Toronto Hydro receives decision from the Ontario Energy Board for its 2025-2029 electricity distribution rate application and investment plan

Toronto Hydro's approved plan will renew aging electrical infrastructure while meeting evolving customer needs driven by the economy, housing, and decarbonization.

TORONTO, Nov. 12, 2024 /CNW/ - Today, following a comprehensive public review process, the Ontario Energy Board (OEB) approved the settlement agreement for Toronto Hydro's 2025–2029 electricity distribution rate application and investment plan. This approval marks the successful resolution of a nearly year-long process and reflects broad support for Toronto Hydro's plan from customers and intervenors.

Toronto Hydro's five-year investment plan will enable the utility to make continued investments in expanding, modernizing, and sustaining the foundations of a safe, clean, and reliable grid to serve the current and future electricity needs of homes, businesses, and institutions in Toronto.

Consistent with forecasts by Ontario's Independent Electricity System Operator, and with evidence put before the OEB as part of its application, Toronto Hydro anticipates that customer demand for electricity will grow over the 2025–2029 term and that electricity demand in Toronto could more than double by 2050. The OEB's funding approval for the next five years provides Toronto Hydro with the predictable funding and flexibility necessary to prepare for this future cost-effectively, while continuing to address persisting local needs including deteriorating infrastructure, rapid population growth, and more frequent extreme weather and cyber threats.

Having received approval for its five-year plan, Toronto Hydro will now complete the necessary steps as part of the OEB process to translate the decision into rates that will be implemented beginning in 2025. Once the final rates are set by the OEB, Toronto Hydro will communicate these rates directly to its customers.

For more information about Toronto Hydro's 2025–2029 investment plan, please visit torontohydro.com/investmentplan.

QUICK FACTS

• Toronto Hydro distribution charges account for approximately one-third of a residential customer's total bill
• To have its rates approved, Toronto Hydro is required to submit a plan for its proposed prices (rates) and spending to the OEB, Ontario's independent energy regulator
• Toronto Hydro's rates are being set after a comprehensive public review process by the OEB over nearly 12 months, and the application consisted of a final record spanning nearly 9,200 pages
• As part of the application process, over 33,000 customers reviewed a draft version of Toronto Hydro's investment plan, and 84 per cent on average supported the plan
• Since 2010, Toronto Hydro has invested approximately $5.5 billion in the grid to renew and modernize the local electricity system, which has enabled increased performance, including improved reliability for customers

QUOTES

"We're pleased that the Ontario Energy Board has approved Toronto Hydro's plan to invest approximately $5.1 billion in our grid and operations over the next five years. These investments will allow us to continue delivering safe, reliable, and clean electricity to Torontonians, while also enabling a growing and increasingly electrified city for decades to come."

-  Jana Mosley, President and CEO, Toronto Hydro

ABOUT TORONTO HYDRO

Toronto Hydro is a holding company which wholly owns two subsidiaries:

• Toronto Hydro-Electric System Limited (THESL) – distributes electricity; and
• Toronto Hydro Energy Services Inc. – provides streetlighting and expressway lighting services in the city of Toronto

The principal business of Toronto Hydro and its subsidiaries is the distribution of electricity by THESL, which owns and operates the electricity distribution system for Canada's largest city. Recognized as a Sustainable Electricity Leader™ by Electricity Canada, it has approximately 794,000 customers located in the city of Toronto and distributes approximately 18 per cent of the electricity consumed in Ontario.

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FORWARD-LOOKING INFORMATION

Certain information included in this news release constitutes "forward-looking information" within the meaning of applicable securities legislation. All information, other than statements of historical fact, which address activities, events or developments that we expect or anticipate may or will occur in the future, are forward-looking information. The words "anticipates," "believes," "budgets," "can," "committed," "continual," "could," "estimates," "expects," "focus," "forecasts," "further notice," "future," "impact," "increasingly," "intends," "may," "might," "objective," "once," "ongoing," "outlook," "plans," "propose," "projects," "schedule," "seek," "should," "trend," "will," "would," or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking information, although not all forward-looking information contains these identifying words. The purpose of the forward-looking information (including any financial outlook) contained herein is to provide Toronto Hydro's current expectations regarding its future results of operations, performance, business prospects and opportunities, and readers are cautioned that such information may not be appropriate for other purposes. All forward-looking information is given pursuant to the "safe harbour" provisions of applicable Canadian securities legislation.

Specific forward-looking information in this news release includes, but is not limited to, statements regarding: the major areas of investments under Toronto Hydro's five-year investment plan; the size of the planned investments in Toronto Hydro's grid and operations over the next five years; local needs addressed by the investments over the next five years; anticipated growth in customer demand for electricity; the implementation of rates in accordance with the decision; and the communication of those rates by Toronto Hydro to its customers.

The forward-looking information reflects Toronto Hydro's current beliefs and is based on information currently available to Toronto Hydro. The forward-looking information is based on estimates and assumptions made by Toronto Hydro's management in light of past experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes to be reasonable in the circumstances, including, but not limited to: the amount of indebtedness of Toronto Hydro; changes in funding requirements; the future course of the economy and financial markets; no unforeseen delays and costs in Toronto Hydro's capital projects; no unforeseen changes to project plans; compliance with covenants; the receipt of favourable judgments; no unforeseen changes in electricity distribution rate orders or rate-setting methodologies; no unfavourable changes in environmental regulation; the ratings issued by credit rating agencies; the level of interest rates; Toronto Hydro's ability to borrow; and assumptions regarding general business and economic conditions.

Forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. The factors which could cause results or events to differ from current expectations include, but are not limited to: risks associated with the execution of Toronto Hydro's capital and maintenance programs necessary to maintain the performance of aging distribution assets and make required infrastructure improvements, including to deliver a modernized grid and meet electrification requirements to achieve government net-zero greenhouse gas (GHG) emissions targets; risks associated with capital projects; risks associated with changing weather patterns due to climate change and resultant impacts to electricity consumption based on historical seasonal trends; risks of changing government policy and regulatory requirements, including in respect of climate change and the energy transition; risks of municipal government activity, including the risk that the City could introduce rules, policies or directives, including those relating to net-zero GHG emissions targets, that could potentially limit Toronto Hydro's ability to meet its business objectives as laid out in its Shareholder Direction principles; risks of Toronto Hydro being unable to retain necessary qualified external contracting forces relating to its capital, maintenance and reactive infrastructure program; risk that Toronto Hydro is not able to arrange sufficient and cost-effective debt financing to repay maturing debt and to fund capital expenditures and other obligations; risk that Toronto Hydro is unable to maintain its financial health and performance at acceptable levels; risk that insufficient debt or equity financing will be available to meet Toronto Hydro's requirements, objectives or strategic opportunities; risk of downgrades to Toronto Hydro's credit rating; risks arising from inflation, the course of the economy and other general macroeconomic factors; risk associated with the impairment to Toronto Hydro's image in the community, public confidence or brand; risk associated with Toronto Hydro failing to meet its material compliance obligations under legal and regulatory instruments; and risks associated with market expectations with respect to increases in demand for electricity.

The Corporation cautions the reader that the above list of factors is not exhaustive, and there may be other factors that cause actual events or results to differ materially from those described in forward-looking information. Some of the other factors are discussed more fully under the heading "Risk Factors" in Toronto Hydro's Annual Information Form for the year ended December 31, 2023.

All forward-looking information in this document is qualified in its entirety by the above cautionary statements. Furthermore, unless otherwise stated, all forward-looking information contained herein is made as of the date hereof, and Toronto Hydro undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise, except as required by law.

SOURCE Toronto Hydro Corporation

CONTACT INFORMATION: For further information: Media and Public Relations, 416-903-6845, [email protected]