John Tory denies report Hydro One is in talks to buy Toronto Hydro

Reuters story cited two unnamed sources that Tory and Premier Kathleen Wynne part of talks that included CEOs of the two utilities to sell Toronto Hydro to Hydro One for $3 billion.

Thestar.com
March 4, 2017
By David Rider

Toronto Mayor John Tory is discounting a leaked news report Saturday that said Hydro One is in talks to buy Toronto Hydro.

“I can confirm that no discussions are taking place with respect to the sale of Toronto Hydro to anyone,” said Tory in an emailed statement to the Star.

The story by Reuters cited two unnamed sources with information that Tory and Premier Kathleen Wynne were part of discussions that included Toronto Hydro CEO Anthony Haines and Hydro One CEO Mayo Schmidt to sell the utility for $3 billion.

Tory said he would not support any proposal to sell the municipal electricity distributor and that he was looking for additional investment to ensure Toronto Hydro remained in public hands.

“We are presently exploring how we can make that investment happen on that basis, so that we have a reliable, up-to-date electricity provider for the people of Toronto,” said Tory.

Toronto Hydro spokesperson Brian Buchan reiterated the mayor’s words and said “there is no truth to this rumour, and I am not aware of any talks ... This is out of the blue.”

Talk of a sale has raised the hackles of the public, as well as city councillors, who would have final say over any deal. Toronto Hydro will contribute $25 million to the city’s budget this year.

The city needs millions more to pay for capital infrastructure costs.

Daniel Levitan, the spokesperson for Hydro One, said in an email that the company “will not speculate on rumours.”

The province has already sold 30 per cent of Hydro One and will likely sell another 30 per cent in the next 12 months. But the company has already been restructured and is privately run with a new executive team. And employees that make more than $100,000 at the partially privatized utility will no longer be included on the “Sunshine List.”

The Star revealed, early last year, that officials in Tory’s office and Toronto Hydro had been preparing groundwork for a possible sale of a minority stake in the municipal utility, but that the mayor was not part of those discussions.

But Tory did say in a speech in September that Toronto needed a hard look at selling a minority stake - “unlocking the value that already exists in Toronto Hydro, while keeping it in public hands.”

Councillor Cesar Palacio, who is a member of the mayor’s executive committee, told the Star in November that he had intervened to stop the privatization and said he would never support a sale of the utility.

About 1,000 constituents had signed petitions demanding the electricity distributor remain wholly owned by the City of Toronto.

The city is looking at whether it should sell the Toronto Parking Authority, which operates “Green P” lots and on-street parking.