models, and are
consistent with valuation models developed by other market participants in the wholesale power markets.
The carrying values of all other financial assets and liabilities approximate their fair values.
Financial risks
During the normal course of business, Manitoba Hydro is exposed to a number of financial risks including
credit and liquidity risks and market risk resulting from fluctuations in foreign currency, interest rates and
commodity prices. Risk management policies, processes and systems have been established to identify and
102

analyze financial risks faced by the corporation and its subsidiaries, to set risk tolerance limits, establish controls
and to monitor risk and adherence to policies. An integrated risk management plan has been developed and
reviewed by the Manitoba Hydro-Electric Board to ensure the adequacy of the risk management framework
in relation to the risks faced by the corporation. The nature of the financial risks and Manitoba Hydros strategy
for managing these risks has not changed significantly from the prior year.
a) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party
by failing to discharge an obligation. Manitoba Hydro is exposed to credit risk related to sinking fund
investments, temporary investments and pension fund investments. The corporation limits its exposure
to credit risk by only investing in government-guaranteed bonds, highly rated investments and welldiversified investment portfolios.
The corporation is also exposed to credit risk related to domestic and export energy sales. Credit risk
related to domestic sales is mitigated by the large and diversified electric and gas customer base. Customers
participating in residential financing programs are subject to credit reviews and must meet specific criteria
before they are approved for a residential loan or financing. Equity loans advanced to Indigenous partners
are secured by their ownership investment units in the Wuskwatim and Keeyask Generating Stations.
Credit risk in the export power market is mitigated by establishing credit requirements, conducting
standard credit reviews of all counterparties and setting and monitoring exposure limits for each of these
counterparties. Letters of credit and netting provisions are also in place to further mitigate credit risk.
The maximum exposure to credit risk related to domestic and export energy sales is its fair value.
The values of the corporations aged accounts receivable and related allowance for doubtful accounts are
presented in the following table:
Under 30 days
31 to 60 days
61 to 90 days
Over 90 days
Allowance for doubtful accounts
Total accounts receivable
Manitoba
Extraprovincial
March 31,
2016
March 31,
2015
April 1,
2014
172
15
8
25
220
(10)
210
21
21
21
193
15
8
25
241
(10)
231
228
19
9
26
282
(9)
273
247
25
9
23
304
(9)
295
The provision for bad and doubtful accounts is reviewed annually, based on an estimate of aged receivables
that are considered uncollectible.
103

b) Liquidity risk
Liquidity risk refers to the risk that Manitoba Hydro will not be able to meet its financial obligations as
they come due. The corporation meets its financial obligations when due through cash generated from
operations, short-term borrowings, long-term borrowings advanced from the Province of Manitoba and
sinking fund withdrawals.
The following is an analysis of the contractual undiscounted cash flows payable under financial liabilities as
at the consolidated statement of financial position date:
Carrying
value
2017
2018
2019
2020
2021
2022 and
thereafter
723
723
Long-term debt**
14 631
1 139
1 156
1 769
1 061
1 984
21 492
Mitigation liability
Major development liability
238
38
18
29
18
65
424
219
26
15
14
15
15
648
215
16
16
16
16
16
16 *
16 026
1 942
1 205
1 828
1 110
2 080
22 580
Non-derivative financial liabilities

*per year in perpetuity

**includes current portion and interest payments
c) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market prices. Manitoba Hydro is exposed to three types of market risk: foreign exchange
risk, interest rate risk and commodity price risk associated with the price of electricity and natural gas.
Manitoba Hydro continually monitors its exposure to these risks and may use hedges or derivative
contracts to manage these risks.
(i) Foreign exchange risk
Manitoba Hydro has exposure to U.S. dollar foreign exchange rate fluctuations primarily through the
sale and purchase of electricity in the U.S. and through borrowing in U.S. markets. This exposure is
managed through a long-term natural hedge between U.S. dollar cash inflows from export revenues
and U.S. dollar cash outflows for long-term coupon and principal payments.
To mitigate annual net income impacts due to foreign exchange rate fluctuations, long-term cash
flow hedges have been established between U.S. long-term debt balances and future U.S. export
revenues as well as between U.S. interest payments on dual currency bonds and future U.S. export
revenues. Accordingly, translation gains and losses for U.S. long-term debt obligations in effective
hedging relationships with future export revenues, are recognized in OCI until future hedged U.S.
104

export revenues are realized, at which time the associated gains or losses in AOCI are recognized
in net income. For the year ended March 31, 2016, unrealized foreign exchange translation
losses of $47 million (2015 - $249 million losses) were recognized in OCI and net gains of
$1 million (2015 - $8 million) were reclassified from OCI into net income.
In addition to natural hedging relationships, cross currency swap arrangements transacted by the
Province of Manitoba on the corporations behalf are utilized to manage exchange rate exposures
and as a means to capitalize on favourable financing terms in either U.S. or Canadian capital markets.
Cross currency agreements represent an exchange of principal and/or interest flows denominated in
one currency for principal and/or interest flows denominated in another. Such transactions effectively
amend the terms of the original debt obligation with the Province of Manitoba with the swapped
debt arrangement.
As at March 31, 2016, a change in the Canadian dollar of plus (minus) $0.10 relative to the U.S. dollar
would increase (decrease) net income by nil (2015 - decrease (increase) net income by $2.8 million),
while OCI would increase (decrease) by $125 million (2015 - $140 million).
(ii) Interest rate risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate due to
changes in market interest rates. Manitoba Hydro is exposed to interest rate risk associated with
temporary investments, floating rate short-term and long-term debt, fixed rate long-term debt
maturing within 12 months, less sinking fund withdrawals, offset by the change in interest capitalization.
As at March 31, 2016, an increase or decrease of 1% in the interest rate would reduce or increase net
income, respectively, by $4 million (2015 - $10 million), with no impact to OCI.
Interest rate swap agreements transacted by the Province of Manitoba on the corporations behalf
are utilized to manage the fixed and floating interest rate mix of the total debt portfolio, interest
rate exposure and related overall cost of borrowing. Interest rate swap agreements represent an
agreement between two parties to periodically exchange payments of interest without the exchange
of the principal amount upon which payments are based. The Province of Manitoba may also enter into
forward start interest rate swap arrangements where the agreement to exchange interest payments
commences at some future date. In either swap arrangement, the terms of the debt advanced by the
Province of Manitoba to the corporation are amended by the swap.
(iii) Commodity price risk
The corporation is exposed to electricity price risk that results from volatility of market prices and
natural gas price risk through its purchase of gas for delivery to customers throughout Manitoba. The
corporation mitigates commodity price risk through its limited use of derivative financial instruments.
Manitoba Hydro does not use derivative contracts for trading or speculative purposes.
105

The corporation has open financial transmission rights as at March 31, 2016. These rights are reported
as derivatives and carried at fair value on the consolidated statement of financial position in accounts
receivable and accrued revenue. The unrealized fair value gains of $1 million (2015 - $2 million)
are classified as Level 3 fair value measurements based on a valuation model that was internally developed
for the wholesale power markets.
Note 32
Capital management
Manitoba Hydro manages its capital structure to ensure that there is sufficient equity to absorb the financial
effects of adverse circumstances and to ensure continued access to stable low-cost funding for capital projects
and ongoing operational requirements.
The corporation monitors its capital structure on the basis of its equity ratio. Manitoba Hydros long-term target
is to achieve a minimum equity ratio of 25%.
The corporations equity ratio was as follows:
Long-term debt
Less: Cash and cash equivalents (Note 15)
Sinking fund investments (Note 19)
Net debt
Retained earnings
Contributions in aid of construction (Note 28)
Bipole III contribution (Note 28)
Non-controlling interest (Note 30)
Total equity
Equity ratio
March 31, 2016
March 31, 2015
April 1, 2014
14 201
326
(956)
13 571
12 303
377
(494)
(114)
12 072
10 460
408
(142)
(111)
10 615
2 828
(776)
434
100
140
2 726
2 779
(720)
408
49
120
2 636
2 643
(336)
377
19
73
2 776
17%
18%
21%
Manitoba Hydro issues debt for its capital requirements under the authority of The Manitoba Hydro Act,
The Loan Act and The Financial Administration Act. The Manitoba Hydro Act grants the corporation the power
to issue up to $500 million of short-term promissory notes. Manitoba Hydro submits annual requests under
The Loan Act for the necessary borrowing authority for new capital requirements. Authority to refinance
any maturing long-term debt is provided through The Financial Administration Act. The majority of Manitoba
Hydros long-term debt is obtained through advances from the Province of Manitoba.
106

Note 33
Related parties
Manitoba Hydro is a Crown corporation controlled by the Province of Manitoba. As a result, the corporation
has a related party relationship with all entities that are controlled, jointly controlled or significantly influenced
by the Province of Manitoba. However, as permitted by IAS 24 Related Party Disclosures, the corporation is
exempt from disclosure requirements relating to transactions with the Province of Manitoba and any other
entity that is a related party because the Province of Manitoba has control, joint control or significant influence
over both the corporation and the other entity.
Significant transactions with the Province of Manitoba and other related provincial entities are comprised of:
Long-term debt the corporation obtains the majority of its long-term debt through advances
from the Province of Manitoba (Note 23),
Provincial Debt Guarantee Fee the corporation pays the Province of Manitoba
an annual fee on the outstanding debt. The Provincial Debt Guarantee Fee of
$122 million (2015 - $109 million) for the year was 1.00% (2015 1.00%) of the corporations
total outstanding debt guaranteed by the Province of Manitoba,
Sale of electricity and natural gas energy sales to related parties,
Water rentals amounts are paid to the Province of Manitoba for the use of water
resources in the operation of the corporations hydroelectric generating stations. Water
rental rates during the year were $3.34 per MWh (2015 - $3.34 per MWh) totaling
$117 million (2015 - $117 million), and
Taxes amounts are paid to the Province of Manitoba for corporate capital tax, payroll tax
(Note 13) and provincial sales tax all of which are incurred in the normal course of business.
Routine operating transactions with related parties are settled at prevailing market prices under normal
trade terms.
107

Note 34
Commitments and contingencies
Manitoba Hydro has energy purchase commitments of $1 454 million (2015 - $1 499 million) that
relate to future purchases of wind, natural gas (including transportation and storage contracts), coal and
electricity. Commitments are primarily for wind, which expire in 2038, and natural gas purchases, which
expire in 2020. In addition, other outstanding commitments principally for construction are approximately
$3 511 million (2015 - $3 567 million).
The corporation will incur future costs associated with the assessment and remediation of contaminated lands
and facilities and for the phase-out and destruction of PCB mineral oil from electrical equipment. Although
these costs cannot be reasonably determined at this time (except for items already recognized as asset
retirement obligations), a contingent liability exists.
Due to the size, complexity and nature of Manitoba Hydros operations, various legal and operational matters
are pending. Management believes that any settlements related to these matters will not have an adverse
effect on Manitoba Hydros consolidated financial position or results of operations.
Manitoba Hydro provides guarantees to counterparties as part of its use of natural gas derivative commodity
contracts. Guarantees issued as at March 31, 2016 totaled $368 million (2015 - $361 million) and do not
have specific maturity dates. Letters of credit in the amount of $68 million (2015 - $67 million) have been
issued for construction and energy related transactions with maturities until 2049.
108

Note 35
Segmented information
Operating segments are reported consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing
performance of operations, has been identified as the President and Chief Executive Officer. The corporation
is managed as three segments, electricity operations, natural gas operations and all other segments, based on
how financial information is produced internally for the purposes of making operating decisions.
Segment descriptions
Electric Operations
Electric operations derives its revenue from the sale of electricity in both Manitoba and to the export markets.
Manitoba Hydros electric operations also includes subsidiaries WPLP, KHLP and 6690271 Manitoba Ltd.
Electricity is sold in Manitoba to residential, commercial and industrial customers while extraprovincial sales of
electricity are to the U.S. and Canadian markets. Domestic electricity sales are regulated by the PUB.
Natural Gas Operations
The operations of Centra make up the entire natural gas operations segment. Centra is regulated by the
PUB and generates revenue through the sale and distribution of natural gas to residential, commercial and
industrial customers throughout Manitoba.
All Other Segments
All other segments includes the operations of all other subsidiaries of the corporation, including MHI, MHUS,
Minell and Teshmont.
MHI derives its revenue by providing professional consulting, operations, maintenance and project management
services to energy sectors world-wide, either exclusively or through partnerships. MHI also provides research
and development services and products to the electrical power system industry.
MHUS generates revenue by providing meter reading, interactive voice response systems and contracted
services primarily to Manitoba Hydro and Centra.
Minell operates a pipeline transmission system extending from Moosomin, Saskatchewan to Russell, Manitoba
and is regulated by the National Energy Board. Revenues are derived through the rentals of Minells gas
transmission facilities to Centra as they are used solely for the transportation of natural gas on behalf of
Centra.
Teshmont is a holding company established to acquire a 40% ownership of Teshmont Consultants Limited
Partnership, which carries on a high voltage engineering and consulting practice.
109

Segmented results
Results by operating segment for the years ended March 31, 2016 and 2015 are shown below. Intersegment
eliminations are presented to reconcile segment results to the corporations consolidated totals. Eliminations
have been made for intersegment transactions and balances.
Electric
Natural gas
All other
operations
operations
segments
2016
Eliminations
2015
2016
2015
2016
2015
2016
2015
1 845 1 838
355
428
58
50
Total
2016
2015
Revenues
External revenue
2 258 2 316
(10)
(9)
1845
1 838
356
429
67
58
(10)
(9) 2 258 2 316
Intersegment revenue
Expenses
Cost of gas sold
181
266
181
266
Finance expense
582
515
20
19
(2)
18
19
620
551
543
538
67
70
16
17
(12)
(11)
614
614
367
352
23
22
394
378
126
125
126
125
117
129
117
129
107
100
16
16
(1)
123
115
Other expenses
65
37
10
10
42
33
(3)
(3)
114
77
Finance income
(22)
(26)
(1)
(23)
(26)
12
12
(20)
(21)
1 893 1 779
329
415
58
49
(14)
(14) 2 266 2 229
Net income (loss) before net movement in

(48)
59
27
14
(8)
87
Net movement in regulatory deferral balances
75
41
(28)
(3)
47
38
Net Income (Loss)
27
100
(1)
11
39
125
Manitoba Hydro
37
111
(1)
11
49
136
(10)
(11)
(10)
(11)
27
100
(1)
11
39
125
regulatory deferral balances
110

Electric operations
Total assets
Total regulatory
deferral debit
balances
Total liabilities
Total regulatory
deferral credit
balances
Retained earnings
March
31,
2016
March
31,
2015
18 840
Natural gas operations
April 1,
2014
March
31,
2016
March
31,
2015
16 766
14 761
581
570
390
288
247
96
17 126
14 979
12 707
43
16
2 696
2 659
All other segments
Eliminations
March
April 1,
31,
2014 2016
March
31,
2015
March
April 1,
31,
2014 2016
March
31,
2015
565
71
61
50
(198)
(240)
122
124
482
498
507
13
12
16
2 548
65
66
55
57
48
39
Total
April 1,
2014
March
31,
2016
March
31,
2015
April 1,
2014
(196)
19 294
17 157
15 180
486
410
371
(124)
(74)
17 536
15 365
13 149
52
23
22
10
2 828
2 779
2 643
(85)
111
Financial statistics
IFRS

2016
CGAAP
2015
2014
2013
2012
2011
2010
2009
2008
2007
1 024
dollars are in millions
Revenues
Domestic Electric
Gas
Extraprovincial
Other
1399
1424
1 405
1 341
1 193
1 200
1 145
1 127
1 074
353
427
413
328
328
403
452
578
526
506
415
384
402
329
333
358
385
533
555
521
91
81
72
70
46
42
29
36
25
18
2 258
2 316
2 292
2 068
1 900
2 003
2 011
2 274
2 180
2 069
Expenses
Cost of gas sold
181
266
252
182
197
261
316
431
386
379
Finance expense
620
551
470
489
423
425
410
471
440
506
614
614
558
533
481
463
440
429
381
381
394
378
442
423
381
393
384
368
349
332
126
125
125
118
119
120
121
123
124
112
117
129
140
109
116
66
62
86
64
155
123
115
117
105
103
102
99
87
80
77
Other expenses
114
77
36
30
19
23
16
13
10
Finance income
(23)
(26)
2 266
2 229
2 140
1 989
1 839
1 853
1 848
2 008
1 834
1 947
122
Net income before net movement in regulatory accounts
(8)
87
152
79
61
150
163
266
346
Net movement in regulatory accounts
47
38
Net Income
39
125
152
79
61
150
163
266
346
122
Manitoba Hydro
49
136
174
92
61
150
164
266
346
122
Non-controlling
(10)
(11)
(22)
(13)
39
125
152
79
61
150
164
266
346
122
8 378
Assets
17 208
15 222
13 627
12 508
11 797
10 954
10 128
9 382
8 935
114
111
352
372
282
822
666
718
630
Current and other assets
2 086
1 821
1 901
1 682
1 622
1 646
1 487
1 499
2 113
1 914
Regulatory deferral debits
486
410
19 780
17 567
15 639
14 542
13 791
12 882
12 437
11 547
11 766
10 922
14 201
12 303
10 460
9 329
9 101
8 617
8 228
7 668
7 218
6 822
2 800
2 603
1 913
1 937
1 495
1 127
1 328
1 637
2 097
2 380
535
459
381
340
318
295
295
296
300
298
52
23
140
120
73
95
100
87
62
39
24
15
2 828
2 779
2 716
2 542
2 450
2 389
2 239
2 076
1 822
1 407
(776)
(720)
96
299
327
367
285
(169)
305
19 780
17 567
15 639
14 542
13 791
12 882
12 437
11 547
11 766
10 922

Long-term debt
Current and other liabilities
Deferred revenue
Regulatory deferral credits
Retained earnings
Accumulated other comprehensive income (loss)
Cash Flows
Operating activities
791
665
691
589
567
595
589
688
633
443
Financing activities
2 111
1 560
1 125
635
725
674
1 124
424
487
227
Investing activities
(2 440)
(1 873)
1 706
1 242
1 312
1 373
1 698
1 086
988
788
Financial Indicators
112
Equity ratio 1
17%
18%
24%
25%
26%
27%
27%
23%
27%
20%
Interest coverage 2
1.55
1.73
1.95
1.81
1.74
1.96
2.06
2.16
2.43
1.83
Capital coverage 3
1.37
1.20
1.35
1.25
1.13
1.25
1.34
1.77
1.62
1.10
Equity ratio represents equity (retained earnings plus accumulated other comprehensive income plus contributions in aid of construction plus non-controlling interest) divided by equity plus debt
(long-term debt plus notes payable minus sinking fund investments and temporary investments).
Interest coverage represents earnings before finance expense and depreciation and amortization divided by finance expense.
Capital coverage represents internally generated funds divided by capital construction expenditures.
Operating statistics
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
Electric System Capability

Capability (000 kW)
5 680
5 691
5 715
5 675
5 475
5 489
5 501
5 480
5 465
5 461
Manitoba firm peak demand (000 kW)
4 460
4 688
4 720
4 535
4 343
4 261
4 359
4 477
4 273
4 184
(4.9)
(0.7)
4.1
4.4
1.9
(2.2)
(2.6)
4.8
2.1
3.2
34 990
35 044
35 392
33 230
33 235
34 102
33 961
34 528
35 354
32 132
14
15
14
14
14
13
13
13
12
12
35 004
35 059
35 406
33 244
33 249
34 115
33 974
34 541
35 366
32 144
24 566
25 399
25 510
24 650
23 499
23 783
23 295
24 285
23 985
23 327
14
15
14
14
14
13
13
13
12
12
24 580
25 414
25 524
24 664
23 513
23 796
23 308
24 298
23 997
23 339
(3.3)
(0.4)
3.5
4.9
(1.2)
2.1
(4.1)
1.3
2.8
3.1
Per cent change
Electric System Supply

Total energy supplied (millions of kWh)
Generation
Isolated systems
Electric Load at Generation (millions of kWh)

Integrated system
Isolated system
Per cent change
Electric System Deliveries (millions of kWh)

Energy delivered in Manitoba
7 181
7 788
7 888
7 334
6 930
7 060
6 899
6 954
6 838
6 539
Commercial / Industrial
14 473
14 670
14 450
14 143
13 840
13 727
13 587
14 256
14 223
13 965
21 654
22 458
22 338
21 477
20 770
20 787
20 486
21 210
21 061
20 504
Extraprovincial
10 281
9 811
10 537
9 087
10 244
10 344
10 860
10 122
11 086
10 100
31 935
32 269
32 875
30 564
31 014
31 131
31 346
31 332
32 147
30 604
Residential
Gas Deliveries (millions of cubic metres)

Residential
498
597
664
602
509
591
581
696
682
653
748
870
964
849
728
821
803
866
856
811
Transportation
600
604
652
598
629
584
619
603
618
592
1 846
2 071
2 280
2 049
1 866
1 996
2 003
2 165
2 156
2 056
497 699
492 275
486 654
480 254
474 661
469 635
465 055
460 804
455 430
450 823
69 935
69 594
69 106
68 520
68 020
67 664
67 304
66 668
66 169
66 038
567 634
561 869
555 760
548 774
542 681
537 299
532 359
527 472
521 599
516 861
251 142
249 313
247 010
244 768
242 813
241 123
239 535
239 597
237 724
236 086
25 716
25 504
25 218
25 018
24 886
24 838
24 766
23 411
23 435
23 483
276 858
274 817
272 228
269 786
267 699
265 961
264 301
263 008
261 159
259 569
6 410
6 483
6 556
6 463
6 413
6 394
6 236
6 080
5 841
5 773
Number of Customers
Electric:
Residential
Gas:
Residential
Full Time Equivalent (FTE) 1
Regular FTEs (the straight time hours of work for one employee) for Manitoba Hydro, including subsidiaries.
113
Major electric & gas facilities
Churchill
Lac Brochet
Tadoule Lake
Brochet
Missi Falls
Lynn Lake
York Factory
Henday
Gillam
Limestone
Long Spruce
Kettle
Radisson
Split Lake
Laurie River 2
Laurie River 1
Nelson House
Notigi
Pukatawagan
Wuskwatim
Thompson
Kelsey
Shamattawa
Sipiwesk
Oxford House
Flin Flon
Ponton
Jenpeg
Cross Lake
Gods Lake Narrows
Wasagamack
Norway House
The Pas
Gods River
Garden Hill
Red Sucker Lake
St. Theresa Point
LEGEND
Grand Rapids
Poplar River
Berens River
Bloodvein
Little Grand Rapids
Pine Falls
Great Falls
Dauphin
McArthur
Selkirk
Brandon
Portage
Dorsey
St. Leon
St. Joseph
114
Winnipeg
Pointe du Bois
Slave Falls
Seven Sisters
Hydro generating
Thermal generating
Diesel generating
Wind generating
Converter stations
Control structures
Diversion channels
Points of interchange
HVdc transmission
500-kV transmission
230-kV transmission
138-kV transmission
115-kV transmission
66-kV transmission
25-kV transmission
TransCanada Pipeline
Gas distribution
Sources of electrical energy generated & purchased

For the Year Ended March 31, 2016
Nelson River
Billion kWh generated
78.32 %
28.1
Limestone
25.26 %
Kettle
24.04 %
Long Spruce
20.08 %
Saskatchewan River
Grand Rapids
4.25 %
1.5
4.25 %
Laurie River
Kelsey
6.62 %
2.32 %
Laurie River 1
0.05 %
Laurie River 2
0.05 %
Burntwood River
4.10 %
Winnipeg River
Seven Sisters
0.0
10.45 %
3.8

Wuskwatim
Great Falls
2.31 %
1.75 %
Pointe du Bois
0.80 %
Slave Falls
1.15 %
McArthur
1.23 %
0.16 %
0.1
Brandon
0.14 %
Selkirk
0.02 %
Purchases (excl. wind)
0.24 %
Billion kWh purchased
Wind
3.21 %
Pine Falls
0.10 %
Jenpeg
Thermal
0.1
2.38 %
Billion kWh purchased
0.9
1.5
4.10 %
Manitoba Hydro generating stations & capabilities

Interconnected Capabilities
Station
Location
Number of units
Net Capability (MW)
Great Falls
Winnipeg River
129
Seven Sisters
Winnipeg River
165
Pine Falls
Winnipeg River
84
McArthur
Winnipeg River
56
Pointe du Bois
Winnipeg River
16
75
Slave Falls
Winnipeg River
68
479
Hydraulic
Grand Rapids
Saskatchewan River
Kelsey
Nelson River
286
Kettle
Nelson River
12
1220
Jenpeg
Nelson River
115
Long Spruce
Nelson River
10
980
Limestone
Nelson River
10
1350
Laurie River
10
Burntwood River
211
Brandon
327
Selkirk
125
Laurie River (2)

Wuskwatim
Thermal
Isolated Capabilities
Diesel
Brochet
Lac Brochet
Shamattawa
Tadoule Lake
Total Generating Capability
5 690
115
Manitoba Hydro Place

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PO Box 815
Winnipeg, Manitoba, Canada
R3C 0G8
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publicaffairs@hydro.mb.ca
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Manitoba Hydro-Electric Board 65th Annual Report

Letter to the Minister

President & CEOs letter to customers

Major projects update

Targets, results and priorities

Managements discussion and analysis

Consolidated financial statements

Major electric and gas facilities

Chairs Letter to the Minister of Crown Services

July 29, 2016

*Manitoba Hydro is a licensee of the Trademark and Official Mark.

President & CEOs Letter to Customers

Manitoba has a tremendous advantage generating

Ive come to appreciate just how committed our

Kelvin Shepherd, P.Eng

Major projects update

SAFETY IN THE WORKPLACE

Accident severity rate

Accident frequency rate

System average interruption

System average interruption

WORKFORCE MANAGEMENT & INDIGENOUS RELATIONS

Persons with disabilities

PROTECTING THE ENVIRONMENT

DEMAND SIDE MANAGEMENT

Natural gas energy

Corporate Integrity Program

Number of disclosures ongoing from 2014-15:

Number of disclosures acted upon: 3

Number of disclosures not acted upon:

Number of investigations commenced/continued:

Number of disclosures that were verified:

Number of disclosures that were not verified:

Number of disclosures carried forward to 2016-17:

Corrective actions were taken for the verified incidents, as follows:

Manitoba Hydro-Electric Board

Appearing from left to right:

Dr. Annette Trimbee

H. Sanford Riley, Chair

Missing: Jennefer Nepinak

Manitoba Hydro Senior Officers

Kelvin Shepherd, P.Eng

E. Ruth Kristjanson, BA (Hons), MA

Lloyd Kuczek, P. Eng, MBA

Shane Mailey, P. Eng

Lorne Midford, P. Eng

Darren B. Rainkie, CPA, CA, CBV

Ken M. Tennenhouse, LL.B

Natural Gas Segment

Consolidated Statement of Income

Consolidated Statement of Financial Position

Consolidated Statement of Cash Flows

Consolidated Statement of Comprehensive Loss

Consolidated Statement of Changes in Equity

Notes to Consolidated Financial Statements

10-Year Financial Statistics

10-Year Operating Statistics

Managements Discussion & Analysis