Toronto Hydro to Receive Equity Investment From City of Toronto
July 18, 2024
The City of Toronto (City) and Toronto Hydro Corporation (Toronto Hydro or the Corporation) have agreed on the City making new equity investments in Toronto Hydro totalling $300 million, including a one-time upfront special equity investment of $50 million by 2025 and multi-tranche annual equity contributions of $25 million over 10 years beginning in 2025.
The City of Toronto has approved these investments and supporting documents were finalized and provided to Toronto Hydro on June 28, 2024, following the meeting of City Council earlier that week.
In addition to these equity investments, City Council has also approved amendments to Toronto Hydro’s Shareholder Direction, which set out targets for reduced dividends from the Corporation to the City for the period between 2025 and 2034.
These equity investments and Shareholder Direction amendments support Toronto Hydro’s long-term financial stability and optimize the returns on equity to the City, strengthen the Corporation’s ability to invest in the grid in line with its regulated capital structure, and help deliver on Toronto Hydro’s Climate Action Plan supporting the City’s Net Zero Strategy.
QUICK FACTS
- The demand for electricity is expected to increase over the coming decades due to population growth, housing intensification, transit expansion, economic development, and customers shifting away from emissions-intensive fossil fuels to largely emissions-free electricity
- Toronto Hydro’s Climate Action Plan is designed to support and enable the City’s Net Zero Strategy by implementing initiatives to expand the capacity and capabilities of the local grid and to provide climate advisory services to help Toronto residents and businesses decarbonize
- The City is sole shareholder of Toronto Hydro and sets corporate governance principles with respect to the Corporation through its Shareholder Direction
