Ontario Energy Board Approves The Sale of Brampton Hydro

BRAMPTON, ON -- - The Ontario Energy Board (OEB) has approved the sale of Brampton Hydro to Hydro One with the deal taking full effect by the end of September. While a stand-alone operating subsidiary of Hydro One will assume operation of the local hydro utility on Aug. 1, the city will not have full use of the money until after a closing/adjustment period.

The OEB approval was issued on Wednesday, July 11. The agreement with Hydro One includes a 75-day closing/adjustment period before the transaction is finalized. City council will then establish a Hydro Stewardship Strategy as part of its 2002 budget process. The stewardship strategy will determine how the money from the sale will be reinvested to provide a legacy for future generations.

"When council approved this deal we were was steadfastly committed to three key principles," said Brampton Mayor Susan Fennell. The OEB decision stated that the Brampton Hydro sale was in the best interest of the consumer, to protect consumers from spiraling electricity costs, protect the jobs of Brampton Hydro employees and make sure service levels and reliability did not suffer.

The OEB decision stated: "The board finds that, based on the evidence, approval of the acquisition by Hydro One of an interest in Brampton Hydro Networks through the acquisition of securities of Brampton Hydro Corporation is in the public interest."

"Overall, the provincial government initiative to restructure the electrical utility industry in Ontario has set the stage for this important transaction for the benefit of the City of Brampton and the public," said Lorne McCool, Chairman of Brampton Hydro and Brampton City Manager.