Enmax Dividend Sees Sharp Decline in 2025 Annual Report
Enmax, the municipally owned electricity provider, delivered a dividend of $64 million to the City of Calgary in 2025, according to its latest annual report. This marks a steep drop from the record $103 million paid out in 2024, which was the first time the dividend exceeded nine figures. The 2025 figure represents a decrease of nearly $40 million, or approximately 38%, compared to the previous year.
Historical Context and New Dividend Policy
In 2024, Enmax's dividend reached an unprecedented $103 million, following $95 million in 2023. However, the 2025 amount returns to levels more typical of the past decade, such as the $62 million delivered in 2021. Enmax CEO Mark Poweska attributed the decline to a new dividend policy approved by the company's board in 2024. This policy incorporates a 10-year average into the calculation, moving away from the previous approach that mandated at least $30 million or 30% of comparable net earnings, whichever was higher.
Poweska explained that the change aims to ensure a healthy balance sheet for Enmax while providing cash for investments in Calgary's growing infrastructure. He noted that the city is experiencing connections at about 2.5 times the historic average, necessitating reliable power for future generations. The new policy is expected to offer more stability and predictability for the city's budgeting, avoiding volatile swings tied to market prices.
Mayor's Response and Broader Implications
Despite the dividend drop, Calgary's mayor reiterated recent comments that the city should consider selling off one of Enmax's subsidiaries to address infrastructure funding challenges. This suggestion comes amid ongoing discussions about municipal finance and resource allocation. At the audit committee meeting where the report was presented, councillor John Pantazopoulos supported the new policy, emphasizing the importance of stability over unpredictable fluctuations.
Poweska clarified that changes to the city's local access fee formula, implemented in 2025, did not impact the lower dividend. Enmax Power remits franchise fees to the city, which do not affect the corporation's net earnings. The focus remains on reinvesting retained earnings into infrastructure to support long-term reliability.
The 2025 dividend decline highlights shifts in corporate strategy and municipal finance, with Enmax prioritizing sustainable growth over short-term gains. As Calgary continues to expand, the balance between dividend payouts and infrastructure investment will remain a key topic for stakeholders.
