CHAPLEAU, ON, Nov. 7, 2023
/CNW/ - Hydro One Networks Inc. (Hydro One) and Chapleau Public
Utilities Corporation (Chapleau Hydro) announced today that they
have signed a definitive agreement for Hydro One to acquire
Chapleau Hydro's distribution business to serve electricity
customers in the Township of Chapleau. The agreement includes purchasing
substantially all of Chapleau Hydro's electricity distribution
assets for approximately $2.3
million, subject to adjustments.
"There are tremendous benefits to our new partnership with Hydro
One. With local Hydro One presence in the Township, available 24/7,
we expect all customers in the Chapleau and surrounding areas will experience
service improvements," said Mayor Ryan
Bignucolo, Township of Chapleau. "Significant investment and
modernization are required within our local electricity system at a
rate and pace that is unaffordable for us as a small community. We
are excited to welcome Hydro One into our community to help us
prepare for the future."
"Hydro One is thrilled to join the Chapleau community and we look forward to
being a meaningful and proud community partner," said Chris Lopez, Chief Financial and Regulatory
Officer, Hydro One. "We are pleased to work with the Mayor of
Chapleau and Chapleau Hydro to
provide the reliable and safe power needed now and into the
future."
Chapleau Hydro serves approximately 1,200 customers and is owned
by the Township of Chapleau. In
May 2023, due to staffing shortages
at Chapleau Hydro, the Ontario Energy Board (OEB), the province's
independent regulator, issued Hydro One an interim license to
operate the distribution system of Chapleau Hydro for six months
while Chapleau Hydro and its shareholder, the Township of
Chapleau, considered the option to
sell the distribution business. A request to extend this license
has been submitted to the OEB. Proceeds from the sale of Chapleau
Hydro are expected to be used to invest in critical core community
services including the Township's water plant, fire services and
airport.
There are no current changes to electricity service for Chapleau
Hydro customers. The acquisition is conditional upon the
satisfaction of customary closing conditions and approval by the
OEB. Hydro One intends to file an application with the OEB by the
end of 2023 for approval of the acquisition.
Hydro One Limited (TSX:
H)
Hydro One Limited, through its wholly-owned subsidiaries, is
Ontario's largest electricity
transmission and distribution provider with approximately 1.5
million valued customers, approximately $31.5 billion in assets as at December 31, 2022, and annual revenues in 2022 of
approximately $7.8 billion.
Our team of approximately 9,300 skilled and dedicated employees
proudly build and maintain a safe and reliable electricity system
which is essential to supporting strong and successful communities.
In 2022, Hydro One invested approximately $2.1 billion in its transmission and distribution
networks, and supported the economy through buying approximately
$1.9 billion of goods and
services.
We are committed to the communities where we live and work
through community investment, sustainability and diversity
initiatives. We are designated as a Sustainable Electricity Leader™
by Electricity Canada.
Hydro One Limited's common shares are listed on the TSX and
certain of Hydro One Inc.'s medium term notes are listed on the
NYSE. Additional information can be accessed at www.hydroone.com,
www.sedarplus.com or www.sec.gov.
Forward-Looking Statements and
Information:
This press release and the application and investment plan to
which it refers may contain "forward-looking information" within
the meaning of applicable securities laws. Words such as "expect",
"anticipate", "intend", "attempt", "may", "plan", "will", "can",
"believe", "seek", "estimate", and variations of such words and
similar expressions are intended to identify such forward-looking
information. These statements are not guarantees of future
performance or actions and involve assumptions and risks and
uncertainties that are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed,
implied or forecasted in such forward-looking information. Some of
the factors that could cause actual results or outcomes to differ
materially from the results expressed, implied or forecasted by
such forward-looking information, including some of the assumptions
used in making such statements, are discussed more fully in Hydro
One's filings with the securities regulatory authorities
in Canada, which are available on SEDAR+
at www.sedarplus.com. Hydro One does not intend, and it
disclaims any obligation, to update any forward-looking
information, except as required by law.
SOURCE Hydro One Inc.