SHairholder approves amendment to dividend policy
Toronto, June 28, 2024 /CNW/ – The City of Toronto (City) and the Toronto Hydro Corporation (Toronto Hydro or the Corporation) shall $300 millionThis includes: $50 million By 2025, multi-tranche annual equity contributions will be $25 million Over a 10-year period starting from 2025, City of Toronto The documentation approving and supporting these investments has been completed and submitted to Toronto Hydro. June 28, 2024The move followed a City Council meeting earlier in the week.
In addition to these equity investments, city council also approved amendments to Toronto Hydro’s shareholder guidelines, which set targets for reducing the company’s dividends to the city between 2025 and 2034.
These equity investments and shareholder policy amendments will support Toronto Hydro’s long-term financial stability, optimize the City’s return on equity, strengthen the Corporation’s ability to invest in the grid in line with its regulatory capital structure, and help deliver Toronto Hydro’s Climate Action Plan in support of the City’s Net Zero strategy.
Quick Facts
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Demand for electricity is expected to increase in the coming decades due to population growth, housing consolidation, transportation expansion, economic development and customers shifting from emissions-intensive fossil fuels to near-emissions-free electricity.
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Toronto Hydro’s Climate Action Plan is designed to support and deliver on the City’s net-zero strategy by implementing efforts to expand the capacity and capability of the local electricity grid and provide climate advisory services. Toronto Decarbonizing residents and businesses
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The City is Toronto Hydro’s sole shareholder and sets corporate governance principles for the company through its Shareholder Guidelines.
about Toronto Hydro
Toronto Hydro is a holding company that wholly owns two subsidiaries:
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Toronto Hydro Electric System Ltd. (THESL) – distributes electricity.
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Toronto Hydro Energy Services – Provides street and highway lighting services for the City of Toronto
Toronto Hydro and its subsidiaries’ principal business is electricity distribution through THESL, which owns and operates the electricity distribution system for Canada’s largest city. The company is recognized by the Canadian Power Corporation as a Sustainable Electricity Leader™ and serves approximately 794,000 customers within the City of Toronto, distributing approximately 17% of the electricity consumed in the Province of Ontario.
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Forward-Looking Information
Certain information contained 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 Company’s future operating performance, performance, business prospects and opportunities and may not be suitable for other purposes. All forward-looking information is provided pursuant to the “safe harbor” provisions of applicable Canadian securities legislation. Words such as “may,” “potential,” “expect,” “seek,” “will” and similar expressions are often used to identify forward-looking information, although not all forward-looking information contains these identifying words.
Certain forward-looking information contained in this news release includes: increasing demand for electricity; City of Toronto and dividend payments. City of Toronto As a shareholder.
Forward-looking information reflects management’s belief and is based on information currently available to management. Factors that could cause results or events to differ from currently expected include, but are not limited to, the following:
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the risk that the Company will not be able to maintain acceptable levels of financial strength and operating results;
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the risk that sufficient debt or equity financing will not be available to meet the Company’s requirements, objectives or strategic opportunities;
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the risk that our credit ratings may be downgraded;
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risks relating to the timing and extent of changes in current interest rates and discount rates and their impact on future revenue requirements and financial obligations;
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the risk of changes in government policies and regulatory requirements, including those relating to climate change and the energy transition;
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Risk of adverse regulatory decisions
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risks associated with capital projects;
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risks arising from inflation, economic trends and other general macroeconomic factors;
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risks related to market expectations regarding increased demand for electricity;
Forward-looking information is subject to risks, uncertainties and other factors that may cause actual results to differ materially from historical results or from the 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 our management in consideration of historical experience, historical trends, current conditions, expected future developments and other factors that management believes are reasonable in the circumstances, including, but not limited to, the amount of our indebtedness, changes in our financing requirements, future trends in the economy and financial markets, the occurrence of unexpected delays and costs in our capital projects, unexpected changes in project plans and unexpected changes in the legal and operating framework for the supply of electricity in the United States. Ontariothe receipt of applicable regulatory approvals and required fee instructions, the absence of unanticipated delays in obtaining necessary approvals, ratings issued by credit rating agencies, interest rate levels and the Company’s borrowing ability, and the absence of significant events outside the ordinary course of business. These factors are not intended to represent a complete list of factors that may affect the Company. However, these factors should be considered carefully and readers should not place undue reliance on the forward-looking information provided herein.
All forward-looking information in this news release is subject to the above cautionary statements. Furthermore, unless otherwise expressly stated, all forward-looking information in this news release speaks as of the date hereof, and the Company undertakes no obligation to revise or update any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Source: Toronto Hydro Corporation
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