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Toronto Hydro 2014 CR Report_FINAL

Economic Performance, Service Reliability, Grid Investment, Conservation and Demand Management, Material Selection and Usage Corresponding GRI G4 Aspects: Economic Performance, Procurement Practices, Availability and Reliability, Demand-Side Management, Research and Development GRI General Standard Disclosures: G4-12 GRI Specific Standard Disclosures: EC1, EU10, EU28, EU29, EN32, LA14 2014 (in millions of dollars) TORONTO HYDRO 2014 CORPORATE RESPONSIBILITY REPORT 19 INTRODUCTION MATERIALITY AND STAKEHOLDER ENGAGEMENT OUR WORKFORCE SUSTAINABLE BUSINESS AND OPERATIONS OUR ENVIRONMENTAL FOOTPRINT SUPPORTING OUR COMMUNITY GOVERNANCE AND ETHICS Material Aspect for Toronto Hydro Corporation: ECONOMIC PERFORMANCE Toronto Hydro Corporation’s financial stability is integral to our success as an electrical utility. Our strong financial performance fuels our ability to execute critical infrastructure renewal and enables us to continue to deliver power to Torontonians in a safe, reliable and environmentally responsible manner. Management approach to economic performance Many facets of our operation rely on strong financial performance — from our responsibility to ratepayers to invest in renewal and maintenance work on the grid, to the employees that form our workforce. We operate in a regulated environment and must seek approval from the OEB for electricity distribution rates. The Corporation’s economic performance also allows it to fulfil an important directive within the City of Toronto’s Amended and Restated Shareholder Direction relating to Toronto Hydro Corporation (the “Shareholder Direction”) — to optimize the return on equity to the City of Toronto. G4-EC1 Economic Performance Revenues(1) Operating costs(2) Payments to providers of capitals(3) Payments to government(4) $3,318.4 $2,968 $125.8 $16.6 The above economic performance measures have been calculated as per the GRI manual definitions: (1) Revenues include energy sales, distribution revenue, other revenue, gain on disposals of property, plant and equipment, and interest income per the Corporation’s 2014 audited consolidated financial statements and accompanying notes. (2) Operating costs include operating expenses (which include employee wages and benefits and community investments) and energy purchases per the Corporation’s 2014 audited consolidated financial statements. (3) Payments to providers of capital include dividends paid to the City of Toronto and interest paid to providers of loans as per the Corporation’s 2014 audited consolidated financial statements. (4) Payments to government include income taxes paid per the Corporation’s 2014 audited consolidated financial statements and municipal property taxes paid.


Toronto Hydro 2014 CR Report_FINAL
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