- Merger of longtime neighbours will
deliver long-term value through exceptional customer service,
greater efficiencies and local investments -
TORONTO, April 30, 2020 /PRNewswire/ - Hydro One
Limited (TSX: H) ("Hydro One") announced today that the Ontario
Energy Board ("OEB") has approved the applications for the
acquisitions of Ontario-based
utilities Orillia Power Distribution Corporation ("OPDC") from the
City of Orillia, and the business
and distribution assets of Peterborough Distribution Inc. ("PDI"),
from the City of Peterborough.
"We look forward to welcoming our new customers and employees to
the Hydro One family," said Mark
Poweska, President and CEO, Hydro One Limited. "These strong
partnerships will energize life in the City of Orillia and the City of Peterborough for years to come through
our continued investment in exceptional customer service, safe and
efficient operations, and community initiatives. We would like to
thank Mayor Clarke and Mayor Therrien, Orillia and Peterborough
City Councils, and the OPDC and PDI teams for their dedication and
partnership."
Copies of the decisions are available on the OEB's website:
Decision regarding OPDC:
http://www.rds.oeb.ca/HPECMWebDrawer/Record/675935/File/document
Decision regarding PDI:
http://www.rds.oeb.ca/HPECMWebDrawer/Record/675963/File/document
Orillia Power Distribution Corporation
On August 15, 2016, Hydro One
announced that it had agreed to acquire 100 per cent of OPDC for
$26.35 million and assume
approximately $14.9 million of debt
and regulatory liabilities for a total transaction value of
$41.3 million. OPDC serves
approximately 14,000 customers in Central
Ontario. The deal is expected to close in the coming
months.
Construction has started on Hydro One's new grid control centre
in Orillia, which will be home to
150-250 highly skilled employees working to ensure electricity is
moving safely across the province to Hydro One's 1.4 million
residential and business customers.
Once the OPDC transaction deal has closed, Hydro One anticipates
making additional investments in the Orillia community, such as the
development of a new provincial warehouse and regional operations
centre.
As part of the agreement, base distribution charges for OPDC
customers will be reduced by one per cent and frozen for five
years, followed by increases at or near inflation for years
6-10.
"During such a challenging economic climate due to COVID-19, the
OEB's approval of the sale of OPDC to Hydro One and the significant
investments to be made in Orillia
as a result of this decision is a beacon of light. The sale of the
distribution arm of Orillia Power to
Hydro One will bring tremendous growth and investment to the
City of Orillia. I would like to
thank Hydro One for its commitment to investing in Orillia and the strong community support they
have demonstrated. We look forward to officially welcoming you to
the Sunshine City," said Steve
Clarke, Mayor of Orillia.
Peterborough Distribution Inc.
On August 1, 2018, Hydro One
announced that it had agreed to acquire the business and
distribution assets of PDI for a purchase price of $105 million. PDI serves approximately 37,000
customers in the City of
Peterborough and Villages of Lakefield and Norwood. The deal is expected to close in the
coming months.
Once the PDI deal has closed, Hydro One intends to make
investments in the local community, such as the development of a
new operations centre and fleet maintenance facility.
As part of the agreement, base distribution charges for PDI
customers will be reduced by one per cent and frozen for five
years, followed by increases at or near inflation for years
6-10.
"Hydro One's purchase of PDI brings new investments and combines
the City's electricity distribution network with Hydro One's
substantial presence in the broader Peterborough region to bring value and enhance
service quality for customers. The City looks forward to working
with Hydro One on its planned construction of a new regional
operations centre and fleet maintenance facility in Peterborough, once the deal has closed," said
Diane Therrien, Mayor of
Peterborough.
Hydro One Limited (TSX: H)
Hydro One Limited, through its wholly-owned subsidiaries, is
Ontario's largest electricity
transmission and distribution provider with approximately 1.4
million valued customers, approximately $27.1 billion in assets as at December 31, 2019, and annual revenues in 2019 of
approximately $6.5 billion. Our team
of approximately 8,800 skilled and dedicated employees proudly
build and maintain a safe and reliable electricity system, which is
essential to supporting strong and successful communities. In 2019,
Hydro One invested approximately $1.7
billion in its transmission and distribution networks and
supported the economy through buying approximately $1.5 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 Company by the Canadian
Electricity Association. 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.sedar.com or www.sec.gov.
Forward-Looking Statements and Information
This press release 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.sedar.com. Hydro One does not intend, and it disclaims
any obligation, to update any forward-looking information, except
as required by law.
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SOURCE Hydro One Limited