Toronto Hydro Corporation

Toronto Hydro Corporation
Toronto Hydro-Electric System Limited

Toronto Hydro-Electric System Limited

March 21, 2007 14:06 ET

Toronto Hydro-Electric System Files Application For Distribution Rates Increase

TORONTO, ONTARIO--(CCNMatthews - March 21, 2007) - Toronto Hydro-Electric System Limited, a subsidiary of Toronto Hydro Corporation, has filed a Rate Application with its regulator, the Ontario Energy Board (OEB). The Application is seeking an increase of 6.3% on Toronto Hydro's electricity distribution rates effective May 1, 2007. If approved, the average residential customer using 1000 kilowatt hours per month would see an increase of $2.07 per month. This is a 1.7% overall increase on the total bill.

The increase is to recover costs for lost revenue and utility incentives due to very successful conservation programs in 2005 and 2006 and for the recovery of costs related to the purchase and installation of smart meters in accordance with the Province of Ontario's smart meter initiative.

"We are a leader in conservation and demand management programs; and smart meter installations," said Anthony Haines, President, Toronto Hydro-Electric System. "So far, we have reduced electricity loads in Toronto by a staggering 178.5 million kilowatt hours. This is enough electricity to power 178,000 homes for a month, and reduce greenhouse gasses by 50,356 tonnes, which is equivalent to taking 11,000 cars off the road for a year. In addition, by the end of 2006 we had installed 194,000 smart meters across Toronto, in preparation for the introduction of time-of-use rates in the future."

In February, Toronto Hydro-Electric System also applied for an increase of 0.4% on the distribution rate (0.1% on the total bill) effective May 1, 2007. This increase, if approved, would result in an increase of $0.14 per month for the average residential customer. This increase is to cover costs due to inflation and is adjusted for productivity improvements and the removal of the Large Corporation Tax, based on a formula provided by the OEB to be used by local distribution utilities.

Distribution rates cover the costs associated with bringing electricity from transformer stations to homes and businesses in Toronto. This includes the cost of building and maintaining overhead and underground distribution lines, poles, stations and local transformers.

About Toronto Hydro Corporation

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

- Toronto Hydro-Electric System Limited (THESL) - distributes electricity;

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

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

The principal business of the Corporation is the distribution of electricity by THESL. THESL owns and operates an electricity distribution system that delivers electricity to approximately 678,000 customers located in the City of Toronto. THESL 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

  • Toronto Hydro-Electric System Limited
    Blair Peberdy
    Vice-President, Communications and Public Affairs
    (416) 542-2515
    Toronto Hydro-Electric System Limited
    Pankaj Sardana
    Vice-President, Treasurer and Regulatory Affairs
    (416) 542-2707