The Corporation of the Town of Collingwood and EPCOR Collingwood Distribution Corp. have applied to the Ontario Energy Board for approval of two share purchase transactions that would result in EPCOR Collingwood Distribution Corp. becoming the new owner of Collus PowerStream Corp.
The Corporation of the Town of Collingwood would first purchase the shares of Collingwood PowerStream Utility Services Corp., the holding company of Collus PowerStream Corp., currently owned by Alectra Utilities Corporation for $13.1 million. EPCOR Collingwood Distribution Corp. would then purchase all of the shares of Collingwood PowerStream Utility Services Corp. from the Corporation of the Town of Collingwood for $25 million, and assume the funding of Collus PowerStream Corp.’s existing debt. According to the application, ratepayers will not pay the transaction costs or any of the premium paid as part of the purchase price by EPCOR Collingwood Distribution Corp.
EPCOR Collingwood Distribution Corp. has also requested approval of a one percent reduction in Collus PowerStream Corp.’s 2017 electricity distribution rates for residential customers, to be in effect for five years from the completion of the transactions.
The Ontario Energy Board will hold a combined public hearing to consider the applications filed by each of the Corporation of the Town of Collingwood and EPCOR Collingwood Distribution Corp.