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Toronto Hydro to receive equity investment from City of Toronto

Shareholder approves amendment to its dividend policy

TORONTO, June 28, 2024 /CNW/ - The City of Toronto (City) and Toronto Hydro Corporation (Toronto Hydro or the Corporation) have agreed on the City making new equity investments in Toronto Hydro totalling $300 million, including a one-time upfront special equity investment of $50 million by 2025 and multi-tranche annual equity contributions of $25 million over 10 years beginning in 2025. The City of Toronto has approved these investments and supporting documents were finalized and provided to Toronto Hydro on June 28, 2024, following the meeting of City Council earlier that week.

In addition to these equity investments, City Council has also approved amendments to Toronto Hydro's Shareholder Direction, which set out targets for reduced dividends from the Corporation to the City for the period between 2025 and 2034.

These equity investments and Shareholder Direction amendments support Toronto Hydro's long-term financial stability and optimize the returns on equity to the City, strengthen the Corporation's ability to invest in the grid in line with its regulated capital structure, and help deliver on Toronto Hydro's Climate Action Plan supporting the City's Net Zero Strategy.


  • The demand for electricity is expected to increase over the coming decades due to population growth, housing intensification, transit expansion, economic development, and customers shifting away from emissions-intensive fossil fuels to largely emissions-free electricity
  • Toronto Hydro's Climate Action Plan is designed to support and enable the City's Net Zero Strategy by implementing initiatives to expand the capacity and capabilities of the local grid and to provide climate advisory services to help Toronto residents and businesses decarbonize
  • The City is sole shareholder of Toronto Hydro and sets corporate governance principles with respect to the Corporation through its Shareholder Direction


Toronto Hydro is a holding company which wholly owns two subsidiaries:

  • Toronto Hydro-Electric System Limited (THESL) – distributes electricity; and
  • Toronto Hydro Energy Services Inc. – provides streetlighting and expressway lighting services in the city of Toronto

The principal business of Toronto Hydro 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 Leader™ by Electricity Canada, it has approximately 794,000 customers located in the city of Toronto and distributes approximately 17 per cent of the electricity consumed in Ontario.


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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," "expect," "seek," "will" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words.

The specific forward-looking information included in this news release includes, but is not limited to, expectations with respect to increase in demand for electricity, receipt of the equity investments from the City of Toronto and payment of dividends to the City of Toronto as shareholder.

The forward-looking information reflects management's beliefs and is based on information currently available to the Corporation's management. The factors which could cause results or events to differ from current expectations include, but are not limited to:

  • risk that the Corporation is unable to maintain its financial health and performance at acceptable levels;
  • risk that insufficient debt or equity financing will be available to meet the Corporation's requirements, objectives or strategic opportunities;
  • risk of downgrades to the Corporation's credit rating;
  • risks related to the timing and extent of changes in prevailing interest rates and discount rates and their effect on future revenue requirements and financial obligations;
  • risks of changing government policy and regulatory requirements, including in respect of climate change and energy transition;
  • risks of adverse regulatory decisions;
  • risks associated with capital projects;
  • risks arising from inflation, the course of the economy and other general macroeconomic factors; and
  • risks associated with market expectations with respect to increase in demand for electricity

Forward-looking information is subject to risks, uncertainties and other factors, and actual results may differ materially from historical results or results anticipated by the forward-looking information. In particular, the forward-looking information contained in this news release is based on estimates and assumptions made by the Corporation's management in light of past experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes to be reasonable in the circumstances, including, but not limited to: the amount of indebtedness of the Corporation; changes in funding requirements; the future course of the economy and financial markets; no unforeseen delays and costs in the Corporation's capital projects; no unforeseen changes to project plans; no unforeseen changes in the legislative and operating framework for electricity distribution in Ontario; the receipt of applicable regulatory approvals and requested rate orders; no unexpected delays in obtaining required approvals; the ratings issued by credit rating agencies; the level of interest rates and the Corporation's ability to borrow and no significant event occurring outside the ordinary course of business. These factors are not intended to represent a complete list of the factors that could affect the Corporation; however, these factors should be considered carefully and readers should not place undue reliance on forward-looking information made herein.

All forward-looking information in the news release is qualified in its entirety by the above cautionary statements. Furthermore, unless otherwise stated, all forward-looking information contained in this news release is made as of the date hereof, and the Corporation undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise, except as required by law.

SOURCE Toronto Hydro Corporation