The city of Orillia isn’t ready to let go of a multi-million dollar deal between Hydro One and Orillia Power Distribution Corporation (OPDC), even after the Ontario Energy Board rejected the deal.
The OEB stated last month that it would not hear an appeal on the matter saying it was concerned consumers would not see lower rates in the long-term.
On Tuesday at a special meeting, council heard OPDC and Hydro One would be re-filing the application to the OEB anyway.
In a statement, Orillia mayor Steve Clarke says it's too good of a deal to walk away from.
“The City of Orillia as the sole shareholder of OPDC is continuing down the Council-approved path to sell our local distribution company,” said Mayor Steve Clarke. “The OEB has not ruled on a key element of the deal which is a commitment from Hydro One that in year 11, after ten years of lower distribution rates with Hydro One, Orillia customers will be no worse off than if we had retained OPDC."
The mayor went on to say that it's in the city's best interest to pursue a deal that "offers $200 to $300 million in near-term economic impact in the community and lower distribution rates for 10-plus years.”
Legally, council was informed Tuesday that as part of the original proposed deal, they must refile the agreement.
If the sale is successful, the agreement guarantees that distribution rates would be reduced by one percent and frozen for five years, followed by inflationary increases for years six through ten.
The power companies will be working together over the coming weeks to refile the application with the OEB.
