4 a.m., Dec. 23)
City fails to reach deal to acquire Hydro One customers
By Fred Sherwin
to bring more than 45,000 Hydro One customers under the
jurisdiction of Hydro Ottawa have ended in failure.
an interview with CTV Ottawa on Wednesday, Ottawa Mayor
Jim Watson said that the two sides were unable to reach
an agreement after six months of negotiations.
discussions reached an impasse over the price Hydro One
was asking for the 45,000 customers.
provincial utility derives a substantial amount of revenue
from suburban customers in Ottawa, the Greater Toronto
Area (GTA) and Hamilton-Wentworth. Losing those customers
would severely devalue the utility. As such, Hydro One
placed a price tag on those customers that Hydro Ottawa
wasn't willing to pay.
would have been too expensive for us to take those customers
in, and it would have been too expensive for Hydro One
to give up those customers, which are good customers,
so I'm disappointed," Watson said.
issue may have had less to do with cost, and more to do
with how Hydro Ottawa would have paid for it. The were
two potential options. The first would have seen the cost
shared by all Hydro Ottawa customers. The second, more
likely option, would have seen the cost born by the former
Hydro One customers themselves.
the end, the cost was too high. The actual asking price
cannot be made public due to a non-disclosure agreement
between the two utilities, however, Hydro Ottawa CEO Bryce
Conrad admitted in a letter to council that Hydro One's
asking price was both "valid and defensible".
the end, residential Hydro One customers in Ottawa will
continue to pay about $115 a year more than there Hydro
story was made possible thanks to their generous support
of our local business partners.)
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