Four years - almost exactly - after the city started negotiations with Hydro One on a massive deal that featured the sale of Orillia Power’s distribution company, it appears the provincial utility will be making a significant investment in Orillia.
A brief media advisory issued earlier today noted: “Hydro One is making a multi-million dollar investment in Orillia which will ensure the safe, reliable delivery of electricity that will power Ontario’s economy for many years to come.”
The announcement will be made Monday afternoon at Orillia’s Waterfront Centre by Darlene Bradley, Acting Chief Operating Officer, Hydro One, Mayor Steve Clarke and Simcoe North MPP Jill Dunlop.
OrilliaMatters asked the mayor to shed some light on the announcement.
“I can’t say anything,” Clarke said Friday. “Sorry.”
But in light of the one paragraph of information provided by Hydro One, it looks as though the utility may be ready to move forward with its plans at the Horne Business Park in west Orillia.
Hydro One has plans to construct three facilities at the park: a back-up Ontario Grid Control Centre/Integrated System Operation Centre (ISOC), a provincial warehouse and a regional operations centre.
Those ambitious plans, essentially, were put on hold when, on April 12, 2018, the Ontario Energy Board (OEB) quashed the potential pact because of concerns about future electricity rates for local residents multiple years after approval of the deal.
The city did not agree and, after working with Hydro One, re-filed its submission to the OEB. The hope is the provincial regulator will make its decision soon.
The original pact, consummated in August of 2016, included the purchase of the Orillia Power Distribution Corporation for $26.4 million. As part of the deal, Hydro One agreed to assume almost $15 million of Orillia Power’s debt.
The deal assured distribution charges will be reduced by 1 per cent and frozen for five years. (The distribution portion of a utility bill accounts for approximately 20 per cent of the overall bill; the remaining portion is set based on market costs at the provincial level).
As part of the agreement, OPDC employees are protected with comparable pay, benefits and pension, along with a one-year location guarantee.
The city retained complete ownership of the generation portion of the company, which accounts for about 78 per cent of the Orillia Power dividend provided to its lone shareholder, the City of Orillia.
All proceeds from the deal were to be directed into an Orillia Legacy Fund.
City officials have said the short-term economic impact of the construction of the buildings and related activity is anticipated to inject $200 to $300 million into the Orillia economy.
“This economic development opportunity will bring new much-needed jobs, create improved infrastructure for other businesses, open up opportunities to entice investment in related businesses and suppliers and has already generated active discussions with large corporations interested in investing/partnering in the City of Orillia,” said Clarke in a news release when the deal was announced.
