Update on Hydro Share Sale

22 August 2017 – Council received an update on the hydro share sale progress during the in-camera portion of the August 21, 2017 Council Meeting.

Although it had been hoped that the process would be finalized by the end of the summer, Council was advised there are still negotiations that have to take place and that the timeline will extend into the fall.

In order to ensure the process carries on uninterrupted, Council voted to direct the municipality’s legal counsel at Borden Ladner Gervais LLP, and CAO John Brown to continue negotiations with EPCOR and prepare the required draft agreements.

If this process takes longer than expected, the Solicitors recommendation approved by Council allows staff continuity on this matter.This will ensure that Collingwood, and its citizens’ interests are protected given that the existing 2012 Unanimous Shareholders Agreement (USA) limits Council’s ability, for all practical purposes, to engage in detailed public input and disclosure, before Council makes any final decisions on the Town’s remaining hydro shares.

At this point, the discussions with EPCOR are focused on detailed legal terms and conditions, which requires confidential advice from our solicitor and direction from Council. If the Town initiates the sale process under the USA for its remaining interest in Collus PowerStream, Alectra will have the option to buy the Town's shares.

The public will continue to be advised of any further updates when available, subject to the limits of the existing Unanimous Shareholders Agreement.

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 Shareholders Agreement with PowerStream entered into by the previous Collingwood Council, 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 Shareholders Agreement. 

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

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For more information, contact:

Communications Officer
Jennett Mays
T. 705-445-1030 Ext. 3293
jmays@collingwood.ca