TORONTO, March 4, 2016 /CNW/ - Toronto Hydro Corporation (the "Corporation") today announced its consolidated financial and operating results for the fourth quarter and year ended December 31, 2015.
Net income after net movements in regulatory balances for the year ended December 31, 2015, was $126.7 million compared to $111.7 million for the comparable period in 2014. The increase from 2014 was primarily due to the timing and accounting for implications of the Ontario Energy Board's (OEB) Custom Incentive Rate-setting (CIR) decision on December 29, 2015 ($54.7 million) with offsetting variance ($35.9 million) related to the timing of regulatory and revenue transactions, a positive variance in income tax expense and income tax recorded in net movements in regulatory balances ($11.3 million), and a higher gain on disposals of property, plant and equipment ($8.6 million). These variances were partially offset by higher depreciation and amortization expense ($9.4 million), higher finance costs ($9.1 million), and higher operating expenses ($6.7 million).
QUICK FACTS (year ended December 31, 2015)
- Net income after net movements in regulatory balances of $126.7 million
- Rate base of $3,232.0 million and revenue requirement of $633.1 million
- Capital expenditures of $537.2 million compared to $626.0 million for the comparable period in 2014
- During 2015, the Corporation successfully issued $200 million of senior debentures maturing in 2045 bearing a coupon of 3.55%, as well as $45 million of senior debentures maturing in 2063 bearing a coupon of 3.96%
"In 2015 we achieved a strong net income after net movements in regulatory balances of $126.7 million while making prudent investments designed to serve our customers better and improve reliability, safeguard against extreme weather events and meet growing demand. Our five-year rate decision and strong financial results provide a solid foundation for continued investment in Toronto's electricity grid and a long-term strategic plan."
- Anthony Haines, President and CEO, Toronto Hydro
For more information regarding corporate developments and comparative information, please see the Financial Backgrounder.
ABOUT TORONTO HYDRO
The Corporation is a holding company which wholly-owns two subsidiaries:
- Toronto Hydro-Electric Systems Limited (THESL) - which distributes electricity and engages in Conservation and Demand Management activities; and
- Toronto Hydro Energy Services Inc. - which provides street lighting 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 756,000 customers located in the city of Toronto. It is the largest municipal electricity distribution company in Canada and distributes approximately 19% of the electricity consumed in the province of Ontario.
SOURCE Toronto Hydro Corporation
Image with caption: "Toronto Hydro Corporation (CNW Group/Toronto Hydro Corporation)". Image available at: http://photos.newswire.ca/images/download/20160304_C2445_PHOTO_EN_635696.jpg
For further information: CONTACTS: Chris Tyrrell, Executive Vice-President and Chief Customer Care and Conservation Officer, 416-542-3143, [email protected]; Laura Foster, Interim, Chief Financial Officer, 416-542-2501, [email protected]