Enmax declares record dividend for City of Calgary

Enmax has declared a dividend of $103 million to be paid to the City of Calgary, according to its 2024 financial results.

That dividend is up from the $94 million that was paid last year.

The city-owned utility presented its 2024 annual report to city council's audit committee on Thursday.

Enmax reported its comparable net earnings for 2024 were $343 million, which represented a year-over-year change of nine per cent.

The company said much of the increase in earnings was due to an increase in transmission and distribution margins in its regulated businesses and an increase in the electricity margin in its competitive business.

Enmax reported an increase in retail customers and lower supply costs in 2024.

So even though electricity prices in its Alberta operations eased last year from the previous record highs in 2023, it made more money.

The president and CEO of Enmax, Mark Poweska, said 2024 was a strong year for the company and all parts of it contributed to that picture.

"We have our competitive business here in Alberta. We also have a regulated business here in Alberta, and we have a regulated business in Maine," said Poweska.

"That has really given us the opportunity to smooth earnings."

That U.S. business is Versant Power, which is a utility in the state of Maine that was acquired by Enmax in 2020 for $1.8 billion.

"It was a good strategic investment for us," said Poweska, adding it helps to diversify Enmax's holdings. He said that includes adding a more stable regulated business to its portfolio, which also provides U.S. currency.

The chair of the city's audit committee, Coun. Evan Spencer, said some Calgarians scratched their heads initially about that purchase.

"I think we can continue to trust that this is a partnership that's really driving value for Calgarians," he said.

The Enmax annual dividend, once declared, is actually paid to the city on a quarterly basis.

City council will decide how that money is spent. Spencer said there will be no shortage of possibilities.

"The city is in a deficit position on a whole variety of priorities, so it is not hard finding a place to spend it. It really just ends up being which one we think is going to get the most value for Calgarians," said Spencer.

Enmax's annual dividend to Calgary has been increasing in recent years since council directed the utility to provide greater returns from its earnings.

From 2004 to 2022, the utility paid between $40 million and $68 million annually to the city.

Since then, the dividend has been climbing.

In 2023, the payment to the sole shareholder was $82 million, rising to $95 million last year and reaching a record level of $103 million this year.