Ontario Energy Board investigating composition of Collus Powerstream board

Simcoe.com
Sept. 21, 2016
By John Edwards

The Ontario Energy Board is investigating Collus Powerstream, specifically looking into whether the composition of the board of directors meets the rules.

Karen Evans, director of corporate and communications, told Simcoe.com investigators are looking into whether the current composition of the board of directors is within the rules outlined in the Affiliate Relationships Code.

“The Affiliate Relationships Code (ARC) lays out the rules for how monopoly utilities deal with their affiliated companies,” Evans said. “One of the key objectives of the ARC is to ensure that ratepayers are not harmed by these affiliate relationships.”

According to a letter on Wednesday’s Strategic Initiatives Committee agenda from Sophie Rousseau, advisor for consumer protection and industry performance for the OEB, the investigations centers around section 2.1.2 of the ARC.

The section says: "A utility shall ensure that at least one-third of its board of directors is independent from any affiliate."

The current board is comprised of Town of Collingwood clerk and board co-chairperson Sara Almas, CAO John Brown, treasurer Marjory Leonard, Powerstream President Brian Bentz, Dennis Nolan Executive Vice-President Corporate Services and Secretary for Powerstream, and board co-chairperson Dan Horchik.

In June, Collingwood council replaced Mayor Sandra Cooper, David McFadden and John Wortz with the three staff members.

In her letter, Rosseau said she plans to meet with Collus Powerstream staff later next week or in early October.

The issue was discussed at a the meeting on Wednesday  and Deputy Mayor Brian Saunderson said the shareholders agreement requires two-thirds of the board members be independent from the shareholders, while OEB rules require one-thirds.

“My understanding the town has always been compliant,” said CAO John Brown.

Brown said the appointment of three town staffers was intended to be a “temporary solution.”

“I will make sure that is fully communicated to the inspector if she’s not fully aware of it,” Brown said. “There was never any intent to put us on a permanent basis because it’s not allowed for it.”

Evans said there could be consequences depending on the outcome of the investigation.

“If we find that a utility has broken the rules, the OEB has a number of actions it can take including requiring the utility to comply with the rules or applying penalties,” she said. “The OEB’s process for this includes giving the utility a chance to present its side of the story before we make our final decision.”