corporate responsibility report 2012 THE MEASURE OF OUR COMMITMENT OUR WORLD. OUR CITY. OUR RESPONSIBILITY. highlights brochure HIGHLIGHTS brochure I 2012 corporate responsibility report 1
2 HIGHLIGHTS brochure I 2012 corporate responsibility report
About This Report This report was prepared in accordance with the Sustainability Reporting Guidelines developed by the Global Reporting Initiative, and includes additional disclosures required by the Electric Utilities Sector Supplement. For more information, please visit torontohydro.com/responsibility Our Corporate Responsibility Philosophy Our world. Our city. Our responsibility. We believe that it s our utility s responsibility to do its part to build a cleaner, greener and brighter city. We set out to achieve this by providing safe and reliable service in a cost-effective and environmentally responsible way. Our business strategy is founded upon the following four pillars: $ People Financial Operations Customer We strive to foster a fully engaged, safe and healthy workforce that meets the changing requirements of our business. We aim to meet the financial objectives of our shareholder, the City of Toronto. We work to improve reliability through optimal and sustainable system management. Our goal is to provide value for money. Our promise Provide a healthy and safe workplace Develop a skilled and knowledgeable workforce Keep our workforce engaged and productive Our promise Provide a fair return to our shareholder Continue to increase shareholder value Our promise Keep the lights on Keep our system safe Build a grid that supports a modern city in an environmentally responsible manner Maintain aboveaverage productivity Our promise Provide long-term value for rate payers Make it easy to work with us Help customers conserve energy Provide customers with tools and technology to maximize the benefit they receive from their electricity service HIGHLIGHTS brochure I 2012 corporate responsibility report 3
Corporate Overview $2.6 WE OWN AND OPERATE BILLION OF CAPITAL ASSETS HEAD OFFICE 14 CARLTON STREET TORONTO, ONTARIO M5B 1K5 637,910 RESIDENTIAL CUSTOMERS 52 LARGE USERS WITH MONTHLY DEMAND OVER 5000 KILOWATTS 719,000 80,699 CUSTOMERS GENERAL SERVICE CUSTOMERS WITH MONTHLY DEMAND OF 0-5000 KILOWATTS 1,540 EMPLOYEES 2 LABOUR UNIONS 617,302 CUSTOMER CALLS 4 HIGHLIGHTS brochure I 2012 corporate responsibility report - CANADIAN UNION OF PUBLIC EMPLOYEES (CUPE LOCAL ONE) - THE SOCIETY OF ENERGY PROFESSIONALS
7 1 CONTROL CENTRE 572 VEHICLES IN FLEET 169 15,100 MUNICIPAL SUBSTATIONS KILOMETRES OF OVERHEAD WIRES 10,800 20,400 KILOMETRES OF UNDERGROUND WIRES PRIMARY SWITCHES 0 S OPERATION CENTRES 60,650 DISTRIBUTION TRANSFORMERS 174,700 POLES 4,830 MEGAWATTS OF PEAK LOAD ON JULY 17, 2012 REPRESENTING APPROXIMATELY 19% OF THE PROVINCIAL DEMAND STEELES AVENUE HIGHWAY 427 TORONTO HYDRO S SERVICE AREA LAKE ONTARIO PICKERING TOWN LINE HIGHLIGHTS brochure I 2012 corporate responsibility report 5
OUR SERVICES We know that our customers rely on electricity at work and at home, and we re committed to delivering reliable service in a safe and efficient manner. In 2012, we delivered our third largest capital construction program on record to renew aging infrastructure across the city. Our Reliability Record Toronto Hydro evaluates service reliability through two main measures: S M T W T F S Cleaning Up Hurricane Sandy Hurricane Sandy swept through Toronto in late October and was one of the worst storms on record. The high winds and extreme weather made emergency response efforts difficult. In spite of this, it was one of the fastest restoration times in our history. Sandy s Impact 25 MILLIMETRES OF RAIN IN TORONTO 28.19min SAIDI IMPACT 147 CIRCUIT BREAKER OPERATIONS ACROSS 90 FEEDERS 17,000 CALLS INTO OUR INTERACTIVE VOICE RESPONSE SYSTEM 218,000 CUSTOMERS LOST POWER AND OF THOSE, 65,000 EXPERIENCED SUSTAINED OUTAGES 6 HIGHLIGHTS brochure I 2012 corporate responsibility report
Construction and Maintenance Work When our utility was founded in 1911, Toronto s population was 376,471. Today, approximately 2.8 million call Toronto home, and several hundred thousand more commute into our city to work every day. We re working to build a reliable distribution system that meets the needs of our growing city today, tomorrow and beyond. In 2012, we completed 138 capital construction projects IN 2012, WE COMPLETED 138 PROJECTS The Cost of a Reliable Distribution Grid Replacing our aging distribution equipment is a costly endeavour. Toronto Hydro needs to invest approximately $3.2 Billion to replace assets past their expected useful life. We have developed a long-term capital plan to address this and will continue to submit applications to the Ontario Energy Board (OEB) to secure the funding to complete these upgrades. 28% $3.2B ASSETS PAST END-OF-LIFE 20% $2.4B ASSETS WILL REACH END-OF-LIFE BY 2024 52% $6.1B ASSETS PRIOR TO END-OF-LIFE HIGHLIGHTS brochure I 2012 corporate responsibility report 7
Intensification and Load Growth in the Downtown Core Toronto was recently named the fourth largest city in North America. The boom continues with more than 50,000 condominium units under construction. The development is concentrated in the downtown core and along the waterfront. According to the City of Toronto s report, How Does the City Grow?, Toronto s population is expected to swell to 3.08 million by 2031. Here are some highlights from the report: 62,437 NEW RESIDENTIAL UNITS WERE CONSTRUCTED (2007-2011) 45% 31% OF THE RESIDENTIAL UNITS OF THE NON- RESIDENTIAL UNITS ARE SLATED FOR CONSTRUCTION IN THE DOWNTOWN AND CENTRAL WATERFRONT AREA 106,000 UNITS + Source: How Does the City Grow?, City of Toronto report Putting Customers First 2.51 MILLION m 2 OF PROPOSED NON-RESIDENTIAL FLOOR SPACE ARE UNDER REVIEW OR APPROVED BUT NOT YET BUILT Our customers want service at their fingertips, 24/7, and we re committed to making it easy to do business with us. Last year, we launched a new customer self-service portal and increased engagement online. My TorontoHydro TM We launched a customer self-service portal in August to simplify the most frequent service transactions for customers. Transactions that required a call to a Toronto Hydro customer service representative can now be completed conveniently online. At the end of 2012, we had more than 17,800 registrations, exceeding our target by 10 per cent. 8 HIGHLIGHTS brochure I 2012 corporate responsibility report
Our Workforce Toronto Hydro has worked hard to develop a corporate culture committed to safety. We are continually evaluating our policies and procedures and taking strides to improve our health and safety processes. Training and Development Various training programs are available for employees to ensure the continuous development of our people. 2012: 7,500 employee training days Renewing our Workforce 650 EMPLOYEES (OVER 40% OF OUR WORKFORCE) WILL BE ELIGIBLE FOR RETIREMENT OVER THE NEXT 10 YEARS MANAGEMENT CUSTOMER CARE ACCOUNTING 40% 60% 9% TECHNICAL 38% TRADES 11% SUPERVISORY 2% ENGINEERING HIGHLIGHTS brochure I 2012 corporate responsibility report 9
Achieving ISO 14001 and OHSAS 18001 Certification One of our goals was to achieve certification of our integrated Environment, Health and Safety Management System to the international standards ISO 14001 and OHSAS 18001. Through commitment by staff at all levels, supported by an organization-wide engagement and communication plan, we successfully completed the required audits and received confirmation of certification in early 2013. 3 MILLION IHSA A Corporate Culture Built on Safety We re proud to have received the Infrastructure Health and Safety association (IHSA) President s Award in 2012 for three million hours worked without a lost time injury. We continue to develop communications and training programs to raise awareness and educate employees about injury prevention. Safety Results We have reduced total recordable injury frequency in the workforce by more than 66 per cent since 2007. A recordable injury is defined as any occupational injury/illness that results in an employee experiencing a fatality, lost time, medical treatment and/or other (restricted work, significant occupational injury, loss of consciousness). We achieved 2.15 days per 200,000 hours worked in 2012. Lost Time Injury Severity (based on the total number of days lost beyond the day of the injury) declined by 16 per cent in 2012 and is 1.34 days lost per 200,000 hours worked, well below the Canadian Electricity Association (CEA) average of 15.96 days lost per 200,000 hours worked. Lost Time Injury Frequency Rate reduced by 62 per cent based on the total number of lost time injuries related to occupational injuries in the calendar year. In 2012, Toronto Hydro s rate was 0.06 lost time injuries per 200,000 hours worked, which was well below the CEA average of 0.79 per 200,000 hours worked. 10 HIGHLIGHTS brochure I 2012 corporate responsibility report
Our Environmental Initiatives At Toronto Hydro, informing our customers about conservation programs, supporting the City s urban tree canopy, and doing our part to reduce the risk of environmental spills and other impacts of our business, are all in a day s work. Conservation and Demand Management Goal: Save 1,304 GWh energy and 286 MW summer peak demand savings between 2011 2014. Progress: 1,034 GWh energy and total demand reduction of 103 MW*. Conservation Program Results As a registered participant, Toronto Hydro receives funding from the Ontario Power Authority (OPA) to deliver its saveonenergy OM conservation and demand management (CDM) programs within Toronto Hydro s service territory. Through this funding model, Toronto Hydro invested approximately $28.3 million in CDM programs last year. Total 2012 Results*: 116,900 MWh and a total demand reduction of 53.2 MW *Please note: Figures provided are unaudited. Final results will be available in 2014 following an audit by the OPA. City-owned Buildings Get an Injection of Solar Power In 2012, the City of Toronto and Toronto Hydro launched the first phase of a joint Solar Photovoltaic (PV) Project. The electricity is purchased under the terms of Feed-in Tariff (FIT) contracts with the OPA, and at least 60 per cent of the PV equipment is made in Ontario, which helps support the growth of the solar energy industry locally. HIGHLIGHTS brochure I 2012 corporate responsibility report 11
Our Community Outreach Whether it was donning pink wigs and running for breast cancer or growing moustaches for men s health, in 2012 Toronto Hydro employees once again demonstrated their commitment to causes that matter. Together, our staff, suppliers, friends and families raised more than $380,000 for charities across the city. Lending a Hand to United Way Toronto Hydro employees are strong supporters of United Way Toronto. We executed another successful campaign in 2012, raising approximately $335,000. Since 2005, our employees and suppliers have generously donated approximately $1.7 million to United Way Toronto. Celebrating Men s Health with Movember Toronto Hydro employees showed their support for prostate cancer and men s mental health. More than 168 employees, friends and family members registered to raise funds for Movember. With individual fundraising efforts and the Brighter Days Matching Program, we collectively raised more than $23,000 for Movember Canada. Supporting Breast Cancer Research Approximately 80 employees, friends and family participated in the 2012 Canadian Breast Cancer Foundation CIBC Run for the Cure. In total, we donated approximately $17,000, surpassing our 2011 contribution by 40 per cent. 12 HIGHLIGHTS brochure I 2012 corporate responsibility report
Putting a Spotlight on Neighbourhood Safety with Brighter Nights TM Toronto Hydro co-hosted 17 Brighter Nights TM community events to help increase safety and energy efficiency in neighbourhoods across the City. The program, formerly known as Light the Night, is a joint effort with the City of Toronto s Community Crisis Response Program, Toronto Community Housing, the Toronto Police Service and local volunteers. Supporting Employee Volunteerism Our Brighter Days Matching Program continued throughout 2012 and 186 employees participated. The program benefited a range of charitable causes including children s sports and various non-profit health associations. The Corporation matched individual employee donations made to registered charitable organizations up to a maximum of $200 annually. Assisting Low Income Customers Toronto Hydro delivers the Low-Income Energy Assistance Program (LEAP) developed by the Ontario Energy Board. This grant program helps families and individuals living below the poverty line with their overdue electricity bills. In 2012, LEAP helped approximately 1,250 households with electricity bill payments. For more information, please visit torontohydro.com/leap HIGHLIGHTS brochure I 2012 corporate responsibility report 13
OUR ECONOMIC PERFORMANCE We strive to make a positive contribution to the City of Toronto by maintaining financial strength and delivering value to our rate payers. Highlights of our Financial Performance: *The Corporation s consolidated financial statements were prepared in accordance with Part V of Canadian GAAP until December 31, 2011. Selected financial information from comparative consolidated financial statements for 2011 have been adjusted retroactively from the consolidated financial statements previously filed to conform to the presentation of the Corporation s 2012 consolidated financial statements prepared in accordance with US GAAP. Our 2012/2013 Rate Application The Ontario Energy Board approved our investment program which is intended to enhance safety and reliability of the distribution system for the benefit of customers. The decision provides for capital spending to address aging electricity distribution infrastructure, and allows for the construction of a new transformer station in downtown Toronto to relieve existing stations and provide for future load growth in the area. The new station will be the first transformer station built in downtown Toronto in many decades. Productivity Our financial strength is a credit to the productivity and efficiency gains we have made year over year since our amalgamation in 1998. We are committed to delivering value to all of our stakeholders and financial prudence is a large part of how this is accomplished. 14 HIGHLIGHTS BROCHURE I 2012 CORPORATE RESPONSIBILITY REPORT
HIGHLIGHTS brochure I 2012 corporate responsibility report 15
This report is available in a full-length PDF and a condensed highlights brochure. Both versions can be downloaded from our website at torontohydro.com/responsibility. We welcome your input about this report. Please send feedback to sustainability@torontohydro.com Inquiries can also be directed to: Vice-President Marketing, Communications and Public Affairs Toronto Hydro 14 Carlton Street Toronto, ON M5B 1K5 Produced by Corporate Communications 16 HIGHLIGHTS brochure I 2012 corporate responsibility report