Toronto Hydro Corporation Reports its Second Quarter Financial Results for 2016

TORONTO, Aug. 18, 2016 /CNW/ - Toronto Hydro Corporation (the Corporation) today announced its consolidated financial and operating results for the second quarter ended June 30, 2016.

Net income after net movements in regulatory balances and other comprehensive income for the six months ended June 30, 2016, was $75.5 million compared to $32.4 million for the comparable period in 2015. The increase from 2015 was primarily due to implementation of electricity rates as per the Ontario Energy Board (OEB) Custom Incentive Rate-setting (CIR) decision and rate order ($56.3 million), partially offset by higher depreciation and amortization ($15.1 million).  

QUICK FACTS (six months ended June 30, 2016)

• Net income after net movements in regulatory balances and other comprehensive income of $75.5 million
• Capital expenditures of $266.9 million compared to $260.7 million for the comparable period in 2015
• On June 14, 2016, the Corporation issued $200.0 million of 2.52% senior unsecured debentures due August 25, 2026
• On July 28, 2016, the OEB approved a settlement proposal submitted by Toronto Hydro-Electric System Limited and intervenors to the Incremental Capital Module (ICM) rate application, which provided that there would be no change to the 2015–2019 rate base previously approved in the CIR decision and the 2012-2014 ICM process would be closed with no future disposition to or from ratepayers 

QUOTE
"The OEB's decision on our 2015 to 2019 rates application is having a positive effect on our business, including our financial performance.  Our second quarter results are strong, and we are continuing to make important investments in our infrastructure."
-       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 System Limited (THESL) – which distributes electricity and engages in Conservation and Demand Management activities
• Toronto Hydro Energy Services Inc. – which provides streetlighting 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 758,000 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.

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FINANCIAL BACKGROUNDER

Key Financial Highlights (in millions of Canadian dollars)
		Three Months Ended June 30								Six Months Ended June 30
		2016 $				2015 $				2016 $	2015 $
Net income after net movements in regulatory balances and
	other comprehensive income	31.2				15.9				75.5	32.4
Capital expenditures		133.0				151.7				266.9	260.7

CORPORATE DEVELOPMENTS

On June 14, 2016, the Corporation issued $200.0 million of 2.52% senior unsecured debentures at a price of $999.84 per $1,000 principal amount due August 25, 2026 (Series12).  The Series 12 debentures bear interest payable semi-annually in arrears and contain covenants which, subject to certain exceptions, restrict the ability of the Corporation and THESL to create security interests, incur additional indebtedness or dispose of all or substantially all of their assets.  The Corporation may redeem all or part of the Series 12 debentures prior to maturity at a price equal to the greater of the Canada Yield Price (determined in accordance with the terms of the debentures) and par, plus accrued and unpaid interest to the date fixed for redemption.  Net proceeds from the debentures were used to repay certain existing indebtedness of the Corporation and for general corporate purposes.

On July 28, 2016, the OEB approved a settlement proposal submitted by LDC and intervenors to the ICM rate application, which provided that there would be no change to the 2015–2019 rate base previously approved in the CIR decision and the 2012-2014 ICM process would be closed with no future disposition to or from ratepayers. 

SOURCE Toronto Hydro Corporation

Image with caption: "Toronto Hydro Corporation's second quarter results. (CNW Group/Toronto Hydro Corporation)". Image available at: http://photos.newswire.ca/images/download/20160818_C1324_PHOTO_EN_755742.jpg

Tori Gass, Communications and Public Relations, 416-903-4037, [email protected]; 24-hours media line: 416-903-6845, [email protected]