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Toronto Hydro Corporation Reports its Third Quarter Financial Results for 2016
TORONTO, Nov. 23, 2016 /CNW/ - Toronto Hydro Corporation (the Corporation) today announced its consolidated financial and operating results for the third quarter ended September 30, 2016.
For the nine months ended September 30, 2016:
- Distribution revenue was $488.9 million
- Net income after net movements in regulatory balances and comprehensive income was $128.0 million
- Capital expenditures were $402.5 million
Net income increased over the previous year due partly to higher consumption, implementation of new electricity distribution rates and resolution of the clearance and closure of deferral and variance accounts related to a prior period. Partially offsetting the factors above were higher depreciation expense and amounts charged to capital-related regulatory deferral accounts.
The Corporation continues to invest heavily in renewing its aging infrastructure to address safety, reliability and customer service requirements. These investments require a flexible, balanced capital structure that is aided by reinvesting net income.
QUOTE
"Our strong third quarter results are helpful in assisting the Corporation in prioritizing infrastructure investment while easing pressures on our capital structure through the reinvestment of net income into the company."
- 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) – distributes electricity and engages in conservation and demand management activities
- Toronto Hydro Energy Services Inc. – provides street lighting 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 759,000 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
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Key Financial Highlights (in millions of Canadian dollars)
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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2016 $ |
2015 $ |
2016 $ |
2015 $ |
|
|
Distribution revenue |
183.3 |
144.4 |
488.9 |
424.1 |
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Net income after net movements in regulatory |
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balances and comprehensive income |
52.5 |
20.0 |
128.0 |
52.4 |
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Capital expenditures |
135.6 |
141.9 |
402.5 |
402.6 |
CORPORATE DEVELOPMENTS
On July 28, 2016, the OEB approved a settlement proposal submitted by THESL 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. Further to this approval, the $9.8 million previously recorded as an ICM regulatory credit balance was recorded as an increase in equity through net movements in regulatory balances in the third quarter of 2016.
SOURCE Toronto Hydro Corporation
Image with caption: "Toronto Hydro Corporation announces its third quarter financial results for the period ending September 30, 2016. (CNW Group/Toronto Hydro Corporation)". Image available at: http://photos.newswire.ca/images/download/20161123_C1809_PHOTO_EN_825380.jpg
