City exploring Hydro One’s investment proposal

For immediate release (Sept. 22, 2015) – The City of Orillia is entering into negotiations with Hydro One that could result in a unique, state-of-the-art Advanced Technology Hub located on a large portion of the Horne Business Park in West Orillia. 

As part of the potential deal, Hydro One would construct a number of facilities that may create a significant number of highly-skilled, knowledge-based jobs, and would upgrade telecommunications within the City of Orillia which could result in $200 to $300-million in near-term economic impact. As part of the discussions, Hydro One is negotiating the purchase of Orillia Power Distribution Corporation (OPDC), a subsidiary of the Orillia Power Corporation (OPC). 

The Orillia Power Generation Corporation (OPGC), whose business includes three hydroelectric generating stations, will not be affected and will continue to be owned by the City. 

The City of Orillia is the sole shareholder of OPC, which owns OPDC and OPGC. OPDC is responsible for the installation and maintenance of the power distribution lines running to homes and businesses in the City of Orillia and for customer billing of electricity. 

“This extraordinary opportunity presented itself as an unsolicited offer by Hydro One,” said Mayor Steve Clarke. “The City and OPC would not have even considered an offer from Hydro One if it weren’t for the significant, long-term economic development opportunities it presents. Fostering economic development in Orillia is one of Council’s top priorities. We will examine this opportunity in greater detail and look to negotiate a deal that is in the best interest of Orillia residents, OPC employees, and OPDC customers.”

The new Hydro One facilities would be an industry-leading hub in North America. It would house technology for network monitoring and for coordinating emergency response with multiple organizations across the continent. In addition, Hydro One may consolidate some operations and logistics, as well as telecom management facilities within this innovative hub. 

Over the coming months, the City of Orillia will be exploring and discussing the unsolicited offer put forward by Hydro One, while Hydro One also carries out its own due diligence.

“It should be stressed that no deal has been made at this time,” said Mayor Clarke. “As we enter into negotiations, we will push Hydro One to bring forward the best possible deal for the people of Orillia. We will work towards a deal that protects OPDC jobs and includes rate stability for OPDC customers.”

“Members of the OPC Board of Directors recognize the significant community investment Hydro One is looking to make in Orillia and hence understand the interest of the City entering into discussions with Hydro One,” said Greg Gee, Chair of the OPC Board. "Our Board recognizes that Hydro One distributes electricity to many neighbouring communities and is an experienced electricity distributor. We believe that if the right deal is negotiated with Hydro One, the interests of our employees and customers can be protected and the City will be able to move forward with a very significant economic opportunity." 

Hydro One is one of the largest electricity transmission and distribution systems in Ontario and is constantly replacing and refurbishing aging infrastructure to ensure the safe and reliable supply of electricity for its customers.  

It is anticipated that Hydro One will present a final proposal to Council for consideration early in the New Year. 

A website will be available by end of day on Sept. 22 with more information. Visit http://orillia.ca/techhub. 

The City of Orillia is a city of 31,000 people in the heart of Ontario’s Lake Country on the shores of Lake Couchiching and Lake Simcoe. Visit our website at orillia.ca.

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Mayor Steve Clarke
City of Orillia
705-325-2447
mayor@orillia.ca
 
Greg Gee
Chair, Board of Directors
Orillia Power Corporation
705-326-2495 ext.224
 
Jennifer Ruff
Manager of Communications
705-325-8929
705-238-9209 (cell)
jruff@orillia.ca