Moving Forward: Toronto Hydro advances grid readiness, sustainability and customer service to support Toronto's energy future

TORONTO, Feb. 25, 2026 /CNW/ - Toronto Hydro Corporation (Toronto Hydro) today announced its financial and operating results for the year ended December 31, 2025.

Net income after net movements in regulatory balances for the year ended December 31, 2025, increased to $201.5 million, up $71.2 million from the prior year, reflecting the first year of Toronto Hydro's latest five-year rate period as approved by the Ontario Energy Board (OEB). The increase was primarily due to higher distribution revenue from OEB-approved distribution rates, net of rate riders, and increased other revenue, partially offset by higher depreciation and amortization from capital additions supporting system reliability and growth.

As part of Toronto Hydro's commitment to powering Toronto's energy needs today and tomorrow through increasing distribution grid capacity and system resiliency, it has embarked on a $5.1 billion five-year investment plan, which includes significant capital investments in the local distribution grid. Capital expenditures for the year ended December 31, 2025, were $944.1 million, an increase of $61.7 million or 7.0 per cent compared to the same period last year. Key capital initiatives in 2025 included the delivery of customer connections throughout the city, replacement of overhead and underground infrastructure, customer-initiated asset relocations and expansions, and ongoing modernization and replacement of Toronto Hydro's metering program.

COMMITMENT TO SAFETY

• In 2025, Toronto Hydro experienced the tragic loss of a valued team member in a workplace incident — underscoring the critical importance of safety across the company. Throughout the year, Toronto Hydro strengthened its focus on safety, enhancing its overall safety culture and introducing a new proactive safety program for employees. As it moves forward, Toronto Hydro remains firmly committed to reinforcing safe work practices, learning from every incident and striving for continuous improvement.

YEAR-END PERFORMANCE HIGHLIGHTS

Financial Performance and Developments

• On January 2, 2026, Toronto Hydro issued 13 common shares to the City of Toronto for total proceeds of $25.0 million in relation to an equity contribution from the City of Toronto to support Toronto Hydro's long-term financial stability and strengthen its ability to invest in the electricity distribution grid
• In February 2026, Toronto City Council approved the City's 2026 budget, which includes a proposed $577 million investment over 10 years to modernize the city's streetlighting system. The investment is intended to support ongoing servicing requirements, renewal of aging infrastructure and full conversion to LED technology. Implementation is contingent on the City and Toronto Hydro Energy Services Inc. entering into an amended service agreement.
• On February 25, 2026, Toronto Hydro's Board of Directors declared a dividend of $10.0 million with respect to the first quarter of 2026, which is payable to the City of Toronto by March 31, 2026, in accordance with its revised Shareholder Direction to support Toronto Hydro's ability to invest in the grid

Operational Performance and Developments

• Toronto Hydro successfully executed the first year of its 2025–2029 capital plan, completing 471 investment projects and more than 5,300 customer connections and upgrades across the city. As part of its extensive ongoing investment in Toronto's electricity system, Toronto Hydro replaced or installed nearly 3,500 poles, more than 3,500 transformers, nearly 60 circuit km of overhead wires and more than 150 circuit km of underground cables — contributing to a stronger, more resilient local grid.
• As part of its commitment to supporting the communities it serves, Toronto Hydro employees proudly raised $215,000 for the United Way Greater Toronto, helping power vital services and strengthen communities across Peel, Toronto and York Region
• In alignment with the City's TransformTO Net Zero Strategy, Toronto Hydro continued to make progress on emissions reduction, lowering Scope 1 emissions by more than 15 per cent in 2025 compared to 2019 and achieving 33 per cent fleet electrification (fully electric and hybrid-electric vehicles)
• Toronto Hydro surpassed its 2023–2025 climate action targets, supporting Toronto residents and businesses with the installation of more than 15,000 electric vehicle (EV) chargers, more than 700 heat pumps, and nearly 25 megawatts of solar and storage over that period
• In recognition of its sustainability performance, Toronto Hydro was ranked first among electricity transmission and distribution utilities on Corporate Knights' annual ranking for corporate citizenship in 2025, and second on Corporate Knights' list of the most sustainable public corporations in the world
• Toronto Hydro introduced new tools and services to better serve customers, including free energy coaching for residents, a new Cleantech Services Directory, an interactive load capacity map, a generation and storage capacity lookup tool, a new Electric Vehicle Charging (EVC) rate for commercial EV charging stations and automated electricity data uploads for large building owners
• In October, Toronto Hydro and the Toronto Parking Authority (TPA) marked the energization of TPA's 500^th EV charging station, a major milestone in Toronto's electrified transportation journey and a reflection of the ongoing successful collaboration between TPA and Toronto Hydro
• On December 11, the OEB issued its decision and rate order approving Toronto Hydro-Electric System Limited's (THESL) 2026 rates, including the disposition of applicable deferral and variance accounts, in line with THESL's expectations
• As part of its focus on enabling economic development, Toronto Hydro announced its support for Ontario's bid to bring the Defence, Security and Resilience Bank headquarters to Toronto, an opportunity to create thousands of high-skilled jobs, strengthen supply chains, and accelerate investment in advanced technologies that will power economic growth and resilience for decades to come
• In January 2026, Toronto Hydro announced its support for the Ontario government's development of the Third Line, a new transmission line to expand regional capacity and bring more power to Canada's largest city

QUICK FACTS

• Toronto Hydro's financial and operational results are reported quarterly and available at torontohydro.com/reports and through sedarplus.ca
• 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

QUOTE

"2025 was a year of meaningful progress for Toronto Hydro. We strengthened the safety, reliability and resilience of our electricity system, continued to modernize the grid to meet Toronto's growing and evolving needs, and delivered strong financial performance while supporting essential city services and priorities. As we look ahead to 2026, we remain focused on empowering our customers and ensuring the electricity system is ready to support a brighter and more electrified future for our city through operational excellence."

 -   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 and Toronto Hydro's continuing investments in its grid, including those outlined in its five-year investment plan. 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