Toronto Hydro Corporation Reports its Year-End Financial Results for 2019
TORONTO, March 27, 2020 /CNW/ - Toronto Hydro Corporation (the "Corporation") today announced its consolidated financial and operating results for the year ended December 31, 2019.
Net income after net movements in regulatory balances for the year ended December 31, 2019, was $154.4 million compared to $167.3 million for the comparable period in 2018. The decrease over the previous year was primarily due to higher depreciation, finance costs and amounts deferred into regulatory accounts for future refund to customers, partially offset by higher 2019 distribution revenue.
The Corporation continues to invest in the grid to address safety and reliability, support a growing city, and meet customer service needs.
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 torontohydro.com or through SEDAR's website sedar.com.
On December 19, 2019, the Ontario Energy Board (OEB) issued a Decision and Order approving Toronto Hydro Electric-System Limited's 2020-2024 electricity distribution rate application and investment plan. On February 20, 2020, the OEB issued the Final Rate Order approving a new Tariff of Rates and Charges, which were implemented on March 1, 2020.
Effective March 5, 2020, the following directors were re-appointed to the Board of the Corporation for a term of office ending March 5, 2022, each continuing to serve until a respective successor director is appointed: David McFadden (as Chair of the Board), Tamara Kronis, Juliana Lam, Michael Nobrega, Mary Ellen Richardson, Howard Wetston and Heather Zordel. Brian Chu resigned from the Board effective March 5, 2020.
On March 27, 2020, the Board of Directors of the Corporation declared dividends in the amount of $25.0 million with respect to the first quarter of 2020, which is payable to the City of Toronto by March 31, 2020.
ABOUT TORONTO HYDRO
The Corporation is a holding company which wholly owns two subsidiaries:
- Toronto Hydro-Electric System Limited (THESL) – distributes electricity; 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. Recognized as a Sustainable Electricity Company™ by the Canadian Electricity Association, it has approximately 778,000 customers located in the City of Toronto and distributes approximately 18% of the electricity consumed in Ontario.
SOCIAL MEDIA ACCOUNTS
Twitter – twitter.com/torontohydro
Facebook – facebook.com/torontohydro
YouTube – youtube.com/torontohydro
Instagram – instagram.com/torontohydro
LinkedIn – linkedin.com/company/toronto-hydro
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. Specific forward-looking information included in this news release includes, but is not limited to, payment of dividends to the City of Toronto as shareholder.
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