The City of Peterborough and Hydro One have reached an agreement for Hydro One’s acquisition of Peterborough Distribution Inc. (PDI) from the City for $105 million plus terms that include distribution rate guarantees for customers as well as a separate agreement for the construction of a new regional operations centre in Peterborough.
The agreements comprising the transaction meet the terms and conditions approved by Council, including:
- A 1% distribution rate reduction and a five-year freeze in distribution rates for customers - A second five-year period with distribution rate increases limited to inflation and an earnings sharing mechanism to offset rates in year 11 and onward - Protections for PDI employees with employees receiving employment offers to move to Hydro One - A sale price of $105 million - An agreement to develop a regional operations centre and new fleet maintenance facility in Peterborough on specified pieces of land to be acquired concurrently with the closing of the acquisition of the assets of PDI following regulatory approvals
The agreements are subject to Ontario Energy Board (OEB) approval. The OEB regulates the province’s energy sector, including setting rules for electricity companies and establishing rates that energy utilities are permitted to charge.
PDI is one part of the Peterborough Utilities group of companies. PDI includes the “poles and wires” business of Peterborough Utilities. City of Peterborough Holdings Inc. retains ownership of the rest of the group of companies, including its water utility, the Riverview Park and Zoo, metering services, and its power generation business.