Toronto Hydro Corporation Reports its First Quarter Financial Results for 2016

TORONTO, MAY 11, 2016 /CNW/ - Toronto Hydro Corporation (the Corporation) today announced its consolidated financial and operating results for the first quarter ended March 31, 2016.

Net income after net movements in regulatory balances and other comprehensive income for the three months ended March 31, 2016, was $44.3 million compared to $16.5 million for the comparable period in 2015. The increase from 2015 was due to foregone revenue recognized for the period January 1, 2016 through February 28, 2016 pursuant to the Ontario Energy Board's (OEB) Custom Incentive Rate Setting decision on December 29, 2015 and Rate Order dated March 1, 2016 ($19.2 million), and implementation of new electricity rates as per the same Rate Order ($10.6 million).  

QUICK FACTS (three months ended March 31, 2016)

  • Net income after net movements in regulatory balances and other comprehensive income of $44.3 million
  • Capital expenditures of $133.9 million compared to $109.0 million for the comparable period in 2015
  • On April 25, 2016, Standard & Poor's announced its decision to maintain the credit rating on the Corporation as "A"
  • On April 27, 2016, DBRS announced its decision to maintain the credit rating on the Corporation as "A"

QUOTE  
"This first quarter result for 2016 shows our strong financial performance as a result of the OEB's decision on our 2015 to 2019 rates application. The OEB's decision enables greater long-term planning and allows us to make important investments in our infrastructure while balancing the impact on rates for our customers."
-       Anthony Haines, President and CEO, Toronto Hydro

For more information regarding corporate developments and comparative information, please see the Financial Backgrounder below.

ABOUT TORONTO HYDRO
The Corporation is a holding company which wholly-owns two subsidiaries:

  • Toronto Hydro-Electric System Limited (THESL) - which distributes electricity and engages in Conservation and Demand Management activities
  • Toronto Hydro Energy Services Inc. - which provides streetlighting services in the city of Toronto

The principal business of the Corporation and its subsidiaries is the distribution of electricity by THESL, which owns and operates an electricity distribution system, delivering electricity to approximately 757,000 customers located in the city of Toronto. It is the largest municipal electricity distribution company in Canada and distributes approximately 18% of the electricity consumed in the province of Ontario.

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FINANCIAL BACKGROUNDER


 

Key Financial Highlights

(in millions of Canadian dollars)

 


Three Months Ended

March 31


2016

$

2015

$




Net income after net movements in regulatory balances and




other comprehensive income

44.3

16.5

Capital expenditures

133.9

109.0




 

CORPORATE DEVELOPMENTS

On December 29, 2015, the OEB issued its Custom Incentive Rate Setting (CIR) decision and on March 1, 2016, the OEB issued its CIR rate order, both in relation to the rate application filed on July 31, 2014.  The CIR decision and rate order approved a rate base of $3,232.0 million and revenue requirement of $633.1 million for 2015, and rates calculated on that basis.  The CIR decision and rate order also approved subsequent annual rate adjustments based on a custom index for the period commencing on January 1, 2016 and ending on December 31, 2019.  The rates for 2015 and 2016 were implemented on March 1, 2016, with effective dates of May 1, 2015 and January 1, 2016, respectively.

SOURCE Toronto Hydro Corporation

Image with caption: "Toronto Hydro Corporation's first quarter results. (CNW Group/Toronto Hydro Corporation)". Image available at: http://photos.newswire.ca/images/download/20160511_C4066_PHOTO_EN_688731.jpg

For further information: Tori Gass, Communications and Public Relations, 416-903-4037, media@torontohydro.com; 24-hours media line: 416-903-6845, media@torontohydro.com

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