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

    
    -------------------------------------------------------------------------
                              Three months Ended          Nine months Ended
                                 September 30;               September 30;
                          In Millions of dollars;     In Millions of dollars;
                                   Unaudited                   Unaudited
                          ---------------------------------------------------
                              2009          2008          2009          2008
                            -------       -------       -------       -------
    Net Income               $11.8        $126.6         $33.2        $164.2
    Net Income from
     Continuing Operations   $11.8         $11.0         $33.4         $41.3
    Net Revenues            $130.0        $131.9        $378.4        $367.9
    -------------------------------------------------------------------------
    

TORONTO, Nov. 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 nine months ended September 30, 2009. Copies may be obtained from the Corporation or accessed through www.sedar.com.

    
    -  Net income for the nine months ended September 30, 2009 amounted to
       $33.2 million compared with $164.2 million for the same period in
       2008. The net income to September 30, 2008 included the recognition of
       a gain on the sale of the shares of Toronto Hydro Telecom Inc. of
       $118.6 million.

    -  Net revenues for the nine months ended September 30, 2009 were higher
       at $378.4 million compared to $367.9 million for the same period in
       2008.

    Financial Highlights

    Net income was $33.2 million for the nine months ended September 30 2009,
compared to $164.2 million for the same period in 2008. The decrease in net
income for the nine months ended September 30, 2009, was primarily due to:

    -  Lower income from discontinued operations from the sale of Telecom in
       2008 ($123.1 million);

    -  Higher operating expenses ($12.9 million);

    -  A variance in Payment in Lieu of Income Taxes ("PILs");
       ($12.3 million) from the recovery recorded in 2008 following the
       completion of the 2001 and 2002 audits by the Ministry of Revenue;

    -  Higher depreciation expense ($5.4 million) and higher net interest
       expense ($5.3 million).

    -  These unfavourable variances were partially offset by a variance in
       the fair value of investments ($17.6 million) related to an impairment
       charge recorded in 2008 due to unfavourable market conditions, and by
       higher net revenues ($10.4 million).


    Financial Highlights

    -------------------------------------------------------------------------
                             Financial Highlights
                       Nine Months ended September 30
                     (in thousands of dollars, unaudited)
    -------------------------------------------------------------------------
                                                          2009          2008
    -------------------------------------------------------------------------
    Net Income from Continuing Operations               33,415        41,308
    -------------------------------------------------------------------------
    Income (loss) from Discontinued Operations            (223)      122,884
    -------------------------------------------------------------------------
    Net Revenues                                       378,372       367,931
    -------------------------------------------------------------------------
    Operating Expenses                                 158,775       145,839
    -------------------------------------------------------------------------
    Depreciation & Amortization                        122,375       116,998
    -------------------------------------------------------------------------
    Net Interest Expense                                52,138        46,837
    -------------------------------------------------------------------------
    Change in Fair Value of Investments                 (1,049)      (18,612)
    -------------------------------------------------------------------------
    Provision for (recovery of) PILs                    10,620        (1,663)
    -------------------------------------------------------------------------

    Corporate Developments

    -  On October 1, 2009, Anthony Haines was appointed President and CEO of
       Toronto Hydro Corporation. Mr. Haines will continue as President of
       Toronto Hydro-Electric System Limited.

    -  On November 12, 2009, the Corporation issued $250.0 million in 10-year
       senior unsecured debentures which bear interest at the rate of 4.49%
       per annum and are payable semi-annually in arrears in equal
       instalments on May 12 and November 12 of each year. The notes will
       mature on November 12, 2019. The net proceeds of this issuance will be
       used principally to repay $245.1 million of indebtedness outstanding
       to the City of Toronto under the terms of the Corporation's promissory
       note with the City.

    -  On November 26, 2009, the Corporation declared dividends amounting to
       $7 million relating to the fourth quarter of 2009, payable to the City
       of Toronto on December 31, 2009.

    About Toronto Hydro

    The Corporation is a holding company which through its wholly-owned
    subsidiaries:

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

    -  Toronto Hydro Energy Services Inc. ("TH Energy") - which provides
       street lighting services and develops energy efficiency products and
       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 689,000 customers located in the City of Toronto.

SOURCE Toronto Hydro Corporation

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


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