Hydro One Ltd.: Meeting with Management

Research evidence excerpt

Hydro One Ltd.: Meeting with Management

Equity Research

North America Power & Utilities

15 May 2026

Hydro One Ltd.

Meeting with Management

We come away from our meeting with management feeling

much better about the upcoming JRAP application in light of

the recent OEB denial of storm cost recovery. Remain H.TO/H CT OVERWEIGHT Unchanged

Overweight. North America Power & POSITIVE Utilities

Unchanged

Yesterday, we met with Hydro One management in Toronto. In attendance were current Price Target CAD 63.00

President and CEO David Lebeter (retiring in June), CFO & Regulatory Officer Harry Taylor, Unchanged

Director of IR Wassem Khalil, and IR Manager Paul Tan. Price (13-May-26) CAD 58.77

Potential Upside/Downside +7.2%

Joint Rate Application (JRAP) timeline: Hydro One will file its application on or by October 1, Source: Bloomberg, Barclays Research

2026. If the case goes to hearings, the company would expect a decision roughly one year after

the date of the filing.

Market Cap (CAD mn) 35249

Shares Outstanding (mn) 599.78Substantial increase in the capital program expected: Management stressed the JRAP

Free Float (%) 51.98application is still being finalized but did not rule out a doubling of the capital plan for the next

52 Wk Avg Daily Volume (mn) 1.6five-year 2028-2032 period as an order of magnitude. This could drive double-digit rate base

Dividend Yield (%) 2.40CAGR. Management said rate base and EPS growth is not expected to be linear but rather

Return on Equity TTM (%) 10.95accelerate over the course of the five-year period.

Current BVPS (CAD) 21.41

Additional requests in the JRAP application could include a higher equity thickness, an Source: Bloomberg

increased earnings sharing threshold, and concurrent return on CWIP. Hydro One feels the