Collingwood to seek proposals for sale of utility company shares

Simcoe.com
Aug. 9, 2016
John Edwards  

The Town of Collingwood has taken another step in potentially divesting itself of its 50-per-cent share of Collus Powerstream.

After a closed-door session during which they received advice from solicitor Mark Rodger, council voted to send out a request for proposal (RFP) to potential buyers for the shares.

Unlike a standard municipal RFP, the proposal will be sent privately to companies in the electricity industry to gauge interest in a potential sale.

CAO John Brown said because the town has a partner, they must keep the information private.

Mayor Sandra Cooper said a timeline has not been set for when the RFP will be sent out but is hoping for the fall.

“Council supported looking at options,” she said.

The vote was 7-2 with Mayor Sandra Cooper and Coun. Kevin Lloyd voting against.

In 2012, the municipality sold 50 per cent of its stake in Collus Power to PowerStream in a deal that included $8 million in cash, $4.2 million in recapitalization, and a $1.7 million promissory note.

Rodger has been in the electricity sector for a number of years and in February was directed by council to look at options for the utility.