Hydro Share Sale

Next Steps

The Town of Collingwood and EPCOR, along with Mark Rodger, the municipality’s legal counsel at BLG, will host a Public Information Session on Thursday, November 23, at 7:00 p.m. at the third floor of the Collingwood Public Library and Municipal Offices, to discuss the recent hydro share sale.

The Public Information Session will provide further details of the agreement. Representatives from EPCOR will make a presentation, sharing their objectives and vision for the company and its ratepayers. Residents are assured that electricity distribution rates are set, and will continue to be set by the Ontario Energy Board (OEB).

Background

The Town’s RFP process, which began in September of 2016, solicited proposals from a wide range of potentially interested parties with a view to maximizing the value of the Town’s remaining investment in Collingwood PowerStream Utility Services Corp. Given the terms of the existing USA with PowerStream, the Town has very limited options regarding how it may monetize its remaining 50% investment in the local electricity distribution company and must adhere to the requirements set out in the USA. 

At the meeting held January 30, 2017, Council decided to pursue discussions with EPCOR who had also proposed a services arrangement to operate the Town’s water and wastewater system under the Town’s continued ownership. However, at the Council meeting held April 25, 2017 Council decided not to consider water and wastewater in potential hydro share sale negotiations with EPCOR.

At a Special Council Meeting on October 23, 2017, Council has agreed to sell its 50% stake in Collus PowerStream, the local distribution company, owned by the Town of Collingwood and Alectra (formerly PowerStream). On November 10, 2017, the Town of Collingwood received confirmation that Alectra Utilities has decided to sell their stake in Collus PowerStream to the municipality. EPCOR will become the sole owner, purchasing 100% of the utility from the Town. An application will now be made to the Ontario Energy Board to approve the transaction. This process could take anywhere from three months up to one year.

 

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