Hydro One Limited · TSX:H
Hydro One — Debt Investor Presentation (May 2008)
14 slides from Hydro One's debt investor presentation, May 2008
Slide 1: Hydro One Investor Presentation May 2008
HYDRO ONE Investor Presentation May 2008
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 4
Slide 5: Key Regulatory Decisions
Key Regulatory Decisions • Distribution rate hearing for 2008 • Bruce to Milton reinforcement • Filing transmission rate application for 2009 5
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 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 7
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 8
Slide 9: Stable Financial Performance
Stable Financial Performance Net Income • Stabilizing regulatory environment 500 • Continued focus on operations $ millions 400 300 200 • Organic growth opportunities 100 0 • Financial metrics supportive of 2002 2003 2004 2005 2006 2007 target credit ratings FFO Interest Coverage 5x 4x 3x 2x 1x 2002
Slide 10: 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) – $1.65B remaining • $1B CP program to bridge requirements 10
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 - 11 - 2028 2030 2032 Long-term Debt Maturities 2034 2036 2038 2040 2042 2044 2046
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 12
Slide 13: 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 13
Slide 14: Hydro One
HYDRO ONE