Toronto Hydro Corporation Reports its Year-End Financial Results for 2018
TORONTO, March 6, 2019 /CNW/ - Toronto Hydro Corporation (the "Corporation") today announced its consolidated financial and operating results for the year ended December 31, 2018.
Net income after net movements in regulatory balances for the year ended December 31, 2018, was $167.3 million compared to $156.5 million for the comparable period in 2017. The increase over the previous year was primarily due to higher electricity distribution rates and consumption. This increase was partially offset by higher operating expenses due to emergency power restoration following severe storms in 2018, higher depreciation and a provision for future refunds to customers.
The Corporation continues to invest in the grid to address safety, reliability, support a growing city and meet customer service needs.
Selected Financial Highlights
Net income after net movements in regulatory balance
1 In 2018, distribution revenue included a $102.2 million reduction for approved rate riders from customer bills
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.
"We continue to make infrastructure investments for the benefit of our customers to help maintain the safety and reliability of the system, power a growing city, and support grid resiliency. We achieved strong operational and financial results in 2018, despite the significant effect of a number of extreme weather events."
— Anthony Haines, President and CEO
On December 13, 2018, the OEB issued a decision and rate order approving THESL's 2019 rates and providing for other deferral and variance account dispositions.
On March 6, 2019, the Board of Directors of the Corporation declared dividends in the amount of $25.1 million with respect to the first quarter of 2019, which is payable to the City of Toronto by March 31, 2019.
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 772,000 customers located in the City of Toronto and distributes approximately 19% of the electricity consumed in Ontario.
Certain information included in this news release constitutes "forward-looking information" within the meaning of applicable securities legislation. The purpose of the forward-looking information is to provide management's expectations regarding the Corporation's future results of operations, performance, business prospects and opportunities and may not be appropriate for other purposes. All forward-looking information is given pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. The words "can", "could", "will" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. The forward-looking information reflects management's current beliefs and is based on information currently available to the Corporation's management.
The 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 the Corporation's capital and maintenance programs necessary to maintain the performance of our distribution assets and make required infrastructure improvements; risks associated with electricity industry regulatory developments and other governmental policy changes; risks associated with the timing and results of regulatory decisions regarding the Corporation's revenue requirements, cost recovery and rates; risk that the Corporation is not able to arrange sufficient and cost-effective debt financing to fund capital expenditures and other obligations; and risk of downgrades to the Corporation's credit rating.
All forward-looking information in the news release is qualified in its entirety by the above cautionary statements and, except as required by law, the Corporation undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date hereof.
SOURCE Toronto Hydro Corporation