Establishment following Ontario Hydro reorganizationIn 1906, under Ontario’s Power Commission Act, the Hydro-Electric Power Commission of Ontario (HPEC or Ontario Hydro) was established. The company was created in order to build transmission lines to supply utilities with electricity generated by private companies already established in Niagara Falls. In 1999, the company was reorganized into five separate companies, including two commercial entities – Ontario Power Generation and Hydro One. Hydro One is now responsible for electricity transmission and distribution, with its distribution segment generating close to five billion Canadian dollars every year.
Financials and service areaThe company operates a large majority of the high voltage transmission grid across Ontario and distributed 27.5 terawatt hours of electricity in 2019. That year, Hydro One’s total revenues reached 6.48 billion Canadian dollars. Competitor Alectra generated 3.78 billion Canadian dollars in the same time period.
Hydro One has several subsidiaries in Ontario including Hydro One Networks which serves the majority of rural regions in the province, and Hydro One Remote Communities which serves 22 communities that are not connected to the grid. It is currently one of the largest government-owned electricity agencies in Canada. However, in 2015, the Government of Ontario began to sell Hydro One shares to the public. The provincial government planned to sell up to 60 percent of the company but promises to hold 40 percent of its share. Since 2004, electricity prices in Ontario have decreased notably, falling to an average of 1.36 Canadian dollar cents per kilowatt hour in 2020.