Peterborough Distribution Inc. has applied for approval to amalgamate with Peterborough Utilities Services Inc.; to transfer its distribution licence and rate order to the amalgamated company (AmalCo); and to then sell the distribution system to 1937680 Ontario Inc. Approval to transfer the AmalCo distribution licence and rate order to 1937680 Ontario Inc. is also requested. Hydro One Inc. is the parent company of 1937680 Ontario Inc.
1937680 Ontario Inc. has applied for approval to operate the distribution system for up to 18 months while the distribution system is integrated with Hydro One Networks Inc.’s system. 1937680 Ontario Inc. has applied for approval to dispose of the distribution system to Hydro One Networks Inc. upon completion of the integration. Approval to transfer the rate order to Hydro One Networks Inc.; to amend Hydro One Networks Inc.’s distribution licence; and to cancel the 1937680 Ontario Inc. licence is also requested.
Hydro One Networks Inc. says that ratepayers will not pay the transaction costs or the premium or up-front integration costs.
The application also asks for approval to:
- Change Peterborough Distribution Inc.’s Specific Services Charges to align with Hydro One Networks Inc.’s charges, at the time of transfer to Hydro One Networks Inc.
- Defer the rebasing of Peterborough Distribution Inc.’s distribution rates for 10 years
- Implement a 1% reduction in Peterborough Distribution Inc.’s base distribution delivery rates for residential, general service and large use customers for the first five years
- Establish an earnings sharing mechanism between years 6 and 10, to share the increased benefits of consolidation
For a full list of the approvals requested, please carefully review the application.