Toronto Hydro Corporation Releases its 2009 Audited Financial Statements and
Related MD&A

    
    -------------------------------------------------------------------------
                           Year Ended December 31
                           in millions of dollars
    -------------------------------------------------------------------------
                                                          2009          2008
                                                          ----          ----
    Net Income                                           $42.1        $169.0
    Net Income from Continuing Operations                $42.8         $46.0
    Net Revenues                                        $508.0        $495.8
    -------------------------------------------------------------------------
    

TORONTO, March 8 /CNW/ - Toronto Hydro Corporation (the "Corporation") announced today that it has filed with Canadian security regulators its audited Consolidated Financial Statements and related MD&A for the year ended December 31, 2009. Copies may be obtained from the Corporation or accessed through www.sedar.com.

    
    -   Net income was $42.1 million in 2009 compared with $169.0 million in
        2008.

    -   Net revenues were slightly higher at $508.0 million compared to
        $495.8 million in 2008.
    

"Despite a weak economy, we had a steady financial year. On the operations front, we had a record year in delivering our capital construction program to renew our distribution system, improve customer service and create jobs. We continue to lead North American utilities with our time-of-use rates implementation, and our conservation and demand management programs continue to be among the best in Canada", said Anthony Haines, President and Chief Executive Officer.

Financial Highlights

Net income was $42.1 million in 2009, compared to $169.0 million in 2008. The decrease in net income was mainly due to:

    
    -   Lower income from discontinued operations relating to the sale of
        Telecom in 2008 ($123.7 million)

    -   Higher provision for PILs in 2009 ($14.0 million)


    -   Higher net interest expense ($8.2 million)

    -   Higher operating expenses ($7.5 million); and

    -   Higher depreciation expense ($6.8 million).
    

These unfavourable variances were partially offset by a lower reduction in the fair value of investments in 2009 compared to 2008 due to deteriorating in market conditions in 2008 ($21.0 million), and higher net revenues ($12.2 million) from increased distribution rates in 2009.

    
    -------------------------------------------------------------------------
                Financial Highlights, Year ended December 31;
                           in millions of dollars
    -------------------------------------------------------------------------
                                                                  Variance -
                                                                Favourable /
                                            2009          2008 (Unfavourable)
    -------------------------------------------------------------------------
    Net Income                             $42.1        $169.0       $(126.9)
    -------------------------------------------------------------------------
    Net Revenues                           508.0         495.8          12.2
    -------------------------------------------------------------------------
    Operating Expenses                     210.9         203.4          (7.5)
    -------------------------------------------------------------------------
    Depreciation & Amortization            163.0         156.2          (6.8)
    -------------------------------------------------------------------------
    Change in Fair Value of Investments     (1.0)        (22.0)         21.0
    -------------------------------------------------------------------------
    Income (Loss) from Discontinued
     Operations                             (0.7)        123.0        (123.7)
    -------------------------------------------------------------------------
    Provision for Payment in Lieu
     of Corporate Taxes                     19.7           5.7         (14.0)
    -------------------------------------------------------------------------
    Net Interest Expense                    70.6          62.4          (8.2)
    -------------------------------------------------------------------------
    

About Toronto Hydro

The Corporation is a holding company which through its principal subsidiaries:

    
    -   Toronto Hydro-Electric System Limited ("LDC") - distributes
        electricity and engages in Conservation and Demand Management
        activities; and

    -   Toronto Hydro Energy Services Inc. ("TH Energy") - provides street
        lighting services.
    

The principal business of the Corporation is the distribution of electricity by LDC. LDC owns and operates an electricity distribution system that delivers electricity to approximately 690,000 customers located in the City of Toronto.

SOURCE Toronto Hydro Corporation

For further information: For further information: Blair Peberdy, Vice-President, Marketing, Communications and Public Affairs and Chief Conservation Officer: (416) 542-2515, bpeberdy@torontohydro.com; Pankaj Sardana, VP, Treasurer and Regulatory Affairs, psardana@torontohydro.com: (416) 542-2707


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