Toronto Hydro advances system investment, grid readiness and customer solutions to support the city's energy needs

TORONTO, May 13, 2026 /CNW/ - Toronto Hydro Corporation (Toronto Hydro) today announced its financial and operating results for the first quarter ended March 31, 2026.

Net income after net movements in regulatory balances for the three months ended March 31, 2026, was $46.5 million, a decrease of $6.7 million compared to the same period last year. This decline was mainly due to higher net credits deferred into regulatory accounts resulting from recent federal capital cost allowance changes.

As part of Toronto Hydro's commitment to powering Toronto's energy needs through increasing distribution grid capacity and system resiliency, it has embarked on a $5.1 billion five-year investment plan. Capital expenditures for the three months ended March 31, 2026, were $250.5 million, an increase of $5.8 million or 2.4 per cent compared to the same period last year. Key capital investments included the delivery of customer connections, replacement of overhead infrastructure, and customer‑initiated asset relocations and expansions, including work supporting major city‑building and economic development projects such as the Eglinton Crosstown LRT, electric bus charging infrastructure at the TTC's Mount Dennis bus garage and a large‑scale data centre development in north Toronto.

FIRST QUARTER PERFORMANCE HIGHLIGHTS

Financial Performance and Developments

• On April 8, Toronto Hydro and the City of Toronto announced a $577 million investment to modernize Toronto's streetlighting system by 2035, which was unanimously approved at the April 22–24 Toronto City Council meeting. This 10-year investment through Toronto Hydro's subsidiary, Toronto Hydro Energy Services Inc., will fund the conversion of Toronto's streetlights to energy-efficient LED lighting with smart lighting controls and the ongoing renewal of Toronto's streetlighting infrastructure.
• On April 24, Morningstar DBRS Limited confirmed Toronto Hydro's issuer rating and senior unsecured debentures rating at "A" and its commercial paper rating at R-1 (low), each with stable trends.
• On May 13, Toronto Hydro's Board of Directors declared a dividend of $10.0 million with respect to the second quarter of 2026, which is payable to the City of Toronto by June 30, 2026, in accordance with its revised Shareholder Direction to support Toronto Hydro's ability to invest in the local electrical distribution grid.

Operational Performance and Developments

• In late 2025, Toronto Hydro secured 12 megawatts (MW) of local flexible electricity capacity through its Local Demand Response Program to maximize the efficiency of the grid during periods of peak demand at specific transformer stations across the city. The 12 MW of secured capacity — equivalent to powering 3,000 households — represents the largest single‑year procurement since the program launched in 2018 and will be deployed throughout the coming summer season.
• To support customers, Toronto Hydro has launched new energy-management offerings, including programs to promote the adoption of heat pumps, the acceleration of EV fast-charging projects across the city, the uptake of a new Electric Vehicle Charging (EVC) rate for customers and the adoption of smart load management panel technology capable of meeting growing electricity needs without the need for complex service upgrades.
• Toronto Hydro maintained a strong focus on safety across its operations and in the community, advancing its proactive safety program introduced in 2025 and educating customers and residents on public safety issues such as safe digging and fraud prevention.
• In preparation for Toronto's hosting of the FIFA World Cup 2026 in June, Toronto Hydro continues to closely partner and coordinate with key stakeholders, including the City of Toronto.
• In March, Toronto Hydro was recognized with an Excellence in Innovation Award for its 2025 United Way Employee Campaign, which raised $215,000 for the United Way Greater Toronto. As part of its ongoing commitment to community support, Toronto Hydro also made a $5,000 donation to the Centre for Addiction and Mental Health (CAMH) on behalf of its employee Charitable Impact Award winners, supporting mental health care and services in the community.
• Toronto Hydro expanded its community engagement through supporting the Moose Hide Campaign, an Indigenous‑led national initiative to end gender‑based violence, reflecting its broader commitment to reconciliation and fostering safer, more inclusive communities.

QUICK FACTS

• Toronto Hydro continues to invest in expanding, modernizing and sustaining the foundations of a safe, clean and reliable grid to serve the current and future electricity needs of Toronto. For more information about Toronto Hydro's 2025–2029 investment plan, please visit torontohydro.com/investmentplan
• Toronto Hydro's dividends to its sole shareholder, the City of Toronto, provide funding that may be used to support City services and priorities that benefit Torontonians
• Toronto Hydro's financial and operational results are reported quarterly and available at torontohydro.com/reports and through sedarplus.ca

QUOTE

"Toronto Hydro's first‑quarter results reflect our continued focus on prudent investment, operational excellence, and maintaining a strong financial foundation for the City and our customers. We advanced important initiatives to support Toronto's growth and energy needs, including investments in critical infrastructure, new customer‑focused programs, and grid flexibility and resilience. As we move through 2026, we remain focused on executing with discipline and delivering long‑term value for our customers, our shareholder and the communities we serve."

-   Jana Mosley, President and CEO, Toronto Hydro

ABOUT TORONTO HYDRO

Toronto Hydro Corporation is the holding company for Toronto Hydro-Electric System Limited, which owns and operates Toronto's electricity distribution system, and Toronto Hydro Energy Services Inc., which provides and maintains street and expressway lighting infrastructure throughout the city. Collectively, Toronto Hydro powers Canada's largest city through delivering electricity and related energy solutions to more than 3 million people and businesses, safely, reliably and sustainably.

With the dedication of our skilled employees and partners, we're electrifying communities today and building a brighter tomorrow by investing in a modern, capable and resilient distribution grid and delivering value to our customers and sole shareholder, the City of Toronto. For more information, visit torontohydro.com, or follow us on X, Instagram, Facebook, TikTok, YouTube and LinkedIn.

FORWARD-LOOKING INFORMATION

Certain information included in this news release constitutes "forward-looking information" within the meaning of applicable securities legislation. All information, other than statements of historical fact, which address activities, events or developments that we expect or anticipate may or will occur in the future, are forward-looking information. The words "anticipates," "believes," "budgets," "continual," "could," "estimates," "expects," "intends," "may," "ongoing," "outlook," "plans," "seek," "will," or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking information, although not all forward-looking information contains these identifying words. The purpose of the forward-looking information (including any financial outlook) contained herein is to provide Toronto Hydro's current expectations regarding its future results of operations, performance, business prospects and opportunities, and readers are cautioned that such information may not be appropriate for other purposes. All forward-looking information is given pursuant to the "safe harbour" provisions of applicable Canadian securities legislation.

Specific forward-looking information in this news release includes, but is not limited to, statements regarding the payment of dividends to the City, Toronto Hydro's continuing investments in its grid, including those outlined in its five-year investment plan, and expectations regarding the investment to modernize Toronto's streetlighting system, including anticipated benefits and timing of implementation. The forward-looking information reflects Toronto Hydro's current beliefs and is based on information currently available to Toronto Hydro. Forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. For information on Toronto Hydro's risks, uncertainties and other factors that could cause actual events or results to differ materially from those described in forward-looking information, refer to the "Risk Management and Risk Factors" section of Toronto Hydro's Management's Discussion and Analysis for the years ended December 31, 2025 and 2024, available at torontohydro.com/reports and through sedarplus.ca.

All forward-looking information in this document is qualified in its entirety by the above cautionary statements. Furthermore, unless otherwise stated, all forward-looking information contained herein is made as of the date hereof, and Toronto Hydro undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise, except as required by law.

SOURCE Toronto Hydro Corporation