Hydro One Limited · TSX:H
Hydro One — Investor Presentation (June 2015)
21 slides from Hydro One's investor presentation, June 2015
Slide 1: 2018-2022 Distribution Rate Application Overview
2018-2022 Distribution Rate Application Overview
Slide 2: Hydro One at a Glance
HYDRO ONE AT A GLANCE OS F 640,000 KM2 —_ 30,000 KMOF HIGH-VOLTAGE 306 SERVICE TERRITORY TRANSMISSION LINES TRANSMISSION STATIONS alle 1.3 MILLION RESIDENTIAL 123,000 KM OF 1.6 MILLION AND BUSINESS CUSTOMERS LOCAL DISTRIBUTION DISTRIBUTION ACROSS ONTARIO LINES POLES hydroS : one
Slide 3: How the System Works
HOW THE SYSTEM WORKS ONTARIO POWER GENERATION AND PRIVATE GENERATION COMPANIES mn Generation HYDRO ONE TRANSMISSION Transformer Station Transformer Station Transmission Lines = = HYDRO ONE DISTRIBUTION [ sig = Pole-Mounted Distribution Distribution Station Transformer Lines — —_ hydroS one
Slide 4: Sample customer electricity bill
hyd ro one Service address: CUSTOMER NAME CUSTOMER NAME 2 ADDRESS FIELD, ADDRESS NOTES Your account number: 123456123456 Page 2 of 2 How we calculated your charges Balance forward Your electricity charges Amount of your last bill $207.42 Amount we received on January 15, 2017 - thank you $207.42 CR
Slide 5: Fair Hydro Plan Savings
FAIR HYDRO PLAN SAVINGS ONTARIO AVERAGE lt: 25% estimated total bill reduction for all residential and small business customers OUR CUSTOMER hyd oF one Hydro One customers will receive a 31% decrease on average Ly hydroS one
Slide 6: Fair Hydro Plan
FAIR HYDRO PLAN Your bill $177 $122 $124 Jan 1, 2017 Jul 1, 2017 (Before Fair Hydro Plan} uy Jan 1, 2018 z 4 *All numbers ae illustrative estimates hydroG “Typical medium density Hydro One customer using 750kWh per month one
Slide 7: Fair Hydro Plan
7 FAIR HYDRO PLAN Estimated Fair Hydro Jan 2017 (Before Fair Hydro Plan) Time-of-Use Plan Seniige (As of July 1, 2017) Commodity $83 “$22 Delivery $68 -$16 Regulatory $6 -$2 Taxes $20 -$15 TOTAL $177 -$55 = $122 *Numbers reflect final Fair Hydro Plan adjustment for July 1, 2017 *Typical medium densi
Slide 8: Hydro One Distribution Application 2018
HYDRO ONE DISTRIBUTION APPLICATION 2018 Distribution changes +$2.79 Cancelled out by Fair Hydro Plan -$2.79 Flow through transmission costs not covered by FHP +$1.95 Your bill: $124 *If he OEB approves Hydro One's 20182022 Distribution Rate Application hydro@ 8 *All numbers are illustrative estimate
Slide 9: Why We Have to Invest
WHY WE HAVE TO INVEST D rl = RELIABILITY RESTORATION PRODUCTIVITY * Our infrastructure is aging. ° Reducing spending * Not investing in - Our ol . _.f increases the risk of productivity improvements ny ihe ii, elite 1 outages. means higher costs that overall reliability at current put upward pressur
Slide 10: Aging Poles
10 AGING POLES 1.6 Million Poles 280,000 poles at or beyond expected service life as of 2017 120,000 poles will reach expected service life within the next five years hydroS one
Slide 11: What Goes Into Developing Our Distribution Plan
WHAT GOES INTO DEVELOPING OUR DISTRIBUTION PLAN
Slide 12: Building Our Plan
BUILDING OUR PLAN WE TALKED TO 20,000 SURVEYS FOCUS GROUPS KEEP COSTS MAINTAIN & WORKSHOPS LOW RELIABLE SERVICE & CAPACITY ° hyd ro one
Slide 13: Capital Investment in Distribution
CAPITAL INVESTMENT IN DISTRIBUTION 2017 Forecast TOTAL: $633.6M New Connections, Fleet and Facilities 10.2% fT $s T12.1% Upgrades and System i Reinforcement Stations and c Control Facilities 33.5% 8.7% 13 Lines 35.5% hyde
Slide 14: Operations and Maintenance Investments in Distribution
OPERATIONS AND MAINTENANCE INVESTMENTS IN DISTRIBUTION 2017 Forecast Property Taxes TOTAL: $580.4M ligt Coen Common Corporate Costs 10.7% Customer Care 22.8% Maintaining the System 57.6% Operations 5.8% Ss Development 2.3% hyde one
Slide 15: So What Does Our Plan Look Like?
SO WHAT DOES OUR PLAN LOOK LIKE¢
Slide 16: Hydro One Will...
HYDRO ONE WILL... ° Direct spending to the infrastructure that needs it the most ° Improve efficiency ° Build in productivity savings of more than $380 million over five years
Slide 17: Key Capital Programs in Our Plan
KEY CAPITAL PROGRAMS IN OUR PLAN Serving over 1.3 million customers TT POLE REPLACEMENTS STATION REFURBISHMENT REPLACING 72,151 POLES IN POOR REFURBISHING AN AVERAGE OF 15 CONDITION FROM 2018-2022 PER YEAR BETWEEN 2018-2022 $579M $148M 7 hydro
Slide 18: Key Operations and Maintenance
KEY OPERATIONS AND MAINTENANCE Serving over 1.3 million customers FORESTRY TROUBLE CALLS MAINTAINING 12,750 KM OF 42,645 CALLS EXPECTED RIGHTS-OF-WAY IN 2018 ANNUALLY $150M IN 2018 $78M IN 2018 18 hydroS one
Slide 19: Part of a Total Investment of $633.9M
PART OF A TOTAL INVESTMENT OF $633.9M in capital investment to expand, upgrade and renew the Distribution System in 2018 $584.8M to maintain and operate the Distribution System in 2018
Slide 20: Measuring Our Progress
MEASURING OUR PROGRESS WE WILL MEASURE HOW WELL WE eral PL C8 FOCUS ON OPERATE RESPOND TO PERFORM OUR EFFECTIVELY PUBLIC POLICY FINANCIALLY CUSTOMERS mo hydroS one
Slide 21: We would be happy to hear from you.
We would be happy to hear from you.