Toronto Hydro Corporation Releases its First Quarter Financial Statements and
Related MD&A

    
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                         Three Months ended March 31
                      in millions of dollars, unaudited
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                                                        2010        2009
                                                        ----        ----
    Net Income                                         $12.6        $7.0
    Net Revenues                                      $127.8      $124.5
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TORONTO, May 27 /CNW/ - Toronto Hydro Corporation (the "Corporation") announced today that it has filed with Canadian security regulators its financial statements and related MD&A for the three months ended March 31, 2010. Copies may be obtained from the Corporation or accessed through www.sedar.com.

    
    -   Net income was $12.6 million for the three months ended March 31,
        2010 compared with $7.0 million for the same period in 2009.
    -   Net revenues were slightly higher at $127.80 million compared to
        $124.5 million for the same period in 2009.

    Financial Highlights

    Net income was $12.6 million for the three months ended March 31, 2010,
compared to $7.0 million for the same period in 2009. The increase in net
income was mainly due to:

    -   Lower operating expenses ($5.0 million) due to contact voltage costs
        incurred in 2009;
    -   Higher net revenues ($3.3 million) from higher regulated revenues;
    -   Lower depreciation expense ($1.0 million); and
    -   Lower net interest expense ($0.8 million).

    These favourable variances were partially offset by higher provision for
payment in lieu of taxes ($2.4 million) due to higher earnings before tax in
2010.

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                             Financial Highlights
                         Three months ended March 31
                           in millions of dollars
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                                                                 Variance -
                                                                Favourable /
                                            2010          2009 (Unfavourable)
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    Net Income                             $12.6          $7.0          $5.6
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    Net Revenues                           127.8         124.5           3.3
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    Operating Expenses                      53.8          58.8           5.0
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    Depreciation and Amortization           39.7          40.7           1.0
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    Change in Fair Value of Investments        -          (2.1)          2.1
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    Provision for Payment in Lieu of
     Corporate Taxes                         5.1           2.7          (2.4)
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    Net Interest Expense                    16.6          17.4           0.8
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    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.- 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 695,000 customers located in the City of Toronto.

For further information: Blair Peberdy, Vice-President, Marketing, Communications and Public Affairs and Chief Conservation Officer, [phone], [email protected]; Pankaj Sardana, VP, Treasurer and Regulatory Affairs, [email protected], [phone]