Hydro One Limited

Good morning, ladies and gentlemen, and welcome to Hydro One Limited's third quarter 2024 analyst teleconference. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. As a reminder, this call is being recorded. I would now like to introduce your host for today's conference, Mr. Omar Javid, Vice President, Investor Relations at Hydro One. Please go ahead.

Good morning, and thank you for joining us in Hydro One's quarterly earnings call. Joining us today are our President and CEO, David Lieberner, and our Chief Financial and Regulatory Officer, Harry Taylor. On the call today, we will provide an overview of our quarterly results, and then we will take some time answering questions as time permits. Today's discussions will likely touch on estimates and other forward-looking information. You should review the cost-sharing language in today's earnings release and our MD&A, which we filed this morning, regarding the various factors, assumptions, and risks that could cause our actual results to differ, as they all apply to this call as well. With that, I turn the call over to our President and CEO, David Lieberman.

Thank you, Omar. Good morning, and thank you for joining us for our third quarter 224 earnings call. I would like to begin by acknowledging that tomorrow is National Indigenous Veterans Day in Canada, a day to acknowledge and commemorate the contributions and sacrifices made by the First Nations, Inuit and Métis soldiers who have served our country. Additionally, Remembrance Day is only a few days away. It is a time for us all to collectively remember and honour those who sacrificed and those that continue to sacrifice in serving our country during times of war, conflict and peace. It's a moment for us to pause and be thankful for the freedoms we enjoy today because of the sacrifices made by others. I also want to take a moment to reflect on the various global conflicts. As events unfold across the world, they can have deep and profound impact on us all. The news of innocent lives lost can be overwhelming. It is important that we support one another during these times. I want to extend my support and sympathy to those that have been affected by these global events. Turning to the quarter, This morning, I will provide an update on our recent activities, and then Harry will take you through the third quarter financial results. In the spirit of looking after one another, I'm very proud of the Hydro One team who took time away from their families, including over Canadian Thanksgiving, to participate in relief efforts following Hurricanes Helen and Milton. Our thoughts and prayers are with our neighbours affected by those catastrophic events. In response, Hydro One sent 150 skilled employees to Georgia and Florida to restore power. We were proud to answer the call during their time of need. Time and time again, our teammates demonstrate how Hydro One is always caring for others. This commitment to care was also evident during our annual Power to Give campaign. In the month of September, Hydro One employees demonstrated their generosity and community spirit, donating and contributing more than 4,500 volunteer hours during the month. This is a remarkable achievement that will make a meaningful impact for those in need across our communities. I'm incredibly proud of our employees' efforts and generosity, not only in September, but throughout the year. Their commitment to giving back and supporting our communities is the core value of Hydro One's culture and one they embody every day. As I've mentioned on prior calls, the demand for electricity in Ontario continues to grow. This being driven by population growth, energy transition, and new manufacturing capacity, such as investments being made by Stellantis, Volkswagen, and Honda. All of this is leading to greater economic growth in the province. Consequently, the Independent Electric System Operator, IESO, recently increased its energy demand forecast through to 2050. The IESO is now estimating a 75% increase in electricity demand over the next 25 years, which is higher than the 60% previously forecasted. The IESO estimates new large potential projects such as data centres, commercial sector building electrification, EV production and its supply chain to contribute to the forecasted increase in demand. To meet the increased demand for electricity, work in the province is well underway, building more generation, building new transmission lines, integrating new technologies, and expanding energy efficiency programs. Hydro One is part of this growth and continues to play a critical role in meeting the increased demand and supporting the province's electrification goals. Whether it's through our investments in transmission and distribution systems, connecting new generation energy storage solutions, or using new technology in our control systems, we are building a grid to power Ontario's future. Together with industry and Indigenous communities, we will ensure a reliable, resilient, and sustainable energy system for our children and grandchildren. I'm happy to report our new transmission projects continue moving forward. During the quarter, Hydro One received approval from the Ministry of Environment, Conservation, and Parks on the final environmental assessment report for the Wassigan transmission line. This approval paves the way for construction activities to commence, allowing for shovels in the ground before year-end. The total expected investment in the line will be $1.2 billion and will bring an additional 350 megawatts of electricity to the region to meet current and future energy needs of Ontario's Northwest communities. As a reminder, the line will be completed in two phases, with Phase 1 of the project targeted to be in service in 2025 and Phase 2 to be in service in 2027. Our Chatham Lakeshore transmission line project, which began construction in spring of 2023, remains on track for completion by the end of 2024. Commissioning tests are progressing well, and we expect to have the line fully operational by year end, completing the project one year ahead of schedule and under budget, as previously disclosed. Once complete, the line will provide clean electricity to support the growth in agri-food and manufacturing industries, as well as a growing population in southwestern Ontario. adding 400 megawatts of clean electricity to the region. We are proud that both the Wasagon and Chatham Bay Lakeshore transmission lines will be co-owned with Proximate First Nations through Hydro One's equity partnership model. We are also pleased to report significant progress in our regulatory efforts. Settlements in principle have been reached for three five-year revenue requirement applications for three of our transmission partnerships, including the Bruce to Mills Limited Partnership, the Niagara Reinforcement Limited Partnership, and the Chatham by Lakeshore Limited Partnership. On October 21, 2024, in collaboration with parties from the settlement conferences, Hydro One filed settlement agreements with the Ontario Energy Board, or OEB, for the Bruce to Milton Limited Partnership and the Niagara Reinforcement Limited Partnerships. These agreements outlined total revenue requirements of $193 million for Bruce to Milton and $45 million for the Niagara Reinforcement over the five-year period. The settlement proposals accepted the rate-making framework proposed by the partnerships including a modest 3% reduction in proposed OM&A expenses over the period and an additional 0.15% stretch factor. With respect to the Chatham by Lakeshore Limited Partnership, Hydro One has reached the settlement agreement of principle and expects to file this proposal with the OAB shortly. These settlement proposals support investment in our infrastructure to maintain a safe and reliable system that meets our customers' needs and highlights the constructive regulatory framework in Ontario. These achievements mark significant success for Hydro One and our First Nations partners. Once approved, the proposed settlement will provide revenue and cost certainty for the project from 2025 to 2029. Final approvals from the OAB are expected by year end. Separately, in late October, the OAB released the cost of capital parameters for 2025. The deemed ROE was formulaically updated to 9.25%. It will be the applicable rate for these settlement agreements. The rate will remain fixed the duration of the rate period. In other news, I am pleased that our good work and collective efforts continue to be recognized by others. We were recently named one of Canada's most responsible companies for 2025 by Newsweek. The list recognizes companies across 13 industries that are committed to climate, social welfare, and responsible governance. This award reflects the hard work and dedication of our entire team to positively impact our communities and the environment. Hydro One is dedicated to responsible business practices that balance sustainability social responsibility, and governance. We take a holistic view of corporate responsibility that considers how these topics are incorporated deeply into our business. Through our actions, Hydro-One strives to be a responsible corporate citizen contributing to a better future for all Canadians. We were also honoured to receive the Powerline Safety Award from the Electrical Safety Authority in recognition of our role in enabling the safe delivery of very large pieces of equipment to a brewery in southwestern Ontario. In collaboration with our partners, Hydro-One raised and lowered conductors along a 117-kilometer route, allowing for the safe movement of the equipment while minimizing the impact on customers. This award is a testament to the power of partnership and our collective efforts to achieve an objective without compromise and safety. With that, I will turn the call over to Harry to discuss our financial results. Harry, over to you.