Ontario lawyers head to court June 12 in bid to dismiss CUPE lawsuit aimed at stopping Hydro One sale

But the date will come a month after the final block of Hydro One shares hit the market Tuesday, raising an estimated $2.8 billion.

Thestar.com
May 9, 2017
By Rob Ferguson

In a case of curious timing, Ontario government lawyers head to court June 12 to seek dismissal of a Canadian Union of Public Employees lawsuit aimed at halting the sale of more Hydro One shares.

But the date will come a month after the final block of Hydro One shares hit the market Tuesday, raising an estimated $2.8 billion.

Energy Minister Glenn Thibeault defended the release of 120 million more shares at $23.25, saying the government has long telegraphed its plan to sell up to 60 per cent of Hydro One to finance $9 billion in infrastructure development, including transit projects, and debt reduction.

“I don’t think today’s sale was a surprise. We’ve been publicly clear about our commitment to broaden the ownership,” Thibeault told reporters.

Hydro One shares closed at $23.13 on the Toronto Stock Exchange, down 90 cents or 3.75 per cent from Monday on trading of 5.4 million shares.

NDP Leader Andrea Horwath said the government’s decision to sell off another 20 per cent stake in Hydro One on Tuesday was a sign of “arrogance.”

“With a year to go, she pokes the people of Ontario in the eye on her way out the door by selling off another batch of shares of Hydro One,” said Horwath, referring to the next provincial election on June 7, 2018.

Thibeault said the CUPE lawsuit is “without merit,” which government lawyers expanded upon in a 56-page filing to have the Ontario Superior Court of Justice dismiss the challenge as “frivolous and vexatious.”

“The courts have consistently held that political considerations are a legitimate part of government decision making and cannot form the basis for a claim in malfeasance,” the government’s factum states.

“The broadening of ownership of Hydro One is explicitly authorized by statute and is thereby the clear policy choice of the Legislature,” it adds.

CUPE filed the malfeasance suit in early December against Premier Kathleen Wynne and two cabinet ministers, calling the Hydro One a “vital asset” the Liberal government has “no mandate” to sell.

Horwath said her promise to buy back Hydro One shares over eight years if the NDP is elected in 2018 could take longer now that the final tranche of stock has been sold.

“We’re going back to our calculators.”

Thibeault said the government may raise slightly more than the projected $9 billion depending on results of an “over-allotment option” of 12 million additional shares.