NOMA Expresses Opposition to the Sale of Hydro One Assets

Press Releases

May 25, 2015 (Thunder Bay, ON) – The Northwestern Ontario Municipal Association (NOMA) wrote to Premier Wynne today asking that the Government of Ontario reconsider its plan to sell off Hydro One assets.

As announced in the Provincial Budget, the Government of Ontario will begin selling up to 60% of the value of Hydro One starting this fall. The government projects that it will receive $9 billion as a result of the sale and that $5 billion will go towards reducing outstanding debt and $4 billion will be allocated towards transit, transportation and other priority infrastructure projects across the province.

The NOMA board passed a resolution in opposition to the sale on May 13, 2015. Since that time, the majority of NOMA member municipalities have also passed resolutions in opposition.

“The majority of NOMA member communities are customers of Hydro One and there is grave concern as to how the sale of assets will impact northern communities,” said Mayor David Canfield, President of NOMA.

“Currently these communities pay exorbitant prices to receive hydro. There has been no consultation with these communities which is in our opinion unfair given that we will likely feel the greatest burden as a result of this decision, added Canfield pointing out that “We often do things in our communities that are short-term pain for long-term gain however, we feel that this decision to sell off Hydro One assets is merely short-term gain for long-term pain.”

NOMA pointed out that the $4 billion the province would secure for infrastructure represents less than 13% of the amount the Province has committed to investing in infrastructure over the next 10 years. The Province will still have to borrow money in order to pay for much of the remaining infrastructure costs.

It has been estimated that Hydro One Networks will see a return on investment in the range of 9 to 11% per year. It does not make sense to turn over 60% of its profits of 9% to 11% to the private sector when it could retain 100% ownership of Hydro One Networks, and borrow at less than 3% to pay for necessary infrastructure with a life span of 20 to 40 years.

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For More Information:

Mayor David Canfield President of NOMA (807) 467-2018 – office (807) 468-1115 – cell

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