Investment plan is needed to renew Toronto's aging electricity grid
TORONTO, Dec. 29, 2015 /CNW/ - Around 4 p.m. today, the Ontario Energy Board (OEB) released its decision for Toronto Hydro's 2015-2019 electricity distribution rates application.
The OEB regulates the province's electricity and natural gas sectors in the public interest, which includes setting electricity rates. Following a lengthy review — including a public process with ratepayer advocates that spanned nearly a year and a half — the OEB has approved five years of rate funding for Toronto Hydro, with some modifications to our original application.
Due to the complexity of this decision, we will now take time to review it and determine the effect it will have on our long-term plan for infrastructure improvement, and ultimately distribution rates for our customers. The next step is for the OEB to issue a final rate order, which will establish the final distribution rate impacts and effective rate dates. We estimate that this will occur within the first quarter of 2016.
Once known, Toronto Hydro will communicate any distribution rate impacts directly to its customers.
More information on our capital infrastructure plans and reliability can be found at torontohydro.com/gridinvestment.
- The rate application consisted of nearly 5,000 pages of direct evidence filed by Toronto Hydro, with a final record spanning nearly 10,000 pages
- This was the first time we submitted a five-year application under the OEB's new Custom Incentive Rate-setting process
- We have a long-term plan to invest in the grid gradually to spread out costs and ease rate pressures: Since 2006 we invested over $2 billion into the grid to improve performance and reliability
- Toronto Hydro distribution charges account for approximately 25% of a residential customer's total bill
"Toronto Hydro's electricity grid serves as the foundation for a vibrant city, enabling transformation, innovation and growth. With this application, we sought a balance between minimized rate impacts and infrastructure investment to replace aging assets, meet growing demand, help reliability and safeguard against extreme weather events.
"We appreciate the consideration the OEB has given to this application, and the certainty this five year decision gives to the company."
- Anthony Haines, President and CEO, Toronto Hydro
ABOUT TORONTO HYDRO
Toronto Hydro owns and operates an electricity distribution system, which delivers electricity to approximately 752,000 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.
FORWARD LOOKING INFORMATION
The Corporation includes forward-looking information in its news release within the meaning of applicable securities laws in Canada ("forward-looking information"). The purpose of the forward-looking information is to provide management's expectations regarding the Corporation's future results of operations, performance, business prospects and opportunities and may not be appropriate for other purposes. All forward-looking information is given pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. The words "will" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. The forward-looking information reflects management's current beliefs and is based on information currently available to the Corporation's management.
The forward-looking information in this news release includes, but is not limited to, statements regarding the Corporation's plans and expectations regarding the current rate application under the Custom Incentive Rate-setting mechanism. The statements that make up the forward-looking information are based on assumptions that include, but are not limited to the outcomes regarding the under the Custom Incentive Rate-setting mechanism.
All forward-looking information in the news release is qualified in its entirety by the above cautionary statements and, except as required by law, the Corporation undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date hereof.
SOURCE Toronto Hydro Corporation