Toronto Hydro Corporation Reports its year-end Financial Results for 2017
TORONTO, March 7, 2018 /CNW/ - Toronto Hydro Corporation ("the Corporation") today announced its consolidated financial and operating results for the year ended December 31, 2017.
Net income after net movements in regulatory balances for the year ended December 31, 2017 was $156.5 million compared to $151.4 million for the comparable period in 2016. The increase over the previous year was partly due to higher other revenue related to the recognition of the Conservation and Demand Management ("CDM") mid-term incentive and pole and duct rentals, and the implementation of new electricity distribution rates. This increase was partially offset by lower electricity consumption in 2017 due to a cooler than normal summer, higher operating expenses, depreciation and amortization, and a one-time Incremental Capital Module regulatory balance recorded as an increase in net income in 2016.
Selected Financial Highlights
Net income after net movements in regulatory balances
The audited consolidated financial statements and related Management's Discussion and Analysis (presented in Canadian Dollars) are available on the Corporation's website www.torontohydro.com or through SEDAR's website www.sedar.com.
"Our strong 2017 results are a reflection of our commitment to customer service and operational excellence. It's great to see our customers are saving energy through our Conservation and Demand Management programs, and also helping Toronto Hydro exceed its provincial conservation target and earn a performance incentive. We continue to invest in infrastructure to help improve reliability for our customers."
- Anthony Haines, President and CEO, Toronto Hydro
On December 14, 2017, the Ontario Energy Board issued a decision and rate order approving Toronto Hydro-Electric System Limited's 2018 rates, with an effective date of January 1, 2018, and the disposition of certain deferral and variance accounts.
Under the energy conservation agreement with the Independent Electricity System Operator, the Corporation has a joint CDM plan with Oakville Hydro Electricity Distribution Inc. for the delivery of CDM programs over the 2015-2020 period. The joint CDM plan provides combined funding of approximately $421.0 million, including participant incentives and program administration costs, with an energy savings target of approximately 1,648 GWh. The Corporation is entitled to an incentive if the verified mid-term electricity savings target is achieved by December 31, 2017. As at December 31, 2017, the Corporation exceeded the mid-term energy savings target and achieved 814 GWh of energy savings and recognized its portion of the incentive in the amount of $12.2 million.
On March 7, 2018, the Board of Directors of the Corporation declared a quarterly dividend in the amount of $23.475 million, payable to the City of Toronto by March 31, 2018.
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; and
- Toronto Hydro Energy Services Inc. – provides street lighting and expressway 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 the electricity distribution system for Canada's largest city. A leader in conservation and demand management, it has 768,000 customers located in the city of Toronto and distributes approximately 19% of the electricity consumed in Ontario.
SOURCE Toronto Hydro Corporation