Proposal makes needed investment in grid to help enhance reliability
TORONTO, July 31, 2014 /CNW/ - Today, Toronto Hydro-Electric System Limited (Toronto Hydro) submitted a five-year rate application for significant investment into Toronto's aging electricity grid. The plan calls for $4 billion in funding for increased maintenance, operational support and much-needed investments into the system to replace aging assets, meet growing demand, help improve reliability and safeguard against extreme weather events.
This five-year rate application is comprehensive — comprised of over 5,000 pages of evidence validated by external experts — and outlines major projects across Toronto.
"We've developed a five-year plan to make strategic investments into our aging grid, with a focus on strengthening the grid and improving reliability," said Anthony Haines, President and CEO, noting that a significant amount of the grid is past its life expectancy and needs to be replaced for customers.
"It's a long-term plan to invest in the grid gradually to spread out costs and ease rate pressures. We're focused on delivering value-for-money to customers and making planned, strategic investments."
Subject to approval by the Ontario Energy Board (OEB), the proposal is expected to increase the total bill for residential customers by an average of less than three per cent— or approximately $3.54 per month for the average household — for each of the next five years. For 2015, the plan calls for a rate increase of just over 2.5 per cent, or $3.10 per month for the average household.
The application and executive summary has been submitted to the OEB and will be available on the Toronto Hydro website by 4 p.m. tomorrow.
The Corporation includes forward-looking information in its news release within the meaning of applicable securities laws in Canada ("forward-looking information"). The purpose of the forward-looking information is to provide management's expectations regarding the Corporation's future results of operations, performance, business prospects and opportunities and may not be appropriate for other purposes. All forward-looking information is given pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. The words "expected", "seek", and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. The forward-looking information reflects management's current beliefs and is based on information currently available to the Corporation's management.
The forward-looking information in the news release includes, but is not limited to, statements regarding the Corporation's plans and expectations regarding future rate applications and the expected capital expenditures required to complete Copeland Station. The statements that make up the forward-looking information are based on assumptions that include, but are not limited to, the future course of the economy and financial markets, the receipt of applicable regulatory approvals and requested rate orders, the level of interest rates and the Corporation's ability to borrow.
The forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. The factors which could cause results or events to differ from current expectations include, but are not limited to, market liquidity and the quality of the underlying assets and financial instruments, the timing and extent of changes in prevailing interest rates, inflation levels, legislative, judicial and regulatory developments that could affect revenues and the results of borrowing efforts.
All forward-looking information in the news release is qualified in its entirety by the above cautionary statements and, except as required by law, the Corporation undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date hereof.
About Toronto Hydro
Toronto Hydro-Electric System Limited owns and operates an electricity distribution system, which delivers electricity to approximately 733,000 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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SOURCE: Toronto Hydro Corporation
For further information: Tanya Bruckmueller, Toronto Hydro-Electric System Limited, email@example.com, W: 416-542-2621, C: 416-903-0440