The Corporation of the Town of Espanola in partnership with the Township of Sables-Spanish Rivers have established a steering committee to evaluate a potential sale of Espanola Regional Hydro.
This strategic direction is due to the electricity industry witnessing significant changes in operations and regulations, resulting in the consolidation of the number of Ontario municipal electrical utilities (MEUs) from approximately 307 to under 70. This sector has become increasingly complex over the past 18 years and as a result management teams at smaller Ontario LDCs (under 30,000 customers) have become overwhelmed by the diverse demands placed on them by the current regulatory, political, economic and technological environment.
“Espanola Regional Hydro is a very small LDC, as of the end of 2015 it ranked 61st out of 67 LDC’s, our relatively low return on investment, combined with the diverse demands has made us take a hard look at our options” stated Ron Piche, Mayor for the Town of Espanola. “In 2015, The Government of Ontario announced in its budget, a three-year exemption from the Transfer Tax for LDC’s with fewer than 30,000 customers,” stated Les Gamble, Mayor for the Township of Sables-Spanish Rivers, “The timing is right for us to review our options. It is happening all around us, a number of LDC mergers have either already taken place, are in the process or are our just like us, in the exploratory stages.”
Both Councils agree that their main focus is to ensure affordable, reliable and sustainable electricity distribution to both communities by exploring options that will provide the best value and return on investment for the residents. The Town of Espanola currently owns 81.0% of Espanola Hydro and Sables-Spanish Rivers the remaining 19.0%; servicing 3289 customers.
For more information contact:
|Cynthia Townsend, CAO/Treasurer
Town of Espanola
P 705 869 1540 ext 2102
|Kim Sloss, Clerk-Administrator
Township of Sables-Spanish Rivers
705-865-2646 ext. 222