Toronto Hydro Reports First Quarter Financial Results of 2024

Toronto, May 8, 2024 /CNW/ – Toronto Hydro Corporation (Toronto Hydro) announces financial and operating results for the ended first quarter. March 31, 2024.

Key financial highlights

Distribution income is $225.2 million

• increase of $23.9 million Comparison with the same period last year.

• This increase was driven by revenue increases approved by the Ontario Energy Board. Rate the rider The distribution rate will increase in 2024, but this will be partially offset by lower electricity consumption.

Net income after net changes in regulatory balances is $33.9 million

• decrease in $10.1 million Comparison with the same period last year.

• This decrease was primarily due to a decrease in other income related to variable consideration recognized in the prior period, as well as higher financing costs, higher operating expenses, and higher depreciation expense.

• This was partially offset by higher distribution revenues and lower deferrals to regulatory accounts.

The amount of capital investment is $199.5 million

• increase of $43.3 million Comparison with the same period last year.

• Capital initiatives in 2024 include providing customer connectivity and replacing overhead and underground infrastructure and station programs.

corporate development

upon March 28thS&P Global Ratings announced its decision to maintain Toronto Hydro's Issuer Credit Rating and Senior Unsecured Rating at 'A' and revised its outlook to 'Stable' from 'Developing'.

upon April 25thDBRS confirmed that Toronto Hydro's issuer and corporate debt ratings are stable at 'A' and its commercial paper rating at R-1 (low).

upon May 8ththe Toronto Hydro Board of Directors has declared dividends in the following amounts: $21 million Regarding the second quarter of 2024, city ​​of toronto by June 28, 2024.

simple facts

• Toronto Hydro's financial and operating results are reported quarterly and are available at: torontohydro.com/reports and through it sedarplus.ca

• Toronto Hydro must submit its proposed rate and spending plans to the Ontario Energy Board through an open and transparent process. Charges apply

• Toronto Hydro continues to invest in its power grid to keep it safe and reliable, support a growing city, deliver clean energy, and prepare for and respond to extreme weather events.Learn more about torontohydro.com/investmentplan

story continues

Quote

“Toronto Hydro continues to invest in expanding, modernizing and maintaining a safe and reliable electric grid infrastructure to meet the current and future power needs of homes, businesses and institutions. Toronto, and preparing the grid and its operations to meet urban growth and net-zero goals. We are proud of the work we accomplished this quarter and look forward to continuing to support our customers and our rapidly growing city. ”

– Anthony HaynesPresident and CEO, Toronto Hydro

about Toronto hydro

Toronto Hydro is a holding company that wholly owns two subsidiary companies.

• Toronto Hydro-Electric System Limited (THESL) – distributes electricity.and

• Toronto Hydro Energy Services Inc. – Provides street and highway lighting services for the City of Toronto. Toronto

The primary business of Toronto Hydro and its subsidiaries is the distribution of electricity through THESL, which owns and operates Toronto Hydro's distribution system. Canada's the biggest city. Recognized as a Sustainable Electrical Leader™ by the Canadian Electricity Agency, we serve approximately 794,000 customers within Canada. Toronto It distributes about 17 percent of the electricity consumed in the Ontario.

social media accounts

X: x.com/Toronto Hydro
Instagram: instagram.com/Toronto Hydro
Facebook: facebook.com/Toronto Hydro
YouTube: youtube.com/Toronto Hydro
LinkedIn: linkedin.com/company/toronto-hydr

Forward-looking information

Certain information contained in this news release constitutes “forward-looking information” within the meaning of applicable securities laws. All information, other than statements of historical fact, that concerns activities, events or developments that may occur or are anticipated by the Company in the future is forward-looking information. “anticipate”, “believe”, “budget”, “can”, “promise”, “continue”, “could”, “estimate”, “expect”, “focus”, “predict” ”, the words “further notice”, “future”, “impact”, “increasingly”, “intends”, “may”, “may”, “once”, “plans”, “propose”, “project”, “schedule”, “seek”, “should”, “tend”, “would”, “will”, “will”, “propose”, “propose”, “propose”, “schedule”, “seek”, “propose”, “tend”, “will”, “will” ”, “objective”, “ongoing”, “outlook” or negative or other variations of these words, or other equivalent words or phrases, provided that all forward-looking information does not contain these identifying words. It is not included. The purpose of the forward-looking information (including financial outlook) contained herein is to provide current expectations regarding Toronto Hydro's future business results, performance, business prospects and opportunities, and readers should not Please note that the information may not be suitable for other purposes. . All forward-looking information is provided pursuant to the “safe harbor” provisions of applicable Canadian securities laws.

Specific forward-looking information in this news release includes, without limitation, statements regarding: Settlement differences and other regulatory balance differences. Planned capital expenditures include underground and overhead infrastructure replacement, station programs, customer connectivity provision, and customer-driven plant relocation and expansion. Toronto Hydro's future results of operations and financial condition due to uncertain economic factors, including macroeconomic factors and local market factors such as inflationary pressures, rising interest cost environments, uncertain customer spending levels, and the global recession; impact on. Toronto Hydro's reliance on debt financing through the MTN program, commercial paper program or existing credit facilities to finance its day-to-day operations, repay existing debt and finance capital expenditures; Toronto Hydro's continued ability to arrange sufficient and cost-effective debt financing to meet its short-term and long-term obligations; the impact on Toronto Hydro's financial health and operating results of changes in economic, policy, customer preferences and technical conditions that reduce demand for electricity; The effect of changes in interest rates and discount rates on future earnings requirements and future retirement benefit obligations, respectively.

Forward-looking information reflects Toronto Hydro's current beliefs and is based on information currently available to Toronto Hydro. Forward-looking information is based on Toronto Hydro's management's understanding of past experience and historical trends, current conditions, expected future developments and other factors that management believes are reasonable in the circumstances. They are based on estimates and assumptions made based on factors. , but not limited to: the amount of Toronto Hydro's indebtedness, changes in financing requirements, the future course of the economy and financial markets, the existence of unanticipated delays and costs in Toronto Hydro's capital projects, the existence of unanticipated changes in project plans, and the terms and conditions of the terms and conditions; compliance, receipt of favorable judgments, no unanticipated changes in distribution rate orders or pricing methodologies, no adverse changes in environmental regulations, ratings issued by credit rating agencies, level of interest rates, Toronto Hydro; the Company's borrowing capacity and general assumptions business and economic conditions;

Forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or from those anticipated by the forward-looking information. Factors that could cause results or events to differ from current expectations include the implementation of LDC's capital and maintenance programs necessary to maintain the performance of aging distribution assets and make necessary infrastructure improvements; The associated risks include, but are not limited to: Meeting modernized grid and electrification requirements to achieve the government's net-zero greenhouse gas emissions target. risks associated with capital projects; Risks related to changes in weather patterns due to climate change and the resulting impact on electricity consumption, based on historical seasonal trends. Risks of City Government Activities. This includes regulations, policies, including those related to net-zero greenhouse gas emissions targets, that could limit Toronto Hydro's ability to achieve its business objectives as set out in the Shareholder Direction Principles; or the risk that the city may introduce a directive. ; the risk of not being able to maintain the necessary qualified external contracting force associated with capital, maintenance and reactive infrastructure programs; the risk that Toronto Hydro will be unable to arrange sufficient and cost-effective debt financing to repay maturing debt and fund capital expenditures and other obligations; the risk that Toronto Hydro may not be able to maintain its financial health and operating results at an acceptable level; the risk that available debt or equity financing will be insufficient to meet Toronto Hydro's requirements, objectives or strategic opportunities; the risk that Toronto Hydro's credit rating may be downgraded; risks related to the timing and extent of changes in prevailing interest rates and discount rates and the impact on future earnings requirements and future retirement benefit obligations; risks arising from inflation, the direction of the economy and other general macroeconomic factors; risks associated with a decline in Toronto Hydro's image, public trust or brand in the community; risks related to Toronto Hydro's failure to meet material regulatory compliance obligations;

The Company cautions readers that the above list of factors is not exhaustive and there may be other factors that cause actual events or results to differ materially from those described in the forward-looking information. warn you. Some of the other factors are further described under the heading “Risk Factors” in Toronto Hydro's year-end information form. December 31, 2023.

All forward-looking information contained in this document is qualified in its entirety by the cautionary statements set out above. Additionally, unless otherwise indicated, all forward-looking information contained herein is made as of the date hereof and, unless otherwise indicated, Toronto Hydro does not intend to make any changes as a result of new information, future events or otherwise. We undertake no obligation to revise or update forward-looking information. By law.

SOURCE Toronto Hydro Corporation

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