Saturday, April 14, 2018
Mayor "Surprised" by OEB Rejection
Steve Clarke says City will go over decision, deal would have seen Orillia Power Distribution sold to Hydro One.
Orillia Mayor Steve Clarke calls the Ontario Energy Board's decision "surprising".
He is reacting to the rejection of the City's sale of the distribution arm of Orillia Power to Hydro One on Thursday.
In a statement, the City says it will review the decision and explore what options are available moving forward and staff will report to council.
The City began talks with Hydro One in 2015.
Clarke said when the deal was finalized in 2016, it was going to be one of the largest investments in the City's history.
The deal included $26 million dollars for the purchase of Orillia Power Distribution, and the development of a technological hub in the Horne Business Park.
He says they believed the deal fulfilled all the requirements set out by the OEB.
Clarke says the reason the deal was made in the first place was because they need to find opportunities to bring jobs to Orillia.
He says the city has the lowest average family income in all of Simcoe County.
Clarke says the OEB stated there was an issue with what the rates might be in Years 11 and 12.
He says that is what they will be looking at if they intend on appealing the decision.
Premier Kathleen Wynne called the rejection of the sale a win for consumers, something Clarke says was interesting to hear.