This report does not constitute a rating action. 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 63,000 customers in Southern Ontario. Effective management of regulatory risk through the use of regulatory mechanisms supported by the Ontario Energy Board (OEB). Negative discretionary cash flow leading to external funding needs. Residentially focused customer base provides some stability to cash flow. We believe the company?s essential electricity distribution operations will continue to benefit from the credit-supportive regulatory framework in the Canadian province of Ontario, which generally allows EPI to recover prudently incurred operating and capital expenses in a timely manner. Our
