Message From The Chair And CEO

Dear Newfoundlanders and Labradorians,

We have never been more proud to deliver an annual report. This past year was
transformational and memorable. It was a year that will be defined by smart, customerfocused
resource planning, the resilience of our beloved company Town of Churchill Falls,
and by an announcement that changes the course of the history of our province and sets
the path for a more prosperous future for Newfoundland and Labrador.

That’s where we’ll begin. On December 12, we were truly honoured to join the Premiers of
Newfoundland and Labrador and Québec, our respective Ministers as well as Grand Chief
Pokue of Innu Nation, to announce a deal that will unlock more value from the Churchill
River and course correct a decades old, unbalanced energy deal – the 1969 Churchill River
Contract. The new Power Purchase Agreement, combined with the new developments that
are part of the deal, represent more money, more jobs, and more energy for
Newfoundlanders and Labradorians. Newfoundland and Labrador Hydro (Hydro) was
humbled and proud to have a key seat at that negotiating table.

Our team has also been busy planning for the continued reliability of the province’s
electricity system. The need for reliable electricity is only growing. Across the Island,
throughout Labrador, and even beyond our provincial borders, people need electricity they
can count on. Last July, we delivered our 2024 Resource Adequacy Plan to the
Newfoundland and Labrador Board of Commissioners of Public Utilities. It was an
evidence-based plan to power the province—focused on meeting forecasted growth for the
Island and maintaining reliability for Island customers at the least cost for our customers
and which included exciting new electricity projects for the Island.

We are also thinking about growth in Labrador. In Labrador West, development is currently
limited by a near capacity transmission system, which restricts the amount of available
hydro electricity that can be delivered to the region. Last fall, we announced a study of
transmission in the region—a step towards eliminating those constraints while also helping
increase reliability in the region and supporting industrial development and
decarbonization.

Together with the Government of Newfoundland and Labrador (Government), we finalized
the Muskrat Falls Rate Mitigation Plan. Hydro’s annual rate increase is now limited to 2.25
per cent up to and including 2030 for domestic residential rates, preventing rates from
otherwise doubling. By foregoing financial dividends to Government, Hydro will use
internally generated funds to pay the costs of supply from Muskrat Falls. Hydro finished
the year in a strong financial position, with a net income of $479 million. This strong
financial position enabled us to use internal funds to support the provincial Rate Mitigation
Plan. As a Crown corporation, our financial strength will continue to provide value for
customers and for Government.

As we reflect on 2024, there is an event that truly defines our culture and embodies our
company values, and that is how this organization came together to support the people of
Churchill Falls. Safety. Community. Commitment. Collaboration. Forward-thinking. These
values were on full display last summer while forest fires threatened not only our worldclass
facility, but also the close-knit community of Churchill Falls. We are incredibly proud
of our response and thankful for the support received from across the province and
beyond.

Every day, we are proud of the incredible accomplishments made possible by the work of
an even more incredible team. As we venture into 2025, with the expertise of the Hydro
team and support from our Board of Directors and Government, we will continue to apply
lessons learned from the past, listen to the people of Newfoundland and Labrador, and
keep our customers top of mind.

We also remember our former Board of Directors Chair, Mr. Albert Williams, who passed
last fall. Mr. Williams was a highly valued part of the Hydro team and a kindred spirit to all
those working towards a bright future for our industry and province. We offer our
condolences to his family, friends and colleagues; he will be missed.

Our vision for a clean energy future can only be achieved through collaboration and
bringing together diverse perspectives. As we look for new ways to meet the future needs
of our system, we will keep working to positively contribute to a sustainable, economically
bright future for Newfoundland and Labrador.

We are committed to the significant work ahead in 2025 and look forward to delivering
even more value as your Crown utility.

The future is bright.