Toronto Hydro Energy Services Inc.

Toronto Hydro Energy Services Inc.
Toronto Hydro Corporation

Toronto Hydro Corporation

January 31, 2007 07:00 ET

Toronto Hydro Energy Services Reaches Agreement to Sell Water Heater Rental Business

TORONTO, ONTARIO--(CCNMatthews - Jan. 31, 2007) -

Attention: Business Editors

Toronto Hydro Corporation, announced today that its wholly owned subsidiary, Toronto Hydro Energy Services Inc. ("TH Energy"), has entered into a definitive agreement to sell its water heater rental business to The Consumers' Waterheater Income Fund (The "Fund") (TSX:CWI.UN). Chris Tyrrell, TH Energy's President, said, "The transaction is consistent with the trend in the industry and will help TH Energy provide greater focus on its core business."

The assets of the business include approximately 85,000 electric and natural gas water heaters, which TH Energy has owned and operated in the Greater Toronto Area since 2001. The Fund will acquire the assets for approximately $40.9 million, which is subject to adjustment.

Under the terms of the sale agreement, subject to customary closing conditions, the transfer of business will close on February 8, 2007, although TH Energy will continue to service the water heater customers on behalf of The Fund until March 10, 2007, pursuant to a transitional services agreement to be entered into at closing. Until March 10, 2007, customer inquiries should be directed to TH Energy's customer service number (416-382-6540). After March 10, 2007, inquiries should be directed to Direct Energy Marketing Limited's ("Direct Energy") customer service number (1-800-266-3939).

Mr. Tyrrell further said, "The Fund's offer was competitive, comprehensive, demonstrated experience in the water heater rental business and, above all, focused on customer service. By selling the assets to the Fund, we are confident that our customers will continue to enjoy the same high level of service they are accustomed to receiving from TH Energy."

The Fund currently owns a portfolio of over 1.3 million installed water heaters and other assets, which are rented primarily to residential customers in Ontario. Direct Energy currently supports The Fund with a roster of 500 service technicians and 150 installation and replacement crews that are made available to The Fund's customers.

About Toronto Hydro

Toronto Hydro Corporation is a holding company which through its wholly-owned subsidiaries:

-Toronto Hydro-Electric System Limited ("LDC") - distributes electricity;

-Toronto Hydro Energy Services Inc. - provides energy efficiency products and services, and delivers street lighting and expressway lighting services; and

-Toronto Hydro Telecom Inc. - leases fibre optic cable capacity and provides data communication services.

The principal business of Toronto Hydro Corporation is the distribution of electricity by LDC. LDC owns and operates an electricity distribution system which delivers electricity to approximately 678,000 customers located in the City of Toronto. LDC is the largest municipal electric distribution company in Canada

Forward-Looking Information

Certain portions of this press release may constitute forward-looking information. Forward-looking information means disclosure regarding possible events, conditions or results that is based on assumptions about future economic conditions and courses of action or attributable to third parties. In some cases, forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "anticipate", "believe", "estimate", "predict", "potential", "continue", "plan" and similar expressions or the negative of these terms or other comparable terminology. Although the corporation believes that it has a reasonable basis for the forward-looking information included in the press release, such information is subject to a number of risks, uncertainties and assumptions, that may cause actual events, conditions or results to differ materially from those contemplated by the forward-looking information. Some of the factors that could cause such differences include legislative or regulatory developments; financial market conditions, general economic conditions and the ratings assigned to the corporation or its affiliates or their debt securities by rating agencies. The corporation has no obligation nor any intention to update publicly or to revise any of the forward-looking information included in the press release after the date thereof, whether as a result of new information, future events or circumstances or otherwise.

Contact Information

  • To Arrange an Interview
    Toronto Hydro Corporation
    Blair Peberdy
    (416) 542-2515 or Cell: (416) 356-8001
    Toronto Hydro Corporation
    Pankaj Sardana
    (416) 542-2707 or Cell: (416) 648-0809