Toronto Hydro-Electric System 'Walking the Talk'

    Utility Makes its Data Centre More Energy Efficient and Offers Customers
    an Incentive to do the Same

TORONTO, Oct. 27 /CNW/ -


Toronto Hydro-Electric System Limited ("Toronto Hydro"), through its Data Centre Incentive Program ("DCIP"), is offering customers a financial incentive to green their data centres. The utility is well into the process of virtualizing its own servers housed in the company's data centres. Since it began in 2008, 45 per cent of the utility's servers have been consolidated decreasing the space required and reducing electricity use. Stephen Walker, Director of IT Infrastructure at Toronto Hydro will be speaking on Toronto Hydro's efforts and results at the VMware Virtualization Forum 2009 today at 10 a.m. ET at the Metro Toronto Convention Centre.

"Virtualization" is a software technology that allows you to run multiple virtual machines on a single physical machine, sharing resources of that single computer across multiple environments. By reducing and consolidating data centre servers, users can minimize redundancies and become more efficient.

Growth and demand for technology are currently stretching - and projected to exceed - building and air conditioning capability in Toronto Hydro's data centres. For this project, Toronto Hydro deployed virtualization technology, along with technology from other partners, to reduce its number of physical servers. Since it began in 2008, the company has virtualized 45 per cent of the servers housed in its data centres. In addition, many of Toronto Hydro's major tier one applications and systems have been virtualized. At the completion of its virtualization project in 2010, Toronto Hydro expects to see significant energy and cost savings from virtualizing approximately 70 per cent of its servers.

In North America, the growth of electric energy consumption in data centres is increasing. Toronto Hydro's DCIP offsets the cost for more energy efficient equipment and design, helping customers cut electricity use in commercial and institutional data centres. Businesses that participate in the Toronto Hydro program could see immediate and on-going financial savings through reduced power consumption, and there could be associated environmental benefits such as reduced carbon emissions, via lower electricity usage.

DCIP, supported by the Ontario Power Authority, will provide $300 per measurable peak kilowatt reduction. Energy savings resulting from improvements in new or existing data centres will qualify for the incentives and will be based on measurable electricity reductions.

This program demonstrates Toronto Hydro's commitment to be a leader in the development and implementation of electricity conservation initiatives in Ontario. The company continues to support its customers with innovative approaches to conservation and demand management.

QUOTES - Stephen Walker, Director of IT Infrastructure, Toronto Hydro

"Toronto Hydro 'walks the talk'." Walker says the company is seeing good results so far and should encourage other businesses to take advantage of its DCIP. "The program is not only attractive from an electricity savings perspective, but the financial incentives to participate should also make it easier for our customers to get started."

"DCIP encourages data centres to improve their equipment layout designs to increase efficiency; use energy efficient products including new server and software technology, and upgrade air cooling systems to more efficient equipment," adds Walker.

Learn more about data centre improvements from Stephen Walker online at (video)


    -  DCIP is for commercial and institutional customers such as schools
       and hospitals.

    -  The average data centre consumes 10 to 100 times more energy/sq/ft
       than a typical office building.*

    -  Ninety per cent of companies running large data centres need to build
       more power and cooling in the next 30 months.*

    -  DCIP will offer customers several potential benefits, such as:

       -  Ongoing savings of approximately $876/measurable peak kW reduction
          on electricity bills each year(+)

       -  Operating cost savings and cost avoidance with more efficient
          equipment & design

       -  Smaller equipment footprint, maximized electrical & IT capacity,
          improved reliability & manageability

       -  One-time incentive payment in year one reduces total investment

       -  Simple measurement & verification process provides vital project
          information at no cost

    -  In 2008, Toronto Hydro removed approximately 28 MW from the grid with
       its portfolio of conservation and demand management programs. In
       total, that's enough homes to power a town the size of Grimsby. Since
       launching its programs in 2005, Toronto Hydro has removed more than
       387 MW from the grid.


Toronto Hydro-Electric System Limited is the regulated "wires" affiliate and is one of the largest municipal electric distribution utilities in Canada, delivering electricity to a broadly diverse, economically robust, residential, commercial and industrial customer base in the City of Toronto. The utility serves more than 688,000 customers.

Certain portions of this press release may constitute forward-looking information. Forward-looking information means disclosure regarding possible events, conditions or results that is based on assumptions about future economic conditions and courses of action or attributable to third parties. In some cases, forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "anticipate", "believe", "estimate", "predict", "potential", "continue", "plan" and similar expressions or the negative of these terms or other comparable terminology. Although the Corporation believes that it has a reasonable basis for the forward-looking information included in the press release, such information is subject to a number of risks, uncertainties and assumptions that may cause actual events, conditions or results to differ materially from those contemplated by the forward-looking information. Some of the factors that could cause such differences include legislative or regulatory developments; financial market conditions, general economic conditions and the ratings assigned to the corporation or its affiliates or their debt securities by rating agencies. The corporation has no obligation nor any intention to update publicly or to revise any of the forward-looking information included in the press release after the date thereof, whether as a result of new information, future events or circumstances or otherwise.

    * Mckinsey & Company/The Uptime Institute - July 2008

    (+) Based on removing one kilowatt running 8,760 hours/year (8,760 kWh)
        multiplied by an all in electricity cost of $0.1/kWh.

SOURCE Toronto Hydro Corporation

For further information: For further information: Tanya Bruckmueller, Toronto Hydro,, W: (416) 542-2621, C: (416) 903-0440; Gillian Earle, Toronto Hydro,, W: (416) 542-2571, C: (416) 903-3529; For further information on the DCIP program: Michael Pardal, Toronto Hydro,, W: (416) 542-3062

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