Ontario moves ahead with sale of Hydro One Brampton

Bramptonguardian.com
March 27, 2016

Ontario is moving forward with the sale of Hydro One Brampton.

Mississauga Mayor Bonnie Crombie joined mayors from Markham, Vaughan, Barrie, Hamilton and St. Catharines March 24 for a signing ceremony to mark a utilities merger that will culminate in the purchase of Hydro One Brampton from the provincial government.

When PowerStream, Enersource and Horizon merge to buy Hydro One Brampton, the amalgamation will create the second largest electricity distributor in Ontario.

It would serve customers in Peel, York, Hamilton, St. Catharines and Simcoe County.

Mississauga, Barrie, Markham, Vaughan, Hamilton and St. Catharines municipal councils have already approved the merger and purchase.

The City of Mississauga is the majority shareholder of Enersource. Markham is the principle shareholder of PowerStream and Hamilton and St. Catharines jointly own Horizon.

Ontario has now executed a Share Purchase Agreement with PowerStream, Enersource, and Horizon.

The purchasers have agreed to pay $607 million for Hydro One Brampton.

MergeCo is the temporary name of the new utility company that will have head offices in Mississauga.

“This new utility company will provide the residents of Mississauga with cost savings, new efficiencies, and improved customer service, along with safer, reliable and clean electricity,” Crombie said in a statement.

Crombie will sit on the Transitional Committee and Board of MergeCo.

The transaction and the creation of the new company are subject to certain closing conditions, including Competition Bureau and Ontario Energy Board (OEB) approval, expected later in 2016.

The new company has forecast a downward pressure on electricity rates of $40 per year for an average customer, according to the provincial government.

Hydro One acquired Hydro One Brampton from the City of Brampton in 2001.