The proposal would guarantee lower electricity distribution rates, and lock in rate certainty, subject to Ontario Energy Board approval, for ten years.
Under the Hydro One proposal distribution rates will fall by 1% for the next five years, and then future changes would be aligned with inflation. This means Peterborough will have a decade of distribution rate stability.
If we do nothing, PDI’s distribution rates are expected to increase by as much as 17.1% over the next five years and as much as 28.8% 10 years from now.
** All based on a 800Kwh residential customer. Utilizing annual rate increases of 1.5% in non Cost of Service Years. Cost assumptions included in PDI’s current projection
The same local utility workers who service Peterborough today, will continue to do the same jobs under Ontario Hydro should the deal be approved. Should the deal be approved, Peterborough can expect the same levels of customer service it enjoys today.
Hydro One has promised to go one step further and will provide a money-back customer service guarantee. Customers will receive a $50 Hydro One account credit for things like the company missing a scheduled appointment, or failing to return a phone call within one business day.
Ontario hydro is offering approximately $105 million to buy Peterborough Distribution Inc. After paying off PDI’s debt, taxes and other costs related to the sale, it will mean between $50‐$55 million for the City.
The money from the sale of PDI has the potential to be a game changer in addressing the City’s infrastructure deficit by being reinvested to grow the City’s annual dividend. The dividend supports many of the programs and services Peterborough area residents depend on.
- Reinvesting money from the sale would allow the City to protect and grow the annual dividend it gets from City of Peterborough Holdings Inc. For example, reinvesting this money would allow the City to earn as much as $3 million to support City programs and services.
- This deal will benefit the City and taxpayers by maximizing the value of PDI, and avoiding the risks of holding on to an asset that could decline in value.
Should the deal be accepted by Peterborough City Council, Hydro One will create 30 new jobs in Peterborough.
This would be in addition to the 70 Hydro One jobs already located in the City.
Hydro One will also locate a new regional Operations Centre and Fleet Maintenance Garage in Peterborough. This new development will bring with it economic development activity of between $100-$150 million over the next five years, and generate additional municipal tax revenue of approximately $100,000 every year.
All PDI staff will be offered employment with 12-month service and location guarantees as well as recognition of past service for seniority purposes. As well, becoming part of a larger organization will give PDI employees the chance to pursue opportunities across the province, if they choose to do so.