Question No.1: The organization and its Mission.

a)     When and why was the organization established?

Manitoba Hydro Company was established in the year 1961 in the province of Manitoba, Canada. The company was governed by the Manitoba Hydro electric Act and its Hydro Electric Board. It was formed with a purpose to fulfill the need of electric power and natural gas. In which, most of the electric power came from hydroelectricity in Canada. The main mission of the company is to provide low cost hydroelectric power to the people of Manitoba province, and enable the hydroelectric board to fulfill the power consumption needs of electrical energy. Which in turn, allowed the company to serve 567,634 electric customers throughout Manitoba, and being recognized as one of the provinces major power utility.(Hydro, n.d.)

b)    What Budgetary Constraints confront the organization?

1.     What are the sources of Revenue for this company?

The main sources of revenues for Manitoba Hydro Company came from its production and utilization of electric energy from Hydro power plants, and natural gas by the customers available in the market. In which, the company was responsible for serving 567,634 electric consumers and 274,858 natural gas consumers to provided natural gas to over 100 communities. Furthermore, it also earned its revenues by exporting electricity to electric utilities with three wholesale market in Canada and the Western United States. It also provides a wide variety energy services to its customers, which contributed towards increase in their total revenues earned. Moreover, it produced its electricity by using self-renewing water power station, which decreased the cost incurred to produce its products.In turn, further increase its revenues stream. Therefore, it can be evaluated that through its efficient production process it is minimizing the cost, and in turn increasing its revenues stream. The company was able to generate enough financial resources and cash flows to pay for its operating expenditure incurred on a daily basis. Additionally, fulfill its capital expenditure requirements, which was necessary for the future growth of the company in the market. It also helps to expand its current production capacity to fulfill the ever increasing demand of the customers in the future.(Hydro, Official Site, n.d.)

2.      What Changes had occurred in the Organization’s budget in recent years?

Currently the Manitoba’s consolidated income statements had shown a net loss amounting to $48 million in the first three month of 2016-2017 fiscal year. It can be assessed that this net loss is significant higher than the net loss shown for the same period in last year at $16 million. However, the significant increase in the net loss could be attributed to increased expenses incurred by the company, and low extra provincial revenues generated by them in the market. Furthermore, it can be assessed that its electricity segment suffered a net loss of $42 million, $8 million loss was incurred in its natural gas segment. On the other hand, there was a net profit in its other segments shown in its consolidated income statement amounting to $2 million..............

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