Rate mitigation is having a significant impact on NL Hydro’s bottom line.

NL Hydro’s Chief Financial Officer Lisa Hutchens told NL Hydro’s AGM that the utility recorded $479 million net income in 2024 compared to $619 million in 2023, largely a result of rate mitigation.

Hutchens says a $111 million increase in revenue from export energy sales helped to offset the revenue dedicated to rate mitigation, something she says NL Hydro remains committed to.

“In 2024, Hydro began to implement the last component of the province’s rate mitigation plan, and we used $90 million of funds that came from our various operations for rate mitigation. Anytime we use hydro funds to NL Hydro towards rate mitigation, it also reduces our net income.”

NL Hydro is posting a loss in the first quarter of 2025, something they haven’t seen in years. Hutchens says that is the result of a $441 million transfer for rate mitigation applied in February.

“From now until 2030, future rate mitigation transfers, like these, will also reduce our net income.”

Oil and gas saw a $114 million dollar reduction in net income for 2024 compared to 2023, in part due to the Sea Rose FPSO being offline, and reduced operations at Hebron and Hibernia that have since been resolved.