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Hydro One — BMO Investor Tour, Ontario Grid Control Centre (October 2007)
16 slides from Hydro One's conference presentation, Oct 19, 2007
Slide 1: BMO Investor Tour – Ontario Grid Control Centre
HYDRO ONE BMO Investor Tour Ontario Grid Control Centre October 19, 2007 Ali R. Suleman – Vice President & Treasurer
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Hydro One Inc. Although Hydro One believes that such statements are based on reasonable assumptions, such statements are subject t
Slide 3: Hydro One at a Glance
Hydro One at a Glance • One of the largest electricity delivery systems in North America • Wholly owned by the Province of Ontario Transmission Distribution • $7.0B in assets • $5.2B in assets • 28,600 km network - over 96% of • 122,500 km system – spans 75% of capacity in Ontario Ontario • 51 LDCs,
Slide 4: Hydro One – Five Year Vision
Hydro One – Five Year Vision • Ensure public confidence as stewards of provincial assets • Best safety record in the world • Top quartile reliability • Customer satisfaction: 90% across all segments • Skills development and retention • Shareholder returns: Productivity / “A” category rating 4
Slide 5: Recent Recognition
Recent Recognition • North American Electricity Reliability Council (NERC) gives Hydro One Networks transmission operations marks of excellence • Edison Electric Institute’s “Emergency Recovery Award” in recognition of restoration efforts following severe storms in 2006 • Corporate Knights Magazine
Slide 6: Key Regulatory Decisions
Key Regulatory Decisions • Transmission rate decision • Bruce to Milton reinforcement • Distribution rate application for 2008 • Conservation & Demand Management 6
Slide 7: Investment Drivers
Investment Drivers • Ongoing core capital expenditures • Transmission system development – System growth and reliability – New and retiring generation facilities – Interconnections • Smart meters • Rationalization of Ontario electricity distribution sector 7
Slide 8: Transmission System Development - Overview
Transmission System Development - Overview Generation Commitments Area Supply North/South Congestion Manitoba Relief Interconnection Hydro Quebec Intertie Simcoe Area Bruce Area Congestion Relief Lambton Switchyard Woodstock GTA West & Area City of Nanticoke Toronto Windsor Area Voltage Support 8
Slide 9: Capital Expenditures
Capital Expenditures • Planned capital expenditures approx. $4B in 2007 to 2009 – Core capital expenditures – System development / smart meters • OPA’s Integrated Power System Plan has identified $3 to $5B of projects in 2009 and beyond timeframe • Likelihood and timing driven by: – CDM impacts – Sm
Slide 10: Stable Financial Performance
Stable Financial Performance Net Income 500 • Stabilizing regulatory environment 400 • Continued focus on operations $ millions 300 200 • Organic growth opportunities 100 0 • Financial metrics supportive of 2002 2003 2004 2005 2006 target credit ratings FFO Interest Coverage 5x 4x 3x 2x 1x 2002 2003
Slide 11: 2007 Second Quarter Results
2007 Second Quarter Results six months ended June 30 ($M) 2007 2006 Change Revenues 2,398 2,238 +7% Purchased power 1,163 1,103 +5% Operating costs 747 664 +13% Net income 242 251 -4% 11
Slide 12: Financing
Financing • Borrowing requirements driven by: Long-term – Debt maturities Credit Ratings – Non-core capital expenditures S&P A Moody’s Aa3 • MTN shelf main platform maturing July/09 DBRS A (high) – $2.2B remaining • $1B CP program to bridge requirements 12
Slide 13: Long-term Debt Maturities
$ millions 0 100 200 300 400 500 600 700 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 - 13 - 2027 2029 2031 2033 Long-term Debt Maturities 2035 2037 2039 2041 2043 2045
Slide 14: Summary
Summary • 99% regulated – experienced and supportive regulator • Stable financial performance • Going forward: – Continued focus on core wires business – Organic growth opportunities through infrastructure investments – Maintain credit quality 14
Slide 15: Hydro One Contacts
Hydro One Contacts Beth Summers Ali R. Suleman Chief Financial Officer Vice President and Treasurer Tel. – (416) 345-4008 Tel. – (416) 345-6126 Email – beth.summers@hydroone.com Email – a.suleman@hydroone.com William Paolucci Steve Hirano Assistant Treasurer Manager, Investor Relations Tel. – (416)
Slide 16: Hydro One
HYDRO ONE
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