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Toronto Hydro

Toronto Hydro is a Canadian company that owns and operates the distribution system serving the city of , , delivering power to approximately 796,000 residential, commercial, and industrial customers (as of 2024) across a population of about 3 million residents. Established on May 2, 1911, following a municipal vote in 1908 to create a public provider, it has evolved into a key player in 's energy sector, distributing around 24,155 gigawatt-hours annually (as of 2024), which represents approximately 18% of the province's total consumption. Wholly owned by the City of , Toronto Hydro Corporation functions as a overseeing its primary subsidiaries: Toronto Hydro-Electric System Limited, which handles distribution, and Toronto Hydro Energy Services Inc., which provides street lighting and lighting services. The company maintains an extensive infrastructure network, including 185,440 utility poles and 29,392 kilometers of circuit wires (as of ), while employing about 1,410 staff (as of ) dedicated to ensuring safe, reliable service and infrastructure efficiency. Regulated by the Energy Board, Toronto Hydro emphasizes innovation and sustainability, with historical milestones such as the 1998 amalgamation of six local utilities under provincial legislation, the introduction of time-of-use pricing in 2010, and early adoption of smart meters in 2004. Today, it supports Toronto's electrification efforts, including infrastructure and initiatives, positioning it as a vital contributor to the city's economic and environmental goals.

Corporate Structure and Governance

Ownership and Organization

Toronto Hydro Corporation is wholly owned by the City of Toronto and operates as a municipal corporation, having been incorporated in 1999 to manage the city's electricity distribution assets originally established in 1911. As the sole shareholder, the City of Toronto provides strategic direction through a formal Shareholder Direction document that outlines governance principles and performance expectations for the corporation. The corporation functions as a , providing oversight, management, and strategic guidance to its two wholly owned subsidiaries. Hydro-Electric System Limited (THESL) is responsible for the ownership and operation of the system serving the city. Hydro Energy Services Inc. (TH Energy) handles street lighting and expressway lighting services, including maintenance and related ancillary activities. Its operations are subject to regulatory oversight by the Ontario Energy Board (OEB), which sets distribution rates, enforces performance standards, and ensures compliance with provincial electricity regulations.

Leadership and Board

Toronto Hydro's Board of Directors consists of 11 members appointed by the City of , the sole shareholder, comprising eight public members selected through the city's public appointments process, two city councillors, and the or the Mayor's designate. The board is chaired by Brian Topp, who assumed the role effective December 19, 2024. Board members collectively possess expertise in areas such as finance, energy, and , as guided by the City of Toronto's Policy on Board Governance Structures. Recent appointments include Lisa DeMarco and Paul Doyle, added in June 2025 for three-year terms to enhance the board's strategic oversight. The executive leadership team is led by President and Jana Mosley, who assumed the role on August 1, 2024, and is responsible for the corporation's overall strategy, operations, and alignment with shareholder objectives. Key executives include Vice President and Baoqin Guo, appointed effective May 12, 2025, overseeing financial planning and reporting; Vice President and Sheikh Nahyaan, managing day-to-day distribution and infrastructure activities; and other senior leaders such as Jodi Engel ( Vice President, Chief Human Resources and Safety Officer) and Diana Stephenson ( Vice President, ), who focus on human resources, safety, customer experience, and related initiatives. Toronto Hydro's governance practices adhere to the Ontario Business Corporations Act and relevant Canadian securities regulations, with the board operating under a formal mandate and charters for its standing committees, including , and Nominating, and Human Resources and Environment. The board emphasizes through the Committee's oversight of financial controls, ethical conduct via a Code of Business Conduct and Whistleblower Procedure applicable to all directors, officers, and employees since 2003, and integration, where the Human Resources and Environment Committee addresses environmental sustainability, health, and safety. Director nominations are handled by the and Nominating Committee using a skills and competencies matrix to ensure diverse expertise. As a wholly owned of the of , the corporation maintains shareholder accountability through annual reports, dividend declarations, and meetings with city officials to align on priorities such as service reliability, affordability, and community impact. The Shareholder Direction document from the outlines governance expectations, including board composition and performance evaluation, ensuring strategic decisions support public interests.

History

Formation and Early Development (1911–1940s)

Toronto Hydro-Electric System was established in 1911 following a public vote in 1908 that favored creating a municipal to provide affordable power to the city. The official inauguration occurred on May 2, 1911, when Sir , chairman of the Hydro-Electric Power Commission of , activated the system during a ceremony at Old City Hall, marking the start of public distribution in . This initiative built on earlier private efforts from the late , when first illuminated downtown stores and affluent homes using steam-powered dynamos. Initial infrastructure relied on hydroelectric power sourced from , transmitted over provincially controlled lines that first reached on February 24, 1911. To meet demand, the system constructed early substations and lines, enabling the expansion of electrical service to homes, businesses, and streets. By the , these developments supported innovations such as the launch of the city's first electrically powered trolley buses and the installation of electric traffic lights, enhancing mobility and safety. However, the decade also brought challenges, including a severe ice and sleet storm on March 31, 1926, which devastated lines in 's east end and caused widespread outages lasting up to 13 hours before full restoration by midnight. The of the 1930s significantly impacted operations, as electricity demand declined for the first time, prompting workforce adjustments from 44-hour to 40-hour work weeks and temporary layoffs that were reversed by 1940. By 1934, Toronto featured approximately 920 kilometers of paved streets, with about 800 kilometers illuminated by , mainly for sidewalks, reflecting gradual infrastructure growth amid economic constraints. During the 1940s and , Toronto Hydro prioritized conservation to support war industries, implementing measures such as securing substations with fences and designating operators as Special Constables for protection against potential attacks. The utility disconnected streetlighting, halted power to the during off-peak hours, reduced overall streetlighting by about 20 percent, and extended to minimize consumption, with resulting savings passed to customers through rate reductions. These efforts ensured reliable supply for essential wartime production while adhering to strict provincial power restrictions.

Post-War Expansion and Modernization (1950s–1990s)

Following the end of , Toronto Hydro experienced significant growth driven by the post-war baby boom and increased , leading to a 75% rise in kilowatt-hour consumption between 1945 and 1955. To accommodate this demand, the utility undertook major infrastructure expansions, including the construction of 12 new substations—some designed to blend into residential neighborhoods by resembling houses—and the rewiring of the entire electrical system from 25 cycles to the standard 60 cycles, which necessitated replacing over 200,000 meters. These upgrades modernized the distribution network, enabling it to support the burgeoning suburban development and rising household in . In the , Toronto Hydro launched promotional campaigns to encourage the adoption of , , and household appliances, capitalizing on the era's technological optimism as most homes acquired televisions and stereos, and workplaces shifted to electric typewriters. A major challenge came on January 13, 1968, when a severe of and snow caused widespread power outages across the city; over 500 Toronto Hydro employees volunteered for restoration efforts, working around the clock and earning the "Good Citizen Award" from local radio station CKEY for their dedication. The 1970s brought a shift toward amid the global crises, with Toronto Hydro introducing programs such as lowering nighttime temperatures in buildings, applying film to windows, and implementing load management techniques to reduce . At the start of the decade, the workforce stood at 1,159 employees, reflecting a stable and experienced team where 24% had over 25 years of service. This period marked an early emphasis on environmental awareness, balancing growth with efficiency measures to address escalating energy costs and supply concerns. By the 1980s, transformed operations as Toronto Hydro adopted computerized information systems, including a customized system that enabled remote monitoring, control, and faster emergency responses across the network. These advancements improved reliability and efficiency in managing the expanding grid. Entering the , the utility launched its in 1997 to enhance customer communication, followed by a pivotal on January 1, 1998, when Bill 103 amalgamated six municipal electric utilities into a single entity, expanding Toronto Hydro's customer base to approximately 650,000.

Restructuring and Innovation (2000s–Present)

In the early 2000s, Toronto Hydro navigated Ontario's deregulation, which began with the province's full market opening in May 2002 following the Energy Competition Act of 1998, allowing for competitive retail supply while Toronto Hydro focused on distribution services. As part of its response to these changes and growing environmental pressures, the company published its first sustainability report in 2001, outlining commitments to and reduced emissions. In 2002, Toronto Hydro erected a 100 kW wind turbine at , which began generating in December of that year, marking an early step toward integrating renewable sources into urban infrastructure and supplying green power to select customers. The rollout of smart meters commenced in 2004, aligning with provincial directives to install 800,000 units by 2007, enabling better and paving the way for advanced billing systems. During the 2010s, Toronto Hydro advanced its technological capabilities to enhance customer service and grid efficiency amid rising energy demands. In 2010, the company introduced Time-of-Use (TOU) pricing, shifting from flat rates to variable pricing based on peak and off-peak periods, which encouraged consumption shifts and was implemented province-wide under Ontario Energy Board oversight. That same year, an online outage map was launched to provide real-time visibility into power disruptions, improving transparency for over 800,000 customers. In 2012, the My Toronto Hydro® online portal was introduced, offering automated self-service features for bill management, usage tracking, and payments, which streamlined customer interactions. Also in 2012, Toronto Hydro partnered with Hydrostor to deploy the world's first underwater compressed air energy storage system off Toronto Island, serving as an urban pilot for balancing renewable intermittency with a capacity to store up to 2.5 MW, directly connected to the local grid. Entering the 2020s, Toronto Hydro has addressed surging electrification needs driven by electric vehicles (), heat pumps, and data centers, investing in grid upgrades to handle increased loads while integrating renewables. The company began deploying EV charging infrastructure in October 2020, partnering with the City of Toronto to install public stations, reaching a milestone of 500 public chargers energized in 2025, while connecting over 4,000 EV charging stations at buildings and residential homes that year to support urban mobility and reduce emissions. Ongoing grid modernization efforts include digital field technologies for and renewable integration, such as solar PV projects and pilots, as outlined in the 2021 Climate Action Plan, which targets net-zero operations by 2040. By 2025, Toronto Hydro has enhanced digital tools for , including AI-powered platforms like the Virtual Decarbonization Planning tool launched in partnership with OPEN Technologies, enabling building owners to simulate electrification retrofits and optimize energy use. The 2025–2029 investment plan emphasizes resilience against climate events, allocating funds for enhancements, underground cabling, and vegetation management to mitigate storm impacts and support distributed energy resources. These initiatives build grid capacity for a projected 50% demand increase by 2040, fostering a more adaptive and sustainable distribution network.

Operations

Electricity Distribution Network

Toronto Hydro-Electric System Limited (THESL), the operating subsidiary responsible for electricity distribution, receives bulk power at high voltages from the provincial transmission grid managed by , which sources generation primarily from (OPG) and other producers including renewables and nuclear facilities. This high-voltage electricity, typically at 44 kV to 230 kV, is then stepped down through THESL's of approximately 185 stations, including terminal and municipal substations, to medium voltages of 4.16 kV, 13.8 kV, or 27.6 kV suitable for local . From there, it travels via approximately 29,391 km of overhead and underground lines to distribution transformers that further reduce voltage to 120/240 V for safe delivery to end-users, including residential, commercial, and industrial customers. The distribution network covers the entire City of Toronto, spanning 630 square kilometers and serving approximately 3 million residents along with 796,000 customer accounts that include over 100,000 businesses and major institutions. This urban-dense territory handles a of up to 4,700 MW, reflecting the city's high consumption driven by , electrification trends, and economic activity, with annual delivery totaling around 24,155 GWh or about 18% of Ontario's . The system's scale supports 's role as Canada's largest city, ensuring power reaches diverse loads from high-rise condos to hospitals and transit systems without extending beyond municipal boundaries. Reliability is a core operational priority, with THESL targeting near-continuous service equivalent to 99.99% availability, as evidenced by historical performance metrics reported to the Energy Board (OEB). The OEB's annual scorecards track key indicators such as the System Average Interruption Duration Index (SAIDI), measuring average outage minutes per customer, and the System Average Interruption Frequency Index (SAIFI), counting outages per customer, with THESL achieving 1.29 interruptions (SAIFI) and 0.94 hours (SAIDI) in 2024. These metrics guide investments in grid hardening and rapid response, helping maintain high performance amid challenges like . To enhance grid stability and support Ontario's , THESL actively integrates distributed energy resources (DERs) such as rooftop photovoltaic systems and battery storage through programs like and Connection Impact Assessments for projects over 10 kW. This enables bidirectional flow, where excess renewable generation offsets local demand and reduces transmission losses, with the grid accommodating growing DER capacity—currently including contributions in the supply mix at 2.2% provincially—to mitigate peak loads and improve without compromising overall system reliability.

Infrastructure and Maintenance

Toronto Hydro's electricity distribution infrastructure consists of extensive physical assets designed to deliver power reliably across the city. These include 185,440 poles supporting the overhead , 15,349 kilometers of overhead wires, and 14,043 kilometers of cables that form the backbone of the system. Additionally, the utility maintains street circuits as part of its broader asset , ensuring illumination for public spaces. Maintenance practices at Toronto Hydro emphasize proactive strategies to sustain asset integrity and minimize outages. The utility conducts annual inspections and condition assessments of equipment, which have significantly reduced incidents such as oil spills from 307 in 2019 to 46 in through timely replacements. Vegetation management is a key component, involving the pruning of approximately 73,300 trees in via a pilot program using to target outage-prone areas in regions like and . Underground cable replacements focus on transitioning from to padmount transformers, enhancing reliability and mitigating risks from and flooding. To bolster resilience against events, Toronto Hydro has implemented measures such as installing over 100 network vault structures equipped with monitoring for oil leaks and flooding, alongside hardening for storms and floods. The has addressed major events, including those between 2018 and 2022 that affected 624,000 customers, by enhancing grid capabilities. Investments in technologies, including 500 SCADA-enabled devices for remote operations and pilots for fault location, isolation, and service restoration (FLISR), enable rapid fault detection and self-healing functionalities. Capital investments support these efforts, with Toronto Hydro allocating approximately $1.18 billion annually (totaling $5.9 billion over 2025-2029) for upgrades, including $1.82 billion for sustainment of aging assets, $1.02 billion for , and $651 million for modernization initiatives, such as weather-resilient equipment and digital technologies. These expenditures ensure the network's capacity to handle growing loads from electric vehicles and distributed resources while adapting to environmental challenges.

Services and Customer Engagement

Core Services for Customers

Toronto Hydro provides essential electricity services to approximately 796,000 customers in the City of , encompassing residential, , and users. These core services focus on reliable delivery, convenient billing, efficient connections, rapid outage response, and targeted support for vulnerable households. All electricity rates, including Time-of-Use (TOU) pricing, are regulated and set annually by the Energy Board (OEB), ensuring transparency and affordability across customer segments. Billing and payment options are designed for ease and flexibility, with TOU rates varying by time of day to encourage off-peak usage—typically lower during evenings, weekends, and holidays—as of November 1, 2025. Customers can enroll in pre-authorized debit (PAD) for automatic payments or opt for electronic bills (eBills) to avoid postal delays, and most financial institutions offer online bill payment. The My TorontoHydro® online portal, launched in the , enables 24/7 account management, including real-time usage tracking, bill history review, and payment processing, enhancing customer control over consumption. Billing accuracy exceeds 99%, with any disputes resolved through dedicated support channels. For new connections and upgrades, Toronto Hydro handles service installations, meter readings, and capacity expansions to meet customer needs, such as for high-demand industrial operations. Residential and new services are connected within five business days in 99.9% of cases, with no cost for standard meter replacements under the ongoing upgrade program. Customers submit requests via the online service portal or by phone, and upgrades for commercial users often involve assessments to ensure grid compatibility. Meter readings are automated via , providing accurate data for billing while supporting . Outage management is a , with 24/7 response teams deployed for rapid restoration. Customers report outages via phone, the Toronto Hydro , or the website's Outage , which offers real-time maps, affected customer counts, and estimated restoration times. In , the system average interruption duration (SAIDI) was 0.94 hours per customer annually—translating to an average restoration under two hours per sustained outage when excluding major events. These efforts minimize disruptions from weather, equipment failures, or other causes. Support programs target low-income customers to ensure equitable access, including the Ontario Electricity Support Program (OESP), which provides monthly on-bill credits based on household income and size. The Low-income Energy Assistance Program (LEAP) offers one-time grants up to $500 for arrears or reconnection, while the Emergency Energy Fund assists with urgent needs like preventing disconnections. Energy efficiency rebates are available through initiatives like the Home Assistance Program (HAP), which installs free or low-cost measures such as LED lighting and for eligible renters, and the Assistance Program, providing no-cost cold-climate heat pumps to income-qualified households. These programs, often in partnership with the City of and provincial agencies, help reduce bills and promote conservation.

Sustainability and Community Initiatives

Toronto Hydro has committed to achieving net-zero greenhouse gas emissions by 2040, aligning with the City of Toronto's broader climate objectives through strategies focused on and integration. This target emphasizes reducing 1 and 2 emissions, with the company reporting an 8% decrease in these emissions in 2022 compared to 2021 and a 40% reduction relative to the 2018 baseline, primarily driven by fleet and building efficiency upgrades. In 2023, 1 SF6 emissions were reduced by 22% compared to 2022. Since 2001, Toronto Hydro has published annual and environmental performance reports, providing transparency on progress toward these goals and tracking metrics such as use and emissions reductions. In innovation projects, Toronto Hydro has partnered with organizations like Plug'n Drive and Elocity Technologies to launch the Electric Vehicle Smart Charging Pilot Program, which installs free hyper-integrated chargers for residential customers to optimize grid load and promote adoption. The company has also conducted pilots, including a world-first underwater system in 2015 to enhance power quality and a pole-mounted storage initiative with Ryerson in 2017 to support management. Additionally, since its installation in December 2002, the 750 kW at has generated renewable electricity equivalent to powering about 75 homes annually. Community efforts include educational programs such as free energy coaching services, offered in collaboration with the City of , to guide residents on home energy assessments, clean heating upgrades, and conservation techniques that reduce consumption and emissions. Toronto Hydro supports transit electrification by partnering on EV charging infrastructure projects that facilitate broader transportation decarbonization, including initiatives aligned with regional efforts like Metrolinx's GO Expansion Program. The company also contributes to urban greening through programs like the Green Choice Customer Assistance initiative, which provides low- or no-cost retrofits to improve building efficiency and support environmental enhancements in Toronto neighborhoods. Looking to 2025, Toronto Hydro's initiatives include expanding the grid under its 2025-2029 investment plan to better integrate renewables, such as through new transformer stations and technologies that accommodate increased and inputs while maintaining reliability. Complementing this, the company advances diversity and inclusion programs in its workforce, building on commitments to equitable hiring and training as outlined in its reporting, to foster a representative team driving sustainable operations. These efforts are supported by ongoing infrastructure adaptations that enable seamless incorporation of clean energy solutions.

Awards and Recognition

Industry and Innovation Awards

Toronto Hydro has garnered recognition for its contributions to technological advancements and in the electricity sector, particularly through awards highlighting IT innovation, developments, and sustainable practices. In 2025, the company achieved its first win at the CIO Awards , earning accolades for excellence in IT innovation with its GenAI —a generative -powered designed to assist operations and teams by providing rapid access to critical , thereby enhancing in customer tools and management. Later that year, Toronto Hydro received the Energy Association Innovation Award for its leadership in advancing solutions and technologies, exemplified by upgrades to generative tools and systems that improve efficiency and reliability. The previous year, in 2024, Toronto Hydro was honored as a Sustainable Electricity Leader™ by Electricity Canada, acknowledging its comprehensive sustainable strategy that emphasizes the integration of sources into the distribution network to support environmental goals and long-term operational resilience. Among earlier achievements, Toronto Hydro earned the 2015 Ontario Electrical Safety Award from the Electrical Safety Authority for its leadership in consumer safety, driven by innovative awareness campaigns that educated the public on electrical hazards and promoted safer home practices. During the , the company received commendations for pioneering , beginning with its inaugural report in 2001, which set standards for in environmental performance; this effort culminated in the 2010 Canadian Electricity Association Social Responsibility Award for the "Get Smart Toronto" initiative, which innovatively communicated the rollout of smart meters to customers.

Safety and Corporate Responsibility Awards

Toronto Hydro has been recognized for its commitment to workplace safety through the Canada's Safest Employers Gold Safety Award, which it received in the Utilities and Electrical category in 2017. This accolade highlights the utility's low lost-time injury frequency rates and robust employee training programs, including ongoing safety education and risk management initiatives that contribute to a strong health and . In the realm of corporate responsibility, Toronto Hydro ranked 6th in Corporate Knights' 2025 Best 50 Corporate Citizens in , earning praise for its (ESG) performance. The ranking underscores the company's progress in reducing through projects and its positive community impact via initiatives like affordable energy programs and Indigenous partnerships. For electrical safety outreach, Toronto Hydro was awarded the 2015 Ontario Electrical Safety Award in the Consumer and Home Safety category by the Electrical Safety Authority. This recognition commended the utility's public education campaigns and prevention efforts, such as interactive workshops and awareness programs aimed at reducing electrical hazards in residential settings. Additionally, Toronto Hydro earned the 2025 Ted Rogers Co-op Employer Award from the Ted Rogers School of Management at , celebrating excellence in co-op programs that emphasize safety training and responsible mentorship for students. The award reflects the company's structured approach to integrating young workers into safe work environments while fostering ethical leadership and community-oriented practices.

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