Hydro One Limited · TSX:H
Hydro One — Investor Presentation (September 2008)
13 slides from Hydro One's investor presentation, September 2008
Slide 1: September 2008 Investor Presentation
September 2008 Investor Presentation 2
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 • $7.3B in assets • $5.4B in assets • 28,900 km network - over 96% of • 123,000 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 Hydro On
Slide 5: Key Regulatory Decisions
Key Regulatory Decisions • Distribution rate hearing for 2008 • Bruce to Milton reinforcement • Uniform transmission rate adjustment • Transmission rate application Hydro One Investor Presentation 6
Slide 6: Investment Drivers
Investment Drivers • Ongoing core capital expenditures • Transmission system development – System growth and reliability – New and retiring generation facilities – Interconnections • OPA’s Independent Power System Plan (IPSP) • Smart meters • Rationalization of Ontario electricity distribution secto
Slide 7: Transmission System Development - Overview
Transmission System Development - Overview North/South Congestion Relief Manitoba Interconnection Hydro Quebec Intertie Generation Commitments Simcoe Area Area Supply Bruce Area Congestion Relief Lambton Switchyard Woodstock GTA West & Area City of Toronto Windsor Area Hydro One Investor Presentatio
Slide 8: Capital Expenditures
Capital Expenditures • Planned capital expenditures approx. $4.5B in 2008 to 2010 – Core capital expenditures – System development / smart meters • Likelihood and timing driven by: – CDM impacts – Smart meter program – Generation development / retirements – Approval process / times Hydro One Investo
Slide 9: Stable Financial Performance
Stable Financial Performance • Stabilizing regulatory environment • Continued focus on operations • Organic growth opportunities • Financial metrics supportive of target credit ratings C$M Net Income FFO Interest Coverage 5x 500 4x 400 3x 300 200 2x 100 1x 0 2002 2003 2004 2005 2006 2007 2002 2003 2
Slide 10: Financing
Financing • Borrowing requirements driven by: – Debt maturities – Non-core capital expenditures • MTN shelf main platform maturing July/09 – $1.65B remaining • $1B CP program to bridge requirements Long-term Credit Ratings S&P - A+ Moody’s - Aa3 DBRS - A (high) Hydro One Investor Presentation 11
Slide 11: Long-term Debt Maturities
$ millions 0 100 200 300 400 500 600 700 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Long-term Debt Maturities 2032 2034 2036 2038 2040 2042 2044 2046 Hydro One Investor Presentation 12
Slide 12: 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 Hydro One Investor Presentation 13
Slide 13: hydro
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