Hydro One Releases 2008 Year-End Financial Results
For Immediate Release – February 11, 2009
Toronto – Hydro One Inc. today released its 2008 year-end results with net income for the year of $498 million and revenues of $4,597 million.
“2008 represented a year of important progress on several key strategic initiatives aimed at renewing Ontario’s electricity system,” said Laura Formusa, President and CEO of Hydro One. “Through our capital expansion program, we have embarked on an aggressive infrastructure renewal program and continued to deliver on a number of complex, large-scale projects.”The following are some of our key achievements for 2008:
�� In September, the Ontario Energy Board (OEB) approved our application for leave to construct our Bruce to Milton Transmission Reinforcement Project (Bruce to Milton Project). In its decision, the OEB found the project to be in the public interest in regard to its impact on price, reliability and quality of electricity service to consumers. In addition to obtaining this important approval, we signed landmark protocol agreements with two First Nation and Métis communities that ensure their continued involvement in the project’s regulatory process.
�� In December, the OEB issued its decision approving our subsidiary Hydro One Networks Inc.’s application for its 2008 distribution revenue requirement and customer rates. As part of the decision, the OEB approved substantially all of our work program requirements and approved recovery of our smart meter expenditures made prior to the end of 2007. Subsequent expenditures will continue to be tracked in deferral accounts for future recovery.
�� We reached important targets in our effort to support the Province of Ontario’s goal to have a smart meter in every home and business by 2010. By the end of 2008, we had installed more than 780,000 smart meters in our service territories since the beginning of the program.
�� Our overall residential and small business customer satisfaction scores increased from 82% satisfied in 2007 to 86% satisfied in 2008. These results recognize the positive impact of our reliability programs and our involvement in our communities.
�� In December, back-to-back winter storms knocked out power to about 260,000 of our customers. We deployed 1,300 workers from our company and from 23 local utilities, representing as many workers as responded to the 1998 Ice Storm. We also assisted two U.S. utilities following significant weather events in the latter part of the year.
�� We made advances in our aggressive Workforce Renewal Program, strengthening our long and productive association with the engineering faculties at the Universities of Western Ontario and Waterloo and providing new partnerships with Ryerson and McMaster universities.
�� We were again recognized as one of Canada’s Top 50 Corporate Citizens by Corporate Knights Magazine. We placed 6th in the annual ranking, moving 20 spots up from our 2007 ranking, and placed first in the utility category. We were also named one of Canada’s Top 10 Most Diverse Companies in Corporate Knights’ annual Leadership Diversity Index. This is the second consecutive year the Company was named to the top ten list.
�� During the year, we raised $1,050 million through the issuance of medium term notes and increased our committed revolving credit facility with a syndicate of banks to $1,000 million from $750 million. We issued $500 million in medium term notes in the final quarter of last year and $300 million in the first month of this year at cost-effective rates, despite the ongoing turmoil in the financial markets.
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