The Town of Collingwood is getting out of the electricity business after council voted to sell its stake in the local utility company.
During a special meeting on Monday afternoon, the town made the decision to sell its share of Collus PowerStream. The town owns 50 per cent, while the other half is owned by Alectra Utilities.
“The purchase price and the terms established by the town will maximize the value of the shares and it’s in the best interest of the Town of Collingwood,” says Collingwood Mayor
The town is hoping to receive between $12.5 million and $13 million.
Council is hoping to sell the shares to an Edmonton based company called EPCOR. However, under the town’s current agreement, Alectra gets the first option to buy the shares. They have 20 days to make a decision.
Alectra could also sell its shares to EPCOR, making it the sole owner.
Other terms of the sale include a 25 year lease on the utility’s headquarters and some job retention guarantees for employees.
The transaction could take up to a year to finalize and also has to be approved by the Ontario Energy Board.
