PowerStream Supports Clark Panel's Vision for Ontario's Electricity Distribution Sector

marketwired.com
Nov. 14, 2014

PowerStream supports the vision for Ontario's electricity distribution sector, Ed Clark, Chair of Premier Kathleen Wynne's Advisory Council on Government Assets, outlined in his interim report released Thursday. In order to achieve further efficiencies in Ontario's electricity industry, Clark and his panel of experts are recommending the voluntary consolidation of distribution assets across the province, spurred by changes in the provincial government's ownership of distribution assets. Among other steps, the report calls for the creation of a large GTA-based distribution utility.

PowerStream has demonstrated the benefits of utility consolidation since its inception in June 2004 when it was formed through the merger of utilities in Markham, Vaughan and Richmond Hill. Subsequent consolidations including the acquisition of Aurora Hydro in 2005, the merger with Barrie Hydro in 2009 and the 50% acquisition of Collus PowerStream in 2012, have also illustrated the energy company's commitment to this model.

Furthermore, the benefits PowerStream has derived through efficiencies gained as a result of consolidation have facilitated the company's ability to invest in non-regulated businesses that provide more comprehensive energy solutions for customers as well as attract talent to the organization.

PowerStream also looks forward to continuing a dialogue with the panel during phase II of the review, which will deal with tax and other issues to facilitate the transformation of the industry as outlined in the panel's initial report.

QUOTES
"Distribution companies need to gain scale through consolidation in order to lower expected costs for consumers and have greater access to capital to allow them to adapt to and invest in the emerging electricity marketplace and its new technologies," explained Maurizio Bevilacqua, PowerStream Board Chair and Mayor for the City of Vaughan. "There is significant potential for Ontario's electricity distribution sector and we believe that the Panel's recommendations can further PowerStream's strategy for growth, innovation and efficiency."

BACKGROUND
The Advisory Council on Government Assets was appointed by the Ontario government in April to recommend ways to improve the efficiency and optimize the full value of key government assets including Hydro One, Ontario Power Generation (OPG), and the Liquor Control Board of Ontario (LCBO).