Entegrus Powerlines Inc.

Overview Key strengths Key risks Low operational risk and regulated electricity distribution business with minimal exposure to nonregulated operations. Limited geographic and regulatory diversity, with small operation scale serving about 60,000 customers in Southern Ontario. Effective management of regulatory risk through the use of regulatory mechanisms supported by the Ontario Energy Board (OEB). Financial measures at the lower end of the intermediate category, reflecting its limited cushion. Residentially focused customer base provides some stability to cash flow. Passes commodity cost risk through to customers. . We expect the company?s essential electricity distribution operations will continue to benefit from the credit-supportive regulatory framework in the Canadian province of Ontario, which supports its financial measures. On a forward-looking basis, we forecast funds

...We expect Entegrus Powerlines Inc. (EPI) to continue effectively managing its regulatory risk. We expect the company's essential electricity distribution operations will continue to benefit from the credit-supportive regulatory framework in the Canadian province of Ontario, which supports its financial measures. On a forward-looking basis, we forecast funds from operations (FFO) to debt will remain about 15%-16%, which is at the lower end of the range for the intermediate financial risk profile category based on our low- volatility financial benchmark table. New rate case will be effective Jan. 1, 2023. On Dec. 18, 2022, the OEB approved EPI's August 2022 incentive rate setting mechanism (IRM) application for the new rate effective from Jan 1, 2023 for the St. Thomas rate zone and May 1, 2023 for the Main rate zone. As the part of this decision, the OEB approved a monthly total bill increase of C$6.67 in its Main rate zone effective May 1, 2023, and an increase of C$4.78 in its St. Thomas...

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