Ontario Energy Board Approves Ontario Hydro Networks

TORONTO, ON - - The Ontario Energy Board (OEB) has approved the sale by the Township of Artemesia of its local electric utility to Ontario Hydro Networks Company (OHNC), a wholly-owned subsidiary of Ontario Hydro Services Company (OHSC). This is the first acquisition of a municipal utility by OHSC under Bill 35 -- the Ontario governmentÂ’s Energy Competition Act -- to be approved by the OEB.

OHNC and Artemesia Township signed an agreement of purchase and sale at the end of June 1999. The Hydro-Electric Commission for the Township of Artemesia serves approximately 500 customers in Artemesia Township (which includes the former villages of Flesherton and Priceville).

"WeÂ’re very happy the sale has been approved and we can now complete the transfer of customers and facilities to OHSC," explained Jim Harrold, Reeve of Artemesia Township. OHNC has been providing service and power outage response for Artemesia Hydro customers since July 1, 1999. On January 1, 2000, Artemesia Township contracted with OHNC to provide a full utility management service, including customer service, billing and inquiries, until the OEB granted approval for the transaction.

"Merging local utility assets into OHNC will improve efficiency and eliminate unnecessary duplication in local electricity distribution," said Eleanor Clitheroe, OHSC President & Chief Executive Officer. "We have made every effort in close co-operation with Artemesia Hydro to make this transition smooth and easy for customers. With our extensive distribution network, highly-skilled provincial work force and history of service to the people of Ontario, we are a major player in the provinceÂ’s electricity market and are in the best position to drive efficiencies in the distribution sector through consolidation of local distribution companies."

Under the agreement and as approved by the OEB, until open access there will be no electricity rate impact for former Artemesia Hydro customers when they transfer to OHNC.

OHNC has signed agreements or letters-of-intent with about 20 municipalities to acquire their electric utilities, and is negotiating with many others across the province.

Ontario Hydro Services Company Inc. is a holding company operating through its subsidiaries involved in electricity transmission and distribution, telecom and energy services. Through its subsidiaries, it owns and operates Ontario's high voltage transmission system transporting electricity to large industrial customers and municipal utilities, owns and operates low voltage distribution facilities serving about 930,000 retail customers and smaller municipal utilities in the province and operates a province-wide telecom system.