Item PH26658 - Council votes to sell Electircal Utility to Barrie

Municipality :
Community : Bradford West Gwillimbury
Lot :
Concession :
Description : After receiving a report and recommendation of its Bill 35 Steering Committee, behind closed doors, Bradford West Gwillimbury Council has decided to sell its electrical utility. Under Bill 35, the Province's Energy Competition Act, all Municipal Electrical Utilities are required to incorporate as Local Distribution Companies, by November 7th, 2000. The LDCs would have to establish separate affiliate companies to deal with retail sales of electricity, or to carry on other activities currently handled by local Public Utilites Commissions. The Town had a number of options, under the legislation - to incorporate and continue to own the LDC, to amalgamate with other area distribution companies hoping for economies of scale, or to sell. After looking at the bottom line costs of maintaining and upgrading the infrastructure, including the complex billing and collection required in an open market, Council decided to bail out of the electrical business. In a recorded vote, Councillors voted unanimously to sell the "wires" - the Bradford distribution network - to the Barrie Public Utilities Commission, for approximately $10 million. Under the terms of the agreement, all current Utility staff will be hired on by the new company and a Bradford office will be maintained, for a minimum of 5 years. The Town has also received assurances regarding future rates. The decision to sell means the end of the Town's Public Utility Commission, which was established in 1918. The Commission will be dissolved on the same date as the Transfer of electrical services to the Hydro Successor.