-- Toronto Hydro Corporation has announced that its wires company - Toronto Hydro-Electric System Limited -- will purchase a full 25% of its in-house electricity needs over the next five years from green power sources. An initial commitment of 5% will flow from the wind turbine currently under construction at Exhibition Place. The wind turbine is a 50-50 joint venture project of the Corporation's retail affiliate, Toronto Hydro Energy Services Inc., and the Toronto Renewable Energy Co-operative.

The announcement, which makes Toronto Hydro-Electric System Limited the first municipal distribution utility in Ontario to commit to purchasing 25% of the power used for the utility's operations from green energy sources, was made at a media launch organized by Friends of the Earth in Toronto today. At the launch, Friends of the Earth honoured Canadian companies that have become members of the recently-established Green Electricity Leaders' Coalition of Ontario (GELCO), an initiative designed to help stimulate demand for green energy in Ontario's new electricity market.

"This is an historic day for Toronto Hydro Corporation," said Dr. Richard Lu, Vice President, Environment, Health & Safety, Toronto Hydro Corporation. "We led the way two years ago, when we became the first energy company in Ontario to establish a retail affiliate with a goal of supplying and generating alternative clean and green energy. Today, we've reached another milestone. Given the choices now available in Ontario's new electricity market, and the need to reduce the number of smog alerts in Ontario's largest city, Toronto Hydro Corporation is making a clear choice for clean power and cleaner air."

Currently, the Corporation's wires company uses 21,000 megawatt hours of electricity each year at its ten facilities. The displaced CO2 is equivalent to the amount of CO2 absorbed by 40,000 trees or the same amount that would be created by taking 2,100 vehicle trips from Toronto to Hamilton, roughly 1.5 million kilometres. "Friends of the Earth congratulates Toronto Hydro- Electric System Limited for its purchase of green power and its leadership role in offering green power to residential and commercial customers through its retail affiliate, Toronto Hydro Energy Services," says Beatrice Olivastri, CEO. "Choosing green power in the new electricity market is a positive step for improving Ontario's air quality while reducing our dependence on fossil fuels."

Today's was the second announcement in as many weeks in which Toronto Hydro Corporation demonstrated its pioneering approach to CO2 emissions reduction. In late May, the Corporation's wires company received an Award of Excellence from the National Transportation Week Ontario Committee in recognition for its use of biodiesel fuel in 80 of the company's 811 vehicles, and will convert its entire diesel fleet to biodiesel starting July 1, 2002. Biodiesel is a renewable, non-toxic diesel fuel substitute that is derived from soybean oil and then blended with 20% petroleum diesel.

As part of its carbon dioxide emissions reduction strategy, the wires company also uses compressed natural gas in 45 of its vehicles, is testing two electric/gas hybrid cars and runs 400 light duty cars, vans and trucks on a mixture of 10% ethanol and 90% gasoline.

The Corporation's wires company also recently completed a conversion of the air conditioning, heating and lighting systems at its ten facilities (1.2 million square feet) to more environmentally-friendly systems, an energy conservation project that will reduce the wires company's electricity consumption by over 410,000 kilowatt hours per year.

Additional environmental leadership initiatives from Toronto Hydro Corporation's retail affiliate include plans for a second wind turbine to be located at the Ashbridge's Bay Sewage Treatment Plant and a feasibility study with Boralex Inc. for the construction of a 150 megawatt cogeneration plant at Paperboard Industries in Toronto's Portlands area.

Corporately, Toronto Hydro Corporation is a major sponsor of the City of Toronto's Tree Advocacy Program, which planted 18,000 native trees in 2001 and 10,000 to date in 2002, and is sole sponsor of Local Enhancement and Appreciation of Forests (LEAF), a local non-profit organization dedicated to backyard tree planting. The Corporation will issue its first Environmental Report in October 2002.

Toronto Hydro Corporation is wholly-owned by the City of Toronto and operates five affiliate companies - Toronto Hydro-Electric System Limited, Toronto Hydro Energy Services Inc., Toronto Hydro Telecom Inc., Toronto Hydro Street Lighting Inc. and EBT Express.