TORONTO, Nov. 23, 2017 /CNW/ - Toronto Hydro Corporation ("the Corporation") today announced its consolidated financial and operating results for the three and nine months ended September 30, 2017.
Net income after net movements in regulatory balances for the nine months ended September 30, 2017 was $121.4 million compared to $128.0 million for the comparable period in 2016. The decrease over the previous year was primarily due to lower electricity consumption in 2017, higher operating expenses, depreciation and amortization, and a one-time Incremental Capital Module regulatory balance booked as an increase in net income in 2016. This decrease was partially offset by higher 2017 electricity distribution rates and higher other revenue related to the achievement of the Conservation and Demand Management ("CDM") mid-term incentive.
Selected Financial Highlights
(Millions of Canadian dollars)
Three Months Ended
Nine Months Ended
Net income after net movements in regulatory balances
The unaudited condensed interim consolidated financial statements and related Management Discussion and Analysis (presented in Canadian Dollars) are available on the Corporation's website torontohydro.com or through SEDAR's website sedar.com.
QUOTE "Toronto Hydro continues to show financial strength, despite lower energy consumption due to a cooler than normal summer. And our conservation efforts are paying off, as this quarter saw us hit a major energy-saving target three months ahead of schedule." - Anthony Haines, President and CEO, Toronto Hydro
CORPORATE DEVELOPMENTS On November 14, 2017, the Corporation issued $200.0 million of 3.485% senior unsecured debentures due February 28, 2048. The net proceeds will be used to repay certain existing indebtedness including the Corporation's Series 2 debentures, which matured on November 14, 2017, and for general corporate purposes.
Under the Energy Conservation Agreement (ECA) with the Independent Electricity System Operator, the Corporation has a joint CDM plan with Oakville Hydro Electricity Distribution Inc. for the delivery of CDM programs over the 2015-2020 period. The joint CDM plan provides combined funding of approximately $425.0 million, including participant incentives and program administration costs, with an energy savings target of approximately 1,668 GWh. Under the terms of the ECA, the Corporation is entitled to a performance incentive if the verified mid-term electricity savings target is achieved by December 31, 2017. As at September 30, 2017, the Corporation exceeded the mid-term energy savings target and recognized a performance incentive of $11.5 million.
ABOUT TORONTO HYDRO The Corporation is a holding company which wholly owns two subsidiaries:
Toronto Hydro-Electric System Limited (THESL) – distributes electricity and engages in conservation and demand management activities; and
Toronto Hydro Energy Services Inc. – provides street lighting and expressway 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 the electricity distribution system for Canada's largest city. A leader in conservation and demand management, it has 766,000 customers located in the city of Toronto and distributes approximately 20% of the electricity consumed in Ontario.
Toronto Hydro Corporation is a holding company which wholly owns two subsidiaries: Toronto Hydro-Electric System Limited (THESL) — which distributes electricity; and Toronto Hydro Energy Services Inc. — which provides streetlighting and expressway lighting services in the...