$H.TO

Hydro One Seeks Regulatory Approval to Build Orleans Area Reinforcement Project

Hydro One (H.TO) has filed a leave-to-construct application with the Ontario Energy Board to seek approval to build the C$100 million Orleans Area Reinforcement Project, the company said Friday.Hydro One expects the project to bolster capacity, improve the system's regional transfer capability, and strengthen reliability amid Ontario's increasing electricity demand. The project is expected to be in service by 2029.The project includes the construction of a new 11-kilometer 115-kilovolt (kV) transmission line within an existing transmission corridor between the Hawthorne and Orleans transformer stations located in the Greater Ottawa area.The project also includes converting an existing 115-kV transmission line between the two stations to 230-kV.

Market Chatter: Toronto Power Outage Affects Wide Swath of Financial District

More than 400 customers in Toronto remain without power after a fire at a transmission station caused outages in the downtown core, according to utilities Toronto Hydro Corp. and Hydro One Ltd., Bloomberg is reporting Tuesday.The disruption began after 11:30am local time, affecting more than 1,200 customers in a dense area populated with office towers, hospitals, academic institutions and shops, the report said. A single customer may include several tenants and occupants, it added, while noting power has since been restored to nearly 900 customers, according to Toronto Hydro's outage map."While we don't have a confirmed estimated time of restoration, we have been able to work with Hydro One to restore power to some impacted customers," Toronto Hydro said in a social media post. Fire crews are clearing a transmission station site, Hydro One said in its own social media post, and it will assess damage afterward.(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Hydro One Prices Inaugural Offering of Senior Notes Worth US$1.0 Billion

Hydro One's (H.TO) subsidiary Hydro One Inc. has priced an inaugural offering of US$1.0 billion of 4.750% senior notes due May 30, 2031, the company said late on Wednesday.The offering is scheduled to close on or about May 26, subject to customary closing conditions.Net proceeds will be used to repay certain maturing long-term debt and short-term indebtedness, including commercial paper, and for other general corporate purposes.The joint book-running managers for the offering are Barclays Capital, Mizuho Securities USA and RBC Capital Markets.

Hydro One Files Applications With Ontario Energy Board for Two Major Transmission Lines

Hydro One (H.TO) after trade Tuesday said it filed leave-to-construct applications with the Ontario Energy Board for approval to build the Northeast Power Line and the Longwood to Lakeshore Transmission Line.The Northeast Power Line will be a 500-kilovolt transmission line running between Greater Sudbury and near Wharncliffe. The roughly $1.8 billion project is expected to increase electricity transfer capacity between northeast and northwest Ontario by about 900 megawatts and is targeted for completion in 2029, the company said.The Longwood to Lakeshore Transmission Line is also a 500-kV transmission line that will connect Longwood TS in Strathroy-Caradoc to Lakeshore TS in Lakeshore. The roughly $1.2 billion project is expected to deliver about 550 MW of electricity to the region, supporting local jobs and industries. It is expected to be completed in 2030, the company said.Hydro One also said nearby First Nations will have the opportunity to invest in a 50% ownership stake in the transmission line portions of both projects through the company's First Nation Equity Partnership Model."Electricity demand in Ontario is increasing. These lines are part of one of the largest transmission line infrastructure investment portfolios in Canada that we are advancing together with First Nations," Executive Vice President, Capital Portfolio Delivery, Ryan Docherty said.

CIBC Raises Hydro One's Price Target to C$59.00 Following the Company's Q1 Results

CIBC Capital Markets reiterated its neutral rating on the shares of Hydro One (H.TO) while bumping its price target to C$59.00 from $58.00 following the company's first-quarter results.Hydro One's results reinforce the company's strong positioning, with earnings momentum tracking toward the upper end of its 6%-8% medium-term earnings per share growth target, CIBC said.The company recorded an uptick in near-term distribution capex, and the medium-term to longer-term investment outlook remains strong buoyed by many transmission projects, according to CIBC.Price: $59.17, Change: $+0.40, Percent Change: +0.68%

National Bank of Canada Ups Hydro One's Price Target to C$56.00 Following Q1 Results

National Bank of Canada on Wednesday reiterated its sector-perform rating on the shares of Hydro One (H.TO) while raising its price target to C$56.00 from $55.00 following the company's first-quarter results.The bank raised the price target after incorporating the company's incremental capex guidance through 2027, as well as the Red Lake Transmission Line within longer-term estimates.Hydro One booked adjusted earnings of C$0.65 per share in the first quarter, compared to National Bank's estimate of $0.66 per share and the Street forecast of $0.63 per share.Price: $59.08, Change: $+0.31, Percent Change: +0.53%

Hydro One Posts Q1 Beat, Lifts Dividend and Changes CEO

Hydro One (H.TO) on Wednesday reported attributable net income and revenues for the first quarter that beat expectations, and the company lifted its dividend while changing its chief executive.Hydro One reported an attributable net income of C$391 million, or $0.65 per basic and diluted share, in the three months ended March 31, increasing from $358 million, or $0.60 per share, booked a year ago. Analysts expected Hydro One to record earnings of $0.64 per share, according to a consensus estimate compiled by FactSet.The change in EPS year-over-year was largely due to increased revenues from Ontario Energy Board (OEB)-approved rates and higher peak demand, partially offset by higher financing charges and higher depreciation, it said.Revenue climbed to $2.65 billion from $2.41 billion, above the analyst forecast of $2.49 billion compiled by FactSet.Hydro One declared a quarterly cash dividend of $0.3531 per share to common shareholders, payable June 30 to shareholders of record on June 10. The dividend represents an increase from a dividend of $0.3331 per share declared in February.Meanwhile, Hydro One appointed Megan Telford, currently chief operating officer, as president and chief executive officer, effective June 9, following the impending retirement of David Lebeter, who will remain as a special advisor with the company until October 10, 2026.Hydro One also announced the appointment of Debbie Hutton as the Government of Ontario's nominee to the company's board of directors."This CEO transition marks a continuation of the strong leadership and shared purpose we have built at Hydro One," said Lebeter.Shares in Hydro One were up $0.42 or 0.7% at $59.15, leaving it near 52 week highs.

Earnings Flash (H.TO) Hydro One Reports Q1 Revenue C$2.65B, vs. FactSet Est of C$2.49B

Hydro One Appoints Megan Telford as its President and Chief Executive Officer

Update: -- Hydro Q1 Basic EPS of $0.65 Compares to EPS of $0.60 for the same period in 2025

Hydro Q1 Basic EPS) of $0.65 Compares to EPS of $0.60 for the same period in 2025

Hydro Q1 Declared a Quarterly Cash Dividend of $0.3531 Per Share

RBC Changes Estimates for Select Canadian Energy Infrastructure Companies

RBC Capital Markets on Monday outlined estimate changes for select Canadian energy infrastructure companies ahead of the first-quarter earnings season.RBC raised the EBITDA estimate for Capital Power (CPX.TO) to C$400 million from $360 million while lowering the EBITDA forecast for Keyera (KEY.TO) to $210 million from $260 million. RBC cited seasonality profile changes to hedging and the related impacts.The EBITDA projection for Northland Power (NPI.TO) was raised to $430 million from $405 million to reflect RBC's expectation of higher European offshore wind resources.RBC cut the EBITDA estimate for TransAlta (TA.TO) to $217 million from $235 million due to lower power production levels.RBC raised its earnings forecast for Emera (EMA.TO) to $1.20 per share from $1.17 per share mainly due to more favorable weather at Tampa Electric, and higher-than-expected pricing volatility.The discounted cash flow estimate for Enbridge (ENB.TO) was lowered to $1.72 from $1.75 to reflect the anticipated impact from regulatory decisions by the CER on its MTS financial return calculation.RBC reduced its EBITDA estimate for Gibson Energy (GEI.TO) to $149 million from $154 million, driven by lower observed shipping activity.The earnings forecast for Hydro One (H.TO) was raised to $0.64 per share from $0.58 per share due to a higher-than-expected Ontario 60-minute peak demand and rate base growth.RBC boosted the EBITDA estimate for Pembina (PPL.TO) to $1.097 billion from $1.063 billion, primarily due to improvements in the frac spread benefiting Marketing.Price: $66.88, Change: $-0.37, Percent Change: -0.55%

Hydro One to Construct Red Lake Transmission Line in Northwest Ontario

Hydro One (H.TO) will develop and construct the Red Lake transmission line in northwest Ontario, the company said on Friday.The proposed project consists of a new double-circuit 230-kilovolt transmission line that will run from Dryden Transformer Station (TS) north to Ear Falls TS, including associated station facilities and will continue on to connect to Red Lake Switching Station. It is expected to be in service by the early 2030s.The Red Lake Transmission Line is expected to add about 400 megawatts of electricity in northwest Ontario, nearly quadrupling existing capacity. It is also expected to strengthen regional reliability and reinforce the grid for newly connected northern remote communities and the broader region, a statement said.Proximate First Nations can invest in a 50% equity stake in the transmission line component of the project.Hydro One shares closed up $1.23 to $58.11 on Thursday on the Toronto Stock Exchange.

CIBC Revises Price Targets for Power and Utility Equities

CIBC Capital Markets over the weekend outlined changes to price targets of power and regulated utilities equities ahead of the first-quarter earnings season.CIBC raised its price target for Canadian Utilities (CU.TO) to C$51.00 from C$47.00 given a higher P/E multiple applied to its 2027 earnings estimate. ATCO (ACO-X.TO)'s price target was also increased to C$82 from C$72.The price targets for Emera (EMA.TO), Fortis (FTS.TO) and Hydro One (H.TO) were each increased by C$1.00, while Algonquin Power & Utilities (AQN.TO)'s price target increased to US$6.50 from US$6.25.CIBC also boosted Brookfield Renewable Partners' (BEP-UN.TO) price target to US$40.00 from US$37.00 to reflect higher estimates.According to CIBC, investors should hold a balance of power and regulated utilities equities. Capital Power (CPX.TO) and Brookfield are among the preferred power names while ATCO and Fortis are the preferred regulated utilities names.Price: $66.33, Change: $-0.14, Percent Change: -0.22%