The City of Peterborough announced today (August 1) that the sale of Peterborough Distribution Inc. (PDI) to Hydro One is back on.
Hydro One withdrew from negotiations with the city for the sale earlier this year in March, with no explanation given by either party.
Now the city has reached an agreement for Hydro One to acquire the assets of PDI, with the same terms and conditions originally approved by city council in December 2016:
- A 1 per cent distribution rate reduction and a five-year freeze in distribution rates for customers
- A second five-year period with distribution rate increases limited to inflation and an earnings sharing mechanism to offset rates in year 11 and onward
- Protections for PDI employees with employees receiving employment offers to move to Hydro One
- A sale price of $105 million
- An agreement to develop a regional operations centre and new fleet maintenance facility in Peterborough on specified pieces of land to be acquired concurrently with the closing of the acquisition of the assets of PDI following regulatory approval.
The agreement is still subject to approval by the Ontario Energy Board, which regulates the province’s energy sector.
PDI is one part of the Peterborough Utilities group of companies. PDI includes the “poles and wires” business of Peterborough Utilities. City of Peterborough Holdings Inc. retains ownership of the rest of the group of companies, including its water utility, the Riverview Park and Zoo, metering services, and its power generation business.
PDI serves approximately 37,000 customers in Peterborough, Lakefield, and Norwood.
The media release from the City of Peterborough includes the following quote from Patrick Meneley, Executive Vice-President and Chief Corporate Development Officer with Hydro One:
“Hydro One looks forward to welcoming the customers and employees of Peterborough Distribution to our family. This merger is structured to benefit stakeholders and provides us the opportunity to leverage our scale to positively impact distribution rates and quality of service. Hydro One has served customers around Peterborough for many years and we look forward to extending our service and growing our operations in the vibrant communities in and around Peterborough.”
Peterborough Mayor Daryl Bennett also released the following statement on today (August 1):
“Proceeds from the sale of Peterborough Distribution Inc. should be reinvested, preferably in Peterborough Utilities, to increase the annual return on that investment for property taxpayers. The principal should not be spent for any other purpose beyond investment. Increasing the annual return on that investment would reduce the tax burden on residents. We need to continue to look for ways to reduce costs and increase revenues to provide relief for property taxpayers.”
