-Hydro One plans significant local investment in operations facilities-
TORONTO, Aug. 15, 2016 /PRNewswire/ - Hydro One Limited (TSX: H) ("Hydro One") announced today that it has reached a definitive agreement to acquire 100 percent of Orillia Power Distribution Corporation ("Orillia Power") from the City of Orillia, Ontario. Hydro One will pay the City of Orillia $26.35 million for Orillia Power and assume approximately $14.9 million of debt and regulatory liabilities for a total transaction value of $41.3 million.
"We look forward to welcoming the customers and employees of Orillia Power Distribution to the Hydro One family," said Mayo Schmidt, President and CEO, Hydro One Limited. "This merger of two long time neighbours makes perfect sense and we believe will enable us to realize operational synergies over time that can positively impact electricity prices and quality of service. At the same time, we look forward to partnering with the City of Orillia in investing in facilities that will bring long-term economic value to City of Orillia businesses and residents".
"On behalf of Orillia Council, I would like to welcome Hydro One as a new community partner," said Mayor Steve Clarke. "We look forward to Hydro One providing the same high-quality electricity distribution service as Orillia Power and the construction of new state-of-the-art facilities in Orillia, which in turn will provide significant economic impact, new jobs, and spin-off benefits for our city."
Orillia Power, with a rate base of $28.2 million, serves approximately 14,000 customers and is located in Simcoe County, part of the Huronia region of Central Ontario. Hydro One's territory includes the areas surrounding the City of Orillia. The transaction is the result of extensive discussions between Hydro One and the City of Orillia regarding the sale of the utility and economic development opportunities within the City.
Hydro One and the City of Orillia have also entered into separate facilities and land purchase agreements to construct a backup Ontario grid control centre, a provincial warehouse and a regional operations centre in Orillia's Horne Business Park following the closing of the Orillia Power acquisition and the receipt of Ontario Energy Board and other approvals.
The acquisition and facility investments are conditional upon the satisfaction of customary closing conditions, and approval of the Ontario Energy Board.
About the Company:
Hydro One Limited (TSX: H) Hydro One is Ontario's largest electricity transmission and distribution company headquartered in Toronto, Ontario with approximately $24 billion in assets and 2015 revenues of over $6.5 billion. Hydro One delivers electricity safely and reliably to over 1.3 million customers across the province of Ontario, and to large industrial customers and municipal utilities. Hydro One owns and operates Ontario's approximately 29,000 circuit km high-voltage transmission network and an approximately 123,000 circuit km primary low-voltage local distribution network. For more information about Hydro One, visit www.HydroOne.com.
This press release may contain "forward-looking information" within the meaning of applicable securities laws. Words such as "expect," "anticipate," "intend," "attempt," "may," "plan," "will", "can", "believe," "seek," "estimate," and variations of such words and similar expressions are intended to identify such forward looking information. These statements are not guarantees of future performance or actions and involve assumptions and risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed, implied or forecasted in such forward-looking information. Some of the factors that could cause actual results or outcomes to differ materially from the results expressed, implied or forecasted by such forward-looking information, including some of the assumptions used in making such statements, is discussed more fully in Hydro One Inc.'s filings with the securities regulatory authorities in Canada, and are available on SEDAR at www.sedar.com. Hydro One Inc. does not intend, and it disclaims any obligation, to update any forward-looking information, except as required by law.
SOURCE Hydro One Limited