Toronto Hydro Corporation

Toronto Hydro Corporation

April 12, 2006 15:56 ET

Toronto Hydro-Electric System Limited Decreases Distribution Rates

TORONTO, ONTARIO—-(CCNMatthews - April 12, 2006) - Toronto Hydro-Electric-System
Limited is pleased to announce that it has received approval by the Ontario
Energy Board (OEB) to decrease the distribution portion of customers' total
bills by 2.3 per cent effective May 1, 2006.

The OEB also announced a province-wide electricity commodity rate
increase, which in Toronto totals 8.1 per cent. Together, these rate changes
reflect an overall increase of 5.8 per cent to Toronto Hydro customers. This
is one of the lowest increases in the province. The average Toronto Hydro-
Electric System customer consuming 1,000 kilowatt hours (kwh) per month will
see an increase of $6.72 per month.

Commodity prices refer to the Electricity portion of your bill and are
regulated by the Ontario Energy Board. Toronto Hydro-Electric System Limited
collects this money, without mark-up, and pays it directly to our suppliers.
Effective May 1, 2006, residential customers will pay 5.8 cents per kilowatt
hour for the first 600 kilowatt hours used during the summer season (May to
October) and 6.7 cents per kilowatt hour above that threshold. For the winter
season (November to April), residential customers will pay the lower price for
the first 1,000 kilowatt hours consumed and the higher price for electricity
used above that threshold.

Distribution charges refer to the costs associated with bringing the
electricity from transformer stations to Toronto Hydro and then to your home
or business. This includes the cost of building and maintaining the
distribution lines and poles.

"Toronto Hydro customers will see one of the lowest rate increases in the
province due to efficiencies gained through the amalgamation of the former
Metro utilities in 1998. We will reinvest a part of these savings in improving
the reliability of our distribution system and implementing the Province of
Ontario's smart meter initiative," said David O'Brien, President and Chief
Executive Officer of Toronto Hydro Corporation.

Toronto Hydro-Electric System will also continue with its $40 million
investment in Conservation and Demand Management, an initiative previously
approved by the OEB. This program meets Ontario's call to establish a
'conservation culture' in the province and includes the promotion of energy
efficient lighting and appliances and incentive programs, public education
programs and investments in local distributed energy options.

About Toronto Hydro

The Corporation is a holding company which through its wholly-owned

- Toronto Hydro-Electric System Limited (LDC) - distributes

- Toronto Hydro Energy Services Inc. (TH Energy) - provides
professional and energy management services to help businesses
lower their energy consumption costs. In addition, TH Energy
operates a residential rental water heater business and is
involved in the development and operation of renewable energy
generation projects.

- Toronto Hydro Telecom Inc. - provides innovative data
communications services to many of Canada's leading business and

- Toronto Hydro Street Lighting Inc. - owns, manages and operates
the street and expressway lighting system in the City of Toronto.

The principal business of the Corporation is the distribution of
electricity by LDC. LDC owns and operates an electricity distribution system
that delivers electricity to over 676,000 customers located in the City of
Toronto. LDC is the largest municipal electric distribution company in Canada.

Contact Information

  • Pankaj Sardana
    (416) 542-2707

    Blair Peberdy
    Communications & Public Affairs
    (416) 542-2515