Toronto Hydro 2007 Corporate Responsibility Report

Building trust Toronto Hydro Corporation | 2007 Corporate Responsibility Report

table of contents

1

Introduction Introduction Message from the President & CEO About Toronto Hydro Methodology & Assurance

9

Social Commitment Community Involvement Expenditures Average Duration of Customer Power Interruptions Average Number of Customer Power Interruptions

17

Environmental Responsibility Reportable Environmental Incidents Conservation & Demand Management

25

Economic accountability Operating Expenses Revenues

31

Appendices Corporate Structure Board of Directors Other Types of CR Indicators Environment, Health & Safety Policy Code of Business Conduct Sample Process Data Map Key Stakeholders CR Team CR Contact Information

Introduction

Social Commitment

Environmental Responsibility

Economic accountability

Appendices

Introduction This is Toronto Hydro Corporation’s first Corporate Responsibility (CR) report.

The report is divided into three key sections: Social Commitment, Environmental Responsibility and Economic Accountability. Each section is set off from the next, graphically, by use of chapters and colour codes; each includes details of how the company performed relative to a series of performance indicators (see definition on page 7).

Some of the highlights in each section are represented in the form of charts and graphs; others are described anecdotally.

Lastly, each section includes the name of the relevant Board Committee, including Company Directors with oversight responsibilities on that Committee.

For example, in the Environmental Responsibility section, the Board Committee responsible is the Environment, Health and Safety Committee; and the names of the appropriate Directors are listed.

Moving from one section of the report to the next, the reader will notice examples of where the broad categories of social, environmental and economic

responsibility overlap. A case in point is Toronto Hydro-Electric System Limited’s Conservation and Demand Management (CDM) programs.

While the financial controls and the environmental results of its CDM expenditures are subject to regulatory oversight by the Ontario Energy Board, and contractual oversight by the Ontario Power Authority, clearly the resulting social impacts are not. Sometimes what happens outside the ‘regulatory’ box is just as important; and where there are noteworthy examples of such overlaps, they are referenced.

Also of interest are indicators such as ‘Energy Efficiency’, ‘Total Waste’, and ‘Zero Injury’ — areas where significant progress has been made.

The reason these indicators are not included amongst the list of assured indicators stems from the fact that the harmonization of these processes and the development of one common set of standards are still underway, following the amalgamation of six local utilities into Toronto Hydro Corporation in 1998. It is likely that once a common set of practices is

developed, and related process maps are created, they too may become assured indicators.

As a final note, there are areas in this report that point towards the development of new indicators which may be selected for future Corporate Responsibility reports. ‘Customer Satisfaction’, ‘Procurement & Supply Chain’, ‘Greenhouse Gases’, ‘Stakeholder Engagement’, and ‘Volunteerism’ are examples where Toronto Hydro is doing the ‘right’ thing now, based on its Code of Business Conduct, but where for the time being at least, no formal measures exist to capture results and progress.

As noted in the Message from the President and CEO, this first Corporate Responsibility report represents a snapshot of Toronto Hydro’s efforts to define and come to terms with CR reporting.

It is not the end of the company’s journey in this regard; rather, it is a beginning that points to many different avenues which Toronto Hydro will pursue in its goal of becoming fully sustainable.

2007 Corporate Responsibility Report | 1

Message from the President & CEO The promise that we make to our customers is that whenever they flip the switch, the lights come on.

We deliver on this and other promises, big and small, every day, and yet it took many months for us to determine how best to report on these commitments, and indeed, what their impact really is on the communities we serve. This — our first Corporate Responsibility report — reflects our thinking on the matter of keeping the promises we make, in other words, of building and maintaining the public trust.

We are one of the largest local electricity companies in Canada, operating in the country’s largest city, and we know how important it is to keep a promise.

It all starts with providing our customers with a reliable and safe source of electricity, at a fair price.

It means ensuring our workplaces are safe, so our employees know they will return home injury-free after every shift.

It means giving back to the community, finding ways to support our employees’ volunteerism initiatives and building stronger communities through our joint efforts.

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It means coming to the table with our many stakeholders on the issues that are important to them, including the environment.

And it means managing our financial and human resources prudently and contributing to our Shareholder’s goal of making Toronto a world-class city.

With this report, we have for the first time taken a systematic approach to ‘measuring’ the results of these promises. Our success relative to specific commitments — referred to here as indicators — is what we call our sustainability performance.

Through the process of defining how we measure up, we have come to two important conclusions. First, in order to be truly sustainable, Corporate Responsibility indicators must be fully integrated into a company’s corporate strategy.

Secondly, top tier companies must walk their talk. And so, as a demonstration of our commitment, in 2008, we are exploring ways to achieve and maintain a zero footprint for our operations. How we came to these conclusions is outlined in the

Introduction

Social Commitment

Environmental Responsibility

Economic accountability

Appendices

Our sustainability goal marks an important attitudinal shift within Toronto Hydro.

Methodology & Assurance section that begins on page 6.

Our sustainability goal marks an important attitudinal shift within Toronto Hydro. With the amalgamation of the former Metropolitan Toronto utilities ten years ago, and parallel restructuring of the provincial electricity industry, we learned how to adapt to rapid and unprecedented change, and use it to our strategic advantage. There were many positive outcomes to this process, including an improved workplace safety record, constructive labour relations and a re-invigorated corporate culture based on collaboration and teamwork.

That spirit, combined with the discipline required to work effectively within a regulated environment and the determination to continually improve our performance, have put us in a good position to move to the next level of sustainability reporting.

One final note. In late 2005, the Environment, Health and Safety (EHS) Committee of the Board directed us to move forward with an exploration of Corporate Responsibility reporting. My thanks

to our cross-functional ‘CR Team’ which, I believe, has met the challenge put to us by the EHS Committee and developed a unique and compelling approach. I see this report as the first of many, each one building on the next, as the list of indicators grows to reflect our strategic imperatives, as well as the expectations of our many stakeholders.

David S. O’Brien President and Chief Executive Officer Toronto Hydro Corporation

2007 Corporate Responsibility Report | 3

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Introduction

Social Commitment

Environmental Responsibility

Economic accountability

Appendices

About Toronto Hydro Toronto Hydro Corporation operates three wholly owned affiliates, all located in Toronto, with a combined work-force of 1,720 people.

Total revenues in 2007 were $2.39 billion.

The electricity distribution company — Toronto Hydro-Electric System Limited ­— is a regulated monopoly that holds 90 per cent of the Corporation’s assets and accounts for 97 per cent of gross revenue. In 2007, it served 680,000 residential and commercial customers across the Greater Toronto Area, representing approximately 18 per cent of electricity consumption in the Province of Ontario.

Toronto Hydro Energy Services Inc. is an energy services company.

It provides energy efficiency, energy management, energy conservation and renewable generation expertise to commercial and industrial customers throughout the Greater Toronto Area. Toronto Hydro Energy Services also manages the street lighting and expressway lighting assets within the City of Toronto, which includes over 160,000 fixtures.

Toronto Hydro Telecom Inc. is a data services provider that offers a full suite of managed network services including Private Line and Ethernet metroLAN, data security and recovery to many of Canada’s leading

Award-winning Some of the awards that Toronto Hydro won in 2007 include:

businesses and financial institutions.

Toronto Hydro Telecom also operates an extensive fibre optic network; and in March 2006, it leveraged this key corporate asset to deploy the largest urban WiFi network of its kind, called One Zone™.

How we define sustainability In 2007, Toronto Hydro was selected for the third year in a row as one of Canada’s Top 100 Employers.

We are very proud of this achievement and will continue to strive to improve the communities we serve in the years ahead.

As one of the leading electricity conservation organizations in Ontario, we are also working to develop cleaner electricity generation projects for the benefit of Toronto residents.

Workplace safety, employee engagement, solid financial performance, environmental responsibility, and our Brighter Days program are all evidence of our sustainable business practices.

2007

2007 Corporate Responsibility Report | 5

metHodology & assuRanCe the methodology used in the development of toronto Hydro’s 2007 Corporate Responsibility report is unique. a few points are worth noting.

While Toronto Hydro published performance reports in both 2002 (Report towards Excellence) and 2004 (Delivering Excellence), neither represented a comprehensive portrayal of the company’s corporate responsibility activities. nor were the performance indicators highlighted in those reports assured by independent third parties.

This report is different in two important respects.

First, it tracks Toronto Hydro’s performance against seven key indicators — indicators that have been assured by pricewaterhouseCoopers LLp. It also follows Toronto Hydro’s progress against a further 11 indicators. The indicators fit into the three standard categories of Corporate Responsibility reporting, namely: economic, environment, social.

The second unique aspect of this report is the process by which the indicators were identified and the manner in which they are presented in this report. specifically, the CR reporting process was driven from the bottom up, and relied heavily on input from

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Introduction

Social Commitment

Environmental Responsibility

Economic accountability

Appendices

What is an indicator?

An ‘indicator’ is a measure of status or performance. An ‘assured’ indicator confirms that the value of the indicator contains no significant errors or omissions.

Toronto Hydro’s employee ‘subject matter experts’. Bringing internal experts to the table was also a first step in the process of raising awareness for Corporate Responsibility with the rest of the company, including the Executive Team.

Here’s how the process began. In late 2005, the Environment, Health and Safety Committee of Toronto Hydro’s Board of Directors asked the President and Chief Executive Officer to determine how corporate responsibility reporting might become a priority. It was determined that an internal, cross-functional team of employees was the most expedient way to address the Committee’s request. The new CR team comprised approximately 30 employees, from managers to vicepresidents, across eight departments.

In January 2007, the team set to work with two clear objectives: produce a list of measurable performance indicators — rather than arbitrary ‘success’ stories — and use an outside resource to provide assurance on selected indicators.

With these goals in mind, the team participated in a series of workshops which taught them the basic principles of corporate responsibility, including the methods and importance of the assurance process.

A key aspect of the training process was a discussion about indicators. The indicator framework was explained, including Domain, Issue, Goal, Hybrid (Goal/Issue) and Casual models. The Global Reporting Initiative was also discussed, as was the Dow Jones Sustainability Index, FTSE4Good and Jantzi Social Index.

The team’s first cut yielded a series of 42 indicators; and after much discussion, the list was reduced to a more focused and manageable 18 indicators. In the ensuing months, process maps were developed for each indicator; and in late August, performance information was collated. An example of a process map is included on page 36.

By September 2007, the team was ready to start interpreting the results. Team members wanted to see what the indicators said about

Toronto Hydro. Did they ‘prove’ that Toronto Hydro was the solid ‘poles and wires’ company it portrayed itself as; or did the indicators point to something else? In other words, did the indicators tell the whole story, or even a relevant part of the story?

Were there other themes in Toronto Hydro’s narrative, as yet untold, that required further investigation?

In searching for answers to these questions, the team decided to use the company’s 2006 activities as a litmus test; and a preliminary Corporate Responsibility report was presented to Toronto Hydro Corporation’s Board of Directors in November 2007. The Board approved that report, and the process that was behind it, and asked the Executive Committee to direct staff to proceed with development of Toronto Hydro’s first public Corporate Responsibility report, which is presented in the pages that follow.

2007 Corporate Responsibility Report | 7

the CR reporting process was driven from the bottom up.

2007 Assured Indicators Social Community Involvement Expenditures Average Duration of Customer Power Interruptions Average Number of Customer Power Interruptions Environment Reportable Environmental Incidents Customer Electricity Conservation & Demand Management

Independent Reviewers’ Report To the Board of Directors and Management of Toronto Hydro Corporation.

We have reviewed the selected quantitative performance indicators presented in Toronto Hydro’s Corporate Responsibility Report (the Report) for the year ended December 31, 2007. Toronto Hydro management is responsible for collection and presentation of the indicators and information within the Report. Our responsibility is to express a conclusion as to whether anything has come to our attention to suggest that the selected quantitative performance information is not presented fairly in accordance with relevant criteria.

The scope of our review included the following performance indicators: • Customer Electricity Conservation and Demand Management • Average Duration of Customer Power Interruptions

Economic Operating Expenses Revenues

• Average Number of Customer Power Interruptions

Other Types of Indicators*

• Operating Expenses

Social Absenteeism Average Temporary Accommodated Days per Accommodated Employee Call Centre Customer Service Telephone Response Time & Response Quality Emergency Response Time Total Employee Benefits Total Number of Employees Zero Injury Environment Fines and Penalties Energy Efficiency Total Waste Economic Average Monthly Residential Bills

• Community Involvement Expenditures • Reportable Environmental Incidents • Revenues

Our review was made in accordance with the International Standard on Assurance Engagements (ISAE) 3000, developed by the International Federation of Accountants. As such, we planned and performed our work in order to provide limited, rather than absolute, assurance with respect to the selected quantitative information that we reviewed. Our review criteria were based on Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (2006 version), relevant regulations, Toronto Hydro management definitions, and industry standards as referenced in the Report. Our review consisted primarily of enquiry, analytical procedures and discussion related to information supplied to us by Toronto Hydro.

A review does not constitute an audit and consequently we do not express an audit opinion on the quantitative performance indicators.

Based on our review, nothing has come to our attention that causes us to believe that the selected performance indicators noted above are not, in all material respects, calculated and presented in accordance with the relevant criteria. We also concluded that the Revenue and Operating Expenses information presented on page 27 of this Report is consistent with the Revenue and Operating Expenses information presented in Toronto Hydro Corporation’s 2007 financial statements, which are audited by Ernst & Young LLP.

*See definitions on page 34.

PricewaterhouseCoopers LLP Toronto, Ontario, Canada May 26, 2008 8 | Toronto Hydro Corporation

Community Involvement Expenditures | Average Duration of Customer Power Interruptions | Average Number of Customer Power Interruptions

SocialCommitment

social Commitment whether it’s wires, fibre optic cables or street lights, toronto Hydro’s core business is managing grids – and its competencies in civil, mechanical and electrical engineering are the foundation upon which all of its operational activities rest.

But what happens when the discipline that it takes to manage a grid is applied to community building? The following section focuses on three key social indicators, highlighting where they overlap — and how they interact — with related economic issues.

The ‘Community Involvement expenditures’ indicator reflects Toronto Hydro’s financial contributions to the community. other non-financial activities are also reported on in this section, in view of the company’s long-standing commitment to community involvement and to volunteerism.

The other two indicators in this section are related to system reliability.

They are included in the ‘social Commitment’ section because of the enormous impact a reliable and safe system has on customers’ daily lives, on their well-being and economic confidence.

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Introduction

Social Commitment

Environmental Responsibility

Economic accountability

Appendices

assured indicator #1

Community Involvement Expenditures definition | Charitable donations made to community-based organizations, including expenditures and donations. This indicator does not include in-kind contributions and department operational costs. It does include memberships and support activities. assured indicator #2

Average Duration of Customer Power Interruptions definition | Average system interruption duration for metered customers served per year (also called System Average Interruption Duration Index, SAIDI).

assured indicator #3

Average Number of Customer Power Interruptions definition | Average number of interruptions per metered customer per year (also called Average Interruption Frequency Index, SAIFI).

Community Involvement Expenditures There are many reasons why it is important for large companies to invest in the communities in which they operate; and as with the other indicators highlighted in this report, Toronto Hydro put its own unique stamp on community involvement in 2007, demonstrating that the results of sustained community building are not always measurable in dollars and cents.

One example is the One-on-One Mentoring Program, for which 29 Toronto Hydro employees actively volunteered during 2007. Developed and sponsored by the City of Toronto, One-on-One started eleven years ago with a goal of helping ‘at risk’ children in Grades 1 through 8 who are struggling with family-related or social skills problems. Toronto Hydro employee ‘mentors’ each meet with a child one-on-one, once a week, on their own time. They read with them, play games, organize outings, talk with them — and hopefully make a difference in the child’s outlook, confidence and behaviour.

Community Involvement Expenditures January — December 2007 Volunteerism 3% Community Events & Sponsorships 6% Health & Safety 9%

Economic Strength 8%

Social Services 40%

Education 12%

Environment 22%

2007 Corporate Responsibility Report | 11

Through a combination of corporate donations and volunteer hours, Toronto Hydro commits approximately one per cent of net income to Community Involvement programs.

Toronto Hydro employees contributed over $194,000 to the United Way of Greater Toronto in 2007. Shown here at the CN Tower Climb are Martin Caesar and his daughter.

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Other than measuring that these acts of generosity took place, there is no quantifiable monetary aspect to this program. And yet, the community building is real, the nurturing is irreplaceable, and the difference it makes in a child’s life, and a mentor’s too, is priceless.

The same might be said of Toronto Hydro’s involvement with Eva’s Phoenix — a shelter for homeless adolescents which also offers an opportunity for resident youths to learn the printing trade. A United Way of Greater Toronto agency, Eva’s Phoenix works to get ‘at risk’ youth off the streets permanently. In 2007, Toronto Hydro employees contributed a record-breaking $194,000 to the United Way of Greater Toronto’s annual drive. Toronto Hydro President and CEO, David O’Brien also donated his time and contacts as a member of the United Way’s Campaign Cabinet.

In addition, Toronto Hydro provided several youth living at Eva’s Phoenix with the opportunity to practice their printing skills by hiring them to produce all the promotional materials associated with Toronto Hydro’s internal 2007 United Way and Employee Charity Trust campaign.

For the third year in a row, Toronto Hydro, Enbridge Gas Distribution and United Way partnered on the Winter Warmth Fund, which provides

Introduction

Social Commitment

financial assistance to low-income customers who might not otherwise be able to pay their energy bills.

It also solidified a partnership with several local distribution utilities to expand this program.

Other community groups receiving donations and in-kind support through the utility’s Brighter Days community involvement program include: CIBC Run/Walk for the Cure, Take Our Kids to Work (Learning Partnership), Toronto Sci-Tech Fair, Ride for Heart, First Robotics, Earth Week, Toronto Smog Summit, YMCA Corporate Team Challenge and Pollution Probe’s Clean Air Commute. A full accounting of Toronto Hydro’s community involvement expenditures is provided on page 11.

In keeping with its commitment to environmental responsibility, Toronto Hydro also supported the City’s Urban Forest Campaign, Ontario Forestry Association and Local Enhancement and Appreciation of Forests (LEAF) — a partnership that subsidizes tree plantings in neighbourhood backyards.

As evidenced in the company’s Code of Business Conduct, Toronto Hydro strives to help people help themselves. As a result, there is not always a monetary transaction between the utility

Environmental Responsibility

Economic accountability

Appendices

Through a combination of corporate donations and volunteer hours, Toronto Hydro commits approximately one per cent of net income to Community Involvement programs. Shown here, from left to right, are Toronto Hydro employees Marie Pereira, Rita Iannetta, Betty Henry and Nora McAllister at a United Way employee appreciation event.

and the community, but rather a gift of time, of experience, a transfer of knowledge, or a timely introduction. This type of community building is evidenced in the utility’s formal and informal partnerships with environmental groups, for example, in its relations with suppliers and contractors, as well as with the academic community. A complete list of Toronto Hydro stakeholders appears on page 37 of this report.

2007 Corporate Responsibility Report | 13

In 2006, Toronto Hydro began making capital investments to improve service reliability and customer satisfaction.

System Average Interruption Duration Index (SAIDI)** 100

Minutes/Customer

80 60 40 20 0

72.3

74.61

80.95

2005

2006

2007*

* In 2007, weather and Hydro One loss of supply contributed to the increase in SAIDI.

System Average Interruption Frequency Index (SAIFI)** Interruptions/Customer

2.5 2.0 1.5 1.0 .5 0

1.81

2.05

2.01

2005

2006

2007

** Excludes major event days.

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System Integrity and Reliability: SAIDI & SAIFI Of the key performance indicators that are monitored both by the Ontario Energy Board and the Canadian Electricity Association, none is more important to the integrity of Toronto’s electricity grid than the SAIDI and SAIFI indicators.

These numbers represent the amount of time, and the number of times, respectively, that customers’ service is interrupted each year due to everything from drivers running into hydro poles to tree canopies interfering with hydro wires. While the numbers may appear small, it’s what they represent — in terms of their effect on the lives of real people — that Toronto Hydro strives to manage as assiduously as the incidents themselves.

Toronto Hydro has started making capital investments to improve service reliability and customer satisfaction. One of the driving forces behind this investment — dubbed Project Rebuild — are unplanned interruptions of service. Looking back on the frequency and severity of recent summer storms, for example, by 2006, it was clear to Toronto Hydro senior management

that the utility’s SAIDI and SAIFI numbers could begin to erode unless the infrastructure was renewed and the speed with which emergency crews responded to outages was improved. As a result, new outage management and distribution management software was deployed and became functional in late 2007.

Further to this, in 2006, as a result of a series of town hall meetings and based on numerous discussions with city councillors, it had become apparent that sections of the electricity grid were in need of repair. There was little doubt that the grid’s basic infrastructure — some of it dating back to the early 1950s — needed upgrading, and in some cases a complete refurbishment, in order to withstand the pressures of future growth.

Given the utility’s aging workforce (approximately onethird of the workforce is eligible for retirement in the next 10 years) and the need to ensure adequate skills training for new tradespeople to replace those retiring, investment in human capital is also required.

A total of $25 million has been allocated over three years to hire and train 160 new apprentices.

Based on all these factors, in late 2006, Toronto Hydro began to draft a comprehensive rate

Introduction

Social Commitment

filing for the Ontario Energy Board that would provide the ongoing funding necessary to execute this massive undertaking — the largest infrastructure renewal project in Toronto Hydro’s history. Subject to Ontario Energy Board approval, one third of the utility’s assets will be replaced, including more than 1,000 kilometres of underground cable.

The plan also calls for installation of new underground transformers; investment in submersible transformers in areas that are prone to underground flooding; conversion of overhead systems; and replacement of station class transformers in municipal substations.

In 2007, Toronto Hydro made significant advances in the roll-out of Project Rebuild, replacing 170 kilometres of direct buried cable; 90 kilometres of underground cable; 1,480 poles; 1,036 transformers; and major upgrades to 39 stations.

Project Rebuild also makes provisions for community ‘quality of life’ issues, in recognition of the disruption to property and traffic that occurs in the neighbourhoods where work is scheduled. A dedicated ‘Customer Connection Team’ has been assembled to deal directly with customers’ concerns.

A ‘Customer Satisfaction’ indicator based on customers’ experience with

Environmental Responsibility

Economic accountability

Appendices

Ride for Heart is just one of many community events in which Toronto Hydro employees and their families participate each year. Shown here are: Patty Kisielis, Andrea Filice (Emilio’s daughter), Emilio Filice (THESL employee) and Paolo Santin.

the utility around its rebuilding plans is not one of the 18 indicators that are presented in this report. However, it may well become part of future Corporate Responsibility reports. For the time being, during Project Rebuild, Toronto Hydro’s SAIDI and SAIFI indicators will tell the utility as much about improvements to reliability as they do about customer satisfaction.

2007 Corporate Responsibility Report | 15

In-the-field training requires a period of overlap during which experienced staff can transfer their knowledge prior to retirement.

Investing in people In terms of human capital investment, THESL is ensuring the required transfer of knowledge and skills through two avenues: a formal trades school, which hired apprentices will attend, and in-thefield mentoring by experienced staff.

In-the-field training requires a period of overlap during which experienced staff can transfer their knowledge prior to retirement.

In August, eighteen new Certified Power Cable Person Trades Apprentices were welcomed to Toronto Hydro-Electric System’s Trades School. The Ministry of Colleges and Universities also accepted and recognized Toronto Hydro’s trades school curriculum as equivalent to the in-school requirements for the Powerline Technician Trade.

At year-end, Toronto Hydro-Electric System Limited had 67 apprentices in trades training, including 35 newlyhired Certified Power Line Persons apprentices and two Certified Power Line Person graduates.

Elizabeth Watson, Design Technician

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Reportable Environmental Incidents | Customer Electricity Conservation and Demand Management

Environmental Responsibility

environmental ResponsiBility depending on how you look at it, size can be a significant strategic advantage. if you’re the largest urban distribution utility in Canada, it can be a chance to set the pace. since 2005, when toronto Hydro chose to step up to the environmental plate, the utility has managed to exceed expectations in a number of important ways.

Reportable Environmental Incidents one measure of its environmental performance was ‘Reportable environmental Incidents’ — a measure on which Toronto Hydro reported even before the regulation was introduced in 1998. under ontario Regulation 675/98, Toronto Hydro is required to report the number of spills to air, land and water to the Ministry of the environment. For electric utilities, reportable environmental incidents typically refer to transformer oil and hydraulic liquid spills over 100 litres, which are commonly caused when cars run into hydro poles, when transformers overheat or when vaults flood during severe wet weather. In 2007, fourteen spills occurred, two of which were reported to the Ministry of the environment.

through tree planting days and a long-standing partnership with local enhancement and appreciation of forests (leaf), toronto Hydro is helping to replenish the City of toronto’s urban forest. in 2007, a total of 3,675 trees were planted in partnership with leaf, tree advocacy and other local projects.

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Introduction

Social Commitment

Environmental Responsibility

Economic accountability

Appendices

assured indicator #4

Reportable Environmental Incidents definition | Number of reportable environmental incidents as defined by the Ontario Regulation 675/98. assured indicator #5

Customer Electricity Conservation and Demand Management definition | Total kilowatt-hours and kilowatts saved by customers due to conservation and demand management programs implemented by Toronto Hydro-Electric System Limited.

Customer Electricity Conservation and Demand Management Authority contracts, Toronto HydroElectric System was accountable to these agencies for achieving its CDM goal.

At year-end 2006, eighteen months into its CDM plan, Toronto Hydro had achieved annual electricity savings of approximately 247 million kilowatt-hours. By year-end 2007, a further reduction of approximately 276 million kilowatt-hours was achieved, bringing total savings to approximately 523 million kilowatthours. Toronto Hydro’s results (for 2005 and 2006) were reviewed by the Ontario Energy Board. Based on energy savings, it is estimated that over 123,951 tonnes of carbon dioxide emissions have been displaced as a result of these programs. Following is a sampling of some of the programs that were implemented in 2007.

Businesses account for just 20 per cent of Toronto Hydro’s customer base, but they represent approximately 80 per cent of the City’s electricity use. In 2007, one of the CDM team’s top priorities was to stimulate energy reductions in this sector. Building on the overwhelming success of the made-in-Toronto Summer Challenge program in 2006, Toronto Hydro scored another touch-

30 25 20 15

# of Spills

A second measure of environmental performance — Customer Electricity Conservation and Demand Management — came to the fore as a result of the Province of Ontario’s decision in 2005 to transform consumer attitudes and behaviours about electricity, and to create a conservation culture through a widespread program of conservation and demand management (CDM).

This directive was in response to concerns about the health of Ontario’s long-term energy supply.

Ready to take a leadership role in support of the Province’s CDM plans, Toronto Hydro-Electric System Limited — the regulated affiliate — embarked immediately on an ambitious, and in many cases, ground-breaking series of conservation and demand management initiatives. In 2007, the utility invested $23.4 million in programs that touched all customer segments and geographic locations across the Greater Toronto Area.

Toronto Hydro’s three-year total investment in such programs was $60.4 million. Given that the programs were partly funded through Ontario Energy Board-approved rates and partly through Ontario Power

Reportable Environmental Incidents

10 5 0

26 4

27 9

2005

2006

14

2

2007

Total # of Spills # of Reportable Spills

Reportable Spill Criteria 1. More than 100 litres spilled 2. Material entered waterway or sewer 3. Material contains PCBs greater than 50 parts per million 4. Extensive damage to private property If any of the above criteria are met, the spill is reportable to the Ontario Ministry of Environment and the City of Toronto. Only ‘Total Reportable Spills’ was an assured indicator in 2007.

NOTE: Total # of Spills includes # of Reportable Spills

2007 Corporate Responsibility Report | 19

in 2007, tHesl emBaRked on an amBitious seRies of ConseRvation and demand management initiatives totaling $23.4 million and touCHing all CustomeR segments and geogRapHiC loCations in toRonto.

Collateral material such as this ad for summer Challenge for Business helped to encourage over 12,902 business customers to save 87.8 million kilowatt-hours of electricity in 2007.

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down in 2007 with the summer challenge for Business program.

The concept for this program was exactly the same as for the residential program: businesses that reduced their electricity consumption by 10 per cent between July 1 and August 31 earned a 10 per cent rebate on their fall electricity bill.

Through strong promotion that included a direct mail and advertising campaign, summer Challenge for Business resulted in a 70 per cent awareness score amongst business customers, with 52 per cent actively participating. At year-end, an impressive 87.8 million kilowatt-hours had been saved thanks to 12,902 customers who rose to the challenge.

Together, they earned rebates totaling $3.7 million.

Also for business customers, Toronto Hydro launched the Business incentive program.

This program provides financial incentives to business customers (25,000 square feet or less) for energy-efficient and improvement projects that demonstrate measurable results.

In partnership with Toronto Association of Business Improvement Areas, Toronto Hydro also spearheaded a festive lighting exchange that invited local area residents to exchange two traditional

Social Commitment

incandescent light strings for one free string of LED lights. In 2005, four Business Improvement Areas (BIAs) participated in the program, resulting in 750 kilowatt savings; by 2006, savings generated through the Exchange had increased to 1.034 megawatts; and by year-end 2007, with 18 BIAs and five additional communities participating in the program, savings of 1.8 megawatts were achieved. Toronto Hydro provided additional visibility for the program by working with the City of Toronto on its annual Cavalcade of Lights, which featured lighting displays across the city.

For the third year in a row, residential customers were offered an opportunity to retire their energy-guzzling air conditioners through the highly successful Keep Cool program, implemented together with The Home Depot and the Clean Air Foundation. Toronto Hydro customers who brought their old room air conditioner to a local Home Depot store received a $25 Home Depot gift card. In 2007, a total of 6,338 inefficient units were returned and recycled over four weekends, representing over 4 megawatts in electricity savings. Since it first participated in the program, Toronto Hydro has collected and recycled more than 18,000 old room air

Environmental Responsibility

Economic accountability

Appendices

Toronto Hydro engages in many ways, big and small, to reduce its environmental footprint. Shown here are Toronto Hydro employee volunteers at a City of Toronto Clean Up Day.

Conservation and Demand Management Investment 25 20 15

$ (in MILLIONS)

Introduction

Dr. Frank Frantisak, Chair, Environment, Health & Safety Committee.

10 5 0

13.43

23.54

23.39

2005

2006

2007

2007 Corporate Responsibility Report | 21

toRonto HydRo Continued to look inwaRd to ensuRe inteRnal pRaCtiCes lined up witH tHe utility’s exteRnal Commitments to tHe enviRonment.

toronto Hydro won the prestigious platt’s global award for energy efficiency for introducing residential customers to the innovative peaksaver ac program which allows toronto Hydro to cycle down their air conditioners during times of peak demand. approximately 46,000 customers have voluntarily signed up for the program.

conditioners, equal to a demand reduction of almost 15 megawatts.

Also in 2007, Toronto Hydro joined forces with five of ontario’s largest distribution companies (collectively called the Coalition of Large distributors) to provide coordinated CdM programs to residential and commercial customers representing approximately 40 per cent of all customers in ontario. As a result of their efforts, Coalition of Large distributors members saved 22 | Toronto Hydro Corporation

approximately 527 million kilowatthours of electricity — the equivalent of powering 58,546 homes for one year — during their three-year relationship.

Toronto Hydro energy services’ (TH energy) energy management division also continued to deliver sustainable energy solutions for clients in the GTA. during 2007, TH energy contributed to the City of Toronto’s energy reduction goals by retrofitting the City’s 58 community centres. In addition, TH energy was also selected by Toronto City Council to implement the new City Hall energy project. The project’s goal is to achieve sustainable energy cost savings and to help minimize the City’s budget pressures.

Also, Toronto Hydro street Lighting launched a year-long research project to test new street lighting technologies and related efficiency for future deployment in the City of Toronto. The real-life study, which began in december, will test five different lighting technologies for output, lamp life, lumen degradation over time and temperature effects. Types of lights include induction, fluorescent, Led, electronic ballast operated metal halide and high pressure sodium.

In october, Toronto Hydro Telecom announced the opening of a new collocation facility — the only one

Introduction

Social Commitment

of its kind in Toronto that utilizes an interstitial raised floor. Multiple layers underneath the raised floor allow for the separation of power and communications cabling from air transmission space. Creating a far more efficient air flow allows Toronto Hydro Telecom to reduce the traditional number of air conditioning units with the associated reduction in energy consumption, and in turn provides a more environmentally friendly approach.

Toronto Hydro also continued to look inward to ensure internal practices such as ‘Energy Efficiency’ (a potential indicator for future assurance) lined up with the utility’s external commitments to the environment. In 2007, Toronto Hydro decreased its electricity consumption at all locations by two per cent (350,420 kilowatt-hours) compared to the previous year.

Also noteworthy was a companywide decision made in May to print all internal publications, as well as customer bills, on Forest Stewardship Council (FSC) certified paper and to use FSC certified printers, wherever possible, for the production of marketing and promotional materials. From June to year-end, Toronto Hydro used 2.8 million FSC envelopes, resulting in the diversion of 18,440 kilograms of solid waste and

Environmental Responsibility

Economic accountability

Appendices

By the end of 2007, Toronto Hydro had installed approximately 416,000 smart meters — part of the Province of Ontario’s goal of creating a conservation culture.

When the plan is fully implemented in 2010, Toronto will be the most densely smart-metered city in the world.

2007 Corporate Responsibility Report | 23

Toronto Hydro decided to view CDM not simply as a performance indicator, but rather as an opportunity to redefine itself.

Waste Recovery

2005

2006

2007

600

1500

400

1200

300

900

Copper

Aluminum

greenhouse gas emissions savings of 36,313 kilograms. The company also moved away from a traditional paper annual report and now produces a much-condensed paper summary along with a more detailed on-line version to communicate its annual results to stakeholders.

In terms of waste management, material volume that was recovered was 8.75 per cent higher than in 2006. Toronto Hydro also diverted 81.5 per cent of waste materials from landfill through its internal Reduce, Reuse, Recycle program. This included 313,990 kilograms of copper from transformers and cables which, rather than being sent to landfill, were sold to local scrap yards.

24 | Toronto Hydro Corporation

Lead Sundry Nonferrous Steel

Over 243,000 kilograms of aluminum and nonferrous materials totaling over 519,349 kilograms were also taken out of service and reclaimed.

Size does matter. There’s no doubt that large companies have greater purchasing power, greater opportunity to forge strategic alliances, and greater potential to make a difference. The question is, how to leverage that size, and under what circumstances.

Toronto Hydro’s answer to that question came when it decided to take a leadership role in conservation and demand management. Using the same rigor that it applies to financial management, the company decided to view CDM not simply as

0

1,201

300

1,207

600

824

259.6

219.9

214.0

519.3

345.0

257.9

71.7

94.1

150.7

243.0

286.4

82.2

314.0

0

360.4

100

# of units

200

384.9

# of Units (1,000 kIlograms)

500

Scrap Transformers

a performance indicator, but rather as an opportunity to redefine itself, starting with the creation of new types of jobs, new internal processes and controls, an invigorated brand and a stronger focus on customer satisfaction. With that decision also came a significant boost to Ontario’s emerging ‘conservation culture’, complete with myriad economic and social benefits.

Environment, Health & Safety Committee Dr. Frank Frantisak — Chair Patricia Callon Councillor Bill Saundercook

Operating Expenses | Revenues

Economic Accountability

economic aCCountaBility never before have transparent financial management and reporting had such a bearing on public trust.

financial Performance Without a solid financial base, a company’s operations are simply not sustainable; nor is there sufficient financial flexibility to allow it to become a true partner in civic life. This section provides examples of where economic prudence and social responsibility intersect.

Toronto Hydro’s 2007 audited financial statements demonstrate sound management of the company’s financial resources, including rigorous controls over total revenues of $2.39 billion and operating expenses totaling $206.3 million.

Annual dividend payments of $46.2 million were made to the shareholder, as scheduled. The company maintained its credit rating of ‘A’ (dBRs) and ‘A-’ (standard & poor’s).

Customers like elaine Cecconi and anna simone (Cecconi simone interior design) depend on toronto Hydro to keep the lights on, to provide electricity at a fair price and, increasingly, to initiate energy conservation programs such as the Business incentive program that will help them manage their business’ electricity costs. they took toronto Hydro up on the summer Challenge for Business program, for example, and in 2007 met their electricity savings target of 10 per cent.

26 | Toronto Hydro Corporation

Introduction

Social Commitment

Environmental Responsibility

Economic accountability

Appendices

assured indicator #6

Operating expenses definition | Refers to consolidated annual operating costs, as reported in the Corporation’s Audited Consolidated Statement of Income. assured indicator #7

Revenues definition | Refers to consolidated annual revenues, as reported in the Corporation’s Audited Consolidated Statement of Income.

Revenues

Risk Management

2.5 2.0 1.5

$ (Billions)

the Corporation. As with the methodology employed for the initial risk assessment in 2004, a systematic approach was used to assess the likelihood and impact of potential future events that could hinder the Company’s ability to operate successfully. The objective was to re-create a comprehensive approach to anticipating, identifying, prioritizing, managing and monitoring the portfolio of business risks impacting Toronto Hydro-Electric System Limited (THESL) — the largest of Toronto Hydro Corporation’s three affiliates.

In order to bring more focus to the manner in which the identified risks will be managed going forward, policies, processes, accountabilities and reporting will be implemented as part of THESL’s Management Control and Reporting System.

In 2007, Toronto Hydro committed to implementation of the Electrical & Utilities Safety Association’s ZeroQuest program, an integrated approach to safety. Zero Quest’s

1.0 .5 0

2.25

2.39

2006

2007

Operating Expenses 250 200 150

$ (millions)

At its November 2004 meeting, management presented the THC Board of Directors with the results of a business-wide risk assessment analysis intended to identify the major risks facing the Corporation and its affiliates. A ‘risk universe’ of 59 risks was presented; and within that listing, management’s view of the top 15 risks facing the company were identified by using a number of pre-determined risk metrics and a voting/ranking tool. The risk metrics were specifically tailored for THC and its subsidiary companies.

The top risks identified were: Asset Integrity; Regulatory; Reliability & Security; Health & Safety; Human Capital; Large Scale Outage, Natural Hazard/Catastrophe; Change in Government; CDM; Information Technology; Communication; Ownership; Failure of new TH Energy Initiatives; Financial Reporting.

In October 2006, senior management and various subject matter experts met to identify and evaluate current risks facing

3.0

100 50 0

194.20

206.26

2006

2007

2007 Corporate Responsibility Report | 27

ZeroQuest’s goal is the elimination of workplace injuries and the establishment of a ‘safety culture’.

goal is the elimination of workplace injuries and the establishment of a ‘safety culture’. In order to reach these objectives, Toronto Hydro will begin to write safety goals into employees’ performance contracts in 2008, and employee health and safety will become strategic corporate objectives.

Compensation Disclosure Toronto Hydro’s Board of Directors recognizes the importance of complying with all disclosure requirements imposed by Canadian Securities Administrators and is committed to promoting consistent disclosure practices aimed at accurate and timely disclosure of material information.

To ensure consistent and appropriate disclosure practices, the Corporation has adopted a Disclosure Policy to govern the disclosure by its employees, officers and directors of material information about the Corporation; and has established a Disclosure Committee composed of senior executives to assist the Chief Executive Officer in making accurate, complete and timely disclosure.

Toronto Hydro disclosed compensation information for its senior executives in its 2007 Annual Information Form.

Toronto Hydro Energy’s Street Lighting service helped police to install closed circuit television cameras, allowing them to respond to concerns for public safety in the downtown Theatre District.

28 | Toronto Hydro Corporation

Introduction

Social Commitment

Environmental Responsibility

Economic accountability

Appendices

Code of Business Conduct Toronto Hydro posts a full Code of Business Conduct on www.torontohydro.com. The Code outlines the company’s commitment to ethical decision making, and to integrity, fairness, prudence and respect in its dealings with stakeholders and employees. Within the code is a provision for ‘enhancing the quality of life’ in Toronto Hydro communities; two examples of how that provision was interpreted by Toronto Hydro affiliates in 2007 are worth noting.

Toronto Police Services (TPS) approached Toronto Hydro Energy’s Street Lighting service with concerns about public safety in three ‘high crime’ locations. Public disturbance, civil disobedience and occasional violence are serious sources of concern for police. In response to their request for assistance, Toronto Hydro Energy’s Street Lighting service implemented a pilot project, installing closed circuit television cameras on its poles which allow them to monitor activities as they occur in real-time and to respond quickly. The pilot was completed in August 2007. Later in the year, Toronto Police Services approached Toronto Hydro Energy’s Street Lighting service to install fiber that would link TPS headquarters to City Hall, from City Hall to 51 Division, from City Hall to Metro Hall and from Metro Hall back to the Entertainment District. The fibre network would allow real-time viewing of the closed

Toronto Hydro-Electric System crews are helping to rebuild and refurbish the grid’s aging infrastructure. Over the next 10 years, subject to regulatory approval, the utility intends to invest in everything from underground cable to submersible transformers.

circuit cameras by police staff. This project was also completed in 2007.

Also in the interests of public safety, Toronto Hydro Energy’s Street Lighting service continued its ‘walk-through’ program with police and city councillors in a dozen areas of the city that are deemed to be at risk of becoming havens for crime.

These walk-throughs led to a series of street lighting upgrades in the Bloor/Dufferin, Queen West, and St. Clair West neighbourhoods.

Small acts of kindness can be as important as full-blown corporate responsibility programs. And so 2007 Corporate Responsibility Report | 29

tHese examples demonstRate tHat doing tHe ‘RigHt’ tHing foR tHe Community is a Consistent, if not innate, featuRe of toRonto HydRo CultuRe.

when a former Toronto Hydroelectric system Limited employee and Alzheimer’s patient went missing from st. Joseph’s Hospital in the city’s west end, on-duty crews and off-shift employees were more than willing to keep a watchful eye on city streets. Within 30 hours, their efforts were rewarded when their former colleague was located and returned to hospital.

Corporate good will — or ‘enhancement of public quality of life’ — was not identified as an assured indicator of Corporate Responsibility for the purposes of this report. nonetheless, these examples demonstrate that doing the ‘right’ thing for the community is a consistent, if not innate, feature of Toronto Hydro culture. In future, ‘stakeholder engagement’ may well become an assured indicator.

audit committee L. Ross Cullingworth — Chair david L. Bumstead Brian Chu

compensation committee Jeffrey G. Marshall — Chair Clare R. Copeland Janet Beed

corporate governance committee in 2007, toronto Hydro spearheaded a partnership with several local distribution companies to expand the winter warmth fund, a program that provides financial assistance to low-income customers.

30 | Toronto Hydro Corporation

Brian Chu — Chair Clare R. Copeland dr. Frank Frantisak

Appendices

Appendices Corporate Structure

Board of Directors Toronto Hydro Corporation

Toronto Hydro Corporation

Toronto Hydro-Electric System Limited

32 | Toronto Hydro Corporation

Toronto hydro Energy Services inc.

Toronto Hydro Telecom inc.

Introduction

Social Commitment

Environmental Responsibility

Economic accountability

Appendices

Toronto Hydro Energy Services Inc.

Toronto Hydro Telecom Inc.

Clare R. Copeland, Chairman

Toronto Hydro-Electric System Limited

Boards

Toronto Hydro Corporation

Toronto Hydro Boards of Directors

n

n

n

n

n

Colum Bastable Janet Beed

n

n

n

David L. Bumstead

n

n

n

Patricia Callon

n

n

Brian Chu

n

n

L. Ross Cullingworth

n

n

Dr. Frank Frantisak

n

n

n

Jeffrey G. Marshall

n

n

n

n

David Williams Councillor Gordon Perks

n

Councillor Bill Saundercook

n

n

n

Councillor David Shiner

n

n

n

2007 Corporate Responsibility Report | 33

Other Types of Indicators: Definitions* Absenteeism | Social This indicator provides information on the number of days absent per active full-time employee (not on full-time equivalents).

Average Monthly Residential Bills | Economic Average monthly bill for a residential customer consuming 1000 kilowatthours per month (a typical indicator used in the electric utility industry).

Average Temporary Accommodated Days per Accommodated Employee | Social Average number of days an accommodated employee is accommodated. It represents the effectiveness of the accommodation program in getting occupational injured workers back to meaningful work.

This indicator includes employees on the payroll from all Toronto Hydro affiliates. It applies to occupational injury accommodation only.

Call Centre Customer Service Telephone Response Time and Response Quality | Social This indicator consists of two values.

The first represents the average percentage of calls monthly that are

34 | Toronto Hydro Corporation

answered in less than 30 seconds.

The second value takes into account the average quality score for all calls monitored per month.

Emergency Response Time | Social This indicator refers to the per足 centage of occasions where response to police, fire and/or ambulance calls is made within 60 minutes. This indicator applies only to Toronto Hydro-Electric System Limited.

Energy Efficiency | Environment Units of electricity, fuel and natural gas saved in THC facilities and equipment due to conservation and efficiency improvements.

Fines and Penalties | Environment Total monetary value of regulatory fines and penalties paid by THC for infractions related to Ministry of Labour, Ministry of the Environment, Ontario Energy Board, Independent Electricity System Operator, Electrical Safety Authority and Ontario Securities Commission.

The amount paid is the amount reported in the financial statement in the reporting year.

ZERO Injury | Social Percentage of employees without WSIB reportable injuries.

Total Employee Benefits | Social Cost of active employee benefit programs. This value includes all affiliates and only active employees.

Total Number of Employees | Social Headcount of permanent full-time employees as of December 31.

This indicator does not include contractors, students and parttime employees; nor does it include employees on long term disability.

The indicator includes all Toronto Hydro affiliates.

Total Waste | Environment Metric tonnage of non-hazardous and hazardous waste and waste diversions percentage for Operations and Office divisions. Includes all Toronto Hydro activities with the exception of THTI and THESI. * These indicators were not assured

by PricewaterhouseCoopers in 2007.

Introduction

Social Commitment

Environmental Responsibility

Economic accountability

Appendices

Environment, Health and Safety (EHS) Policy Toronto Hydro Corporation is committed to the quest of achieving zero injuries and illnesses and demonstrating industry best practices in workplace health, safety, environmental responsibility, energy conservation and sustainable development.

To achieve our commitment we will apply the following principles and implement EHS plans with CUPE Local One: • Health, safety and the environment are primary considerations in everything we do.

• Continuously improving the Health, Safety and Environmental Management System in collaboration with CUPE Local One, to ensure we are exceeding legislative requirements and performance.

• Management is responsible for providing a healthy and safe workplace, and ensuring employees are trained and comply with all Toronto Hydro rules, practices and standards.

• Each employee is responsible for working safely; reporting unsafe, unhealthy conditions; and ensuring their own health and safety, that of their co-workers and members of the public.

One of the most important promises Toronto Hydro works to uphold is the promise to ensure its workplaces are safe, so that employees know they will return home injuryfree every day.

• All contractors and suppliers are responsible for complying with all relevant occupational health, safety and environmental legislation and Toronto Hydro health, safety and environmental rules and standards.

Toronto Hydro Corporation and CUPE Local One will review this policy annually and report regularly to the Board of Directors, Environment, Health and Safety Committee on environment, health and safety performance.

Code of Business Conduct Toronto Hydro’s Code of Business Conduct details the company’s commitments to key stakeholders including the Shareholder, customers, employees, contractors, and the community. A full copy of the Code can be viewed at www.torontohydro. com in the Corporate Responsibility menu. The company has an Ethics & Compliance Officer to deal with issues of potential breaches to the Code and/or noncompliance.

2007 Corporate Responsibility Report | 35

Sample Process Map System Average Interruption Frequency Index (SAIFI)

5 | Every month, the Distribution Grid Operations (DGO) department receives a monthly customer serve count from the Customer Care Division by email.

Customer serve count

Division’s information system BANNER

Customer serve count

START

4 | Customer Care

1 occurs and Toronto Hydro acknowledges it (e.g. due to a customer call, through telemetry or Supervisory Control and Data Acquisitions (SCADA))

and Report is inputted into Interruption Tracking Information System (ITIS). The Report contains information on number of customer interruptions.*

report is produced containing the total monthly number of customer power interruptions that are equal or greater than one minute.

end

9 | The monthly Scorecard is sent to Senior Executives of Toronto Hydro Electric System Ltd. and to the OEB.

8 | Supervisor,

7 | At month end,

Manager and VP of Distribution Grid Management (DGM) sign off on the monthly Scorecard.

Distribution Grid Management (DGM) Scorecard is populated from previous scorecards and with this new information.

The Scorecard contains monthly, year to date and annual averages.

end

# of customer power interruptions

3 | Every month a

11 | CR Report.

START

2 | Power is restored

1 | An interruption

2 6 | Using an Excel Spreadsheet, the total monthly number of customer power interruptions is divided by the number of customers served to obtain the monthly SAIFI.

3 Saifi

year end Saifi

10 | The year end average is communicated to the CR Report DRP to be included in the CR Report.

* Some of the interruptions reported could have happened to the same customer.

Each loss of service is counted as an interruption whether it was generated by the same or a different customer.

For every assured indicator in this report, Toronto Hydro developed a process map like this one to identify each step in a given process and to measure its results. In 2007, Toronto Hydro-Electric System’s SAIFI index was higher than in 2006 because of weather incidents. To help mitigate tree contacts due to adverse weather conditions, THESL increased its tree maintenance budget.

36 | Toronto Hydro Corporation

Introduction

Social Commitment

Environmental Responsibility

Economic accountability

Appendices

Key Stakeholders In addition to its approximately 680,000 residential and commercial customers, Toronto Hydro Corporation works to maintain positive relationships with the following key stakeholders: City of Toronto

Ministry of Energy

City of Toronto Urban Forest

Ministry of Labour

Coalition of Large Distributors

Office of the Premier of Ontario

• Enersource Corporation

Ontario Energy Association

• Horizon Utilities

Ontario Energy Board

• Hydro Ottawa

Ontario Energy Network

• PowerStream • Toronto Hydro Corporation • Veridian Corporation Duke of Edinburgh Awards Electricity Distributors Association Fatal Light Awareness Program Heart & Stroke Foundation Independent Electricity System Operator

Ontario Forestry Association Ontario Power Authority Pollution Probe Toronto Atmospheric Fund Toronto Environmental Alliance Toronto Sci-Tech Fair United Way of Greater Toronto Workplace Safety and Insurance

Learning Partnership

Board (WSIB)

Local Enhancement and Appreciation of Forests (LEAF)

CR Contact Information Blair Peberdy, Vice-President, Communications and Public Affairs and Chief Conservation Officer Toronto Hydro, 14 Carlton, Suite 900 416 542-2515 bpeberdy@torontohydro.com

The cr team Gord Baird, Renzo Cacciotti, Roy Chung, Rick DiCecco, Robert Fanone, Gavin Gao, Wendy Howse, Ivano Labricciosa, Ben LaPianta, Yves Lemoine, Peter Lo, David Martin, Brad McDonald, Angie Melillo, Richard Oliver, Tony Pardal, Blair Peberdy, Charlton Perry, David Powell, Jennifer Reynolds, Colleen Richmond, Lynne Robertson, Darryl Seal, Pam Tweedy, Chris Tyrell and Monica Warnell

2007 Corporate Responsibility Report | 37

Toronto Hydro Corporation 14 Carlton Street Toronto, ON M5B 1K5 www.torontohydro.com