CHAPLEAU, ON, Nov. 7, 2023 /CNW/ - Hydro One Networks Inc. (Hydro One) and Chapleau Public Utilities Corporation (Chapleau Hydro) announced today that they have signed a definitive agreement for Hydro One to acquire Chapleau Hydro's distribution business to serve electricity customers in the Township of Chapleau. The agreement includes purchasing substantially all of Chapleau Hydro's electricity distribution assets for approximately $2.3 million, subject to adjustments.
"There are tremendous benefits to our new partnership with Hydro One. With local Hydro One presence in the Township, available 24/7, we expect all customers in the Chapleau and surrounding areas will experience service improvements," said Mayor Ryan Bignucolo, Township of Chapleau. "Significant investment and modernization are required within our local electricity system at a rate and pace that is unaffordable for us as a small community. We are excited to welcome Hydro One into our community to help us prepare for the future."
"Hydro One is thrilled to join the Chapleau community and we look forward to being a meaningful and proud community partner," said Chris Lopez, Chief Financial and Regulatory Officer, Hydro One. "We are pleased to work with the Mayor of Chapleau and Chapleau Hydro to provide the reliable and safe power needed now and into the future."
Chapleau Hydro serves approximately 1,200 customers and is owned by the Township of Chapleau. In May 2023, due to staffing shortages at Chapleau Hydro, the Ontario Energy Board (OEB), the province's independent regulator, issued Hydro One an interim license to operate the distribution system of Chapleau Hydro for six months while Chapleau Hydro and its shareholder, the Township of Chapleau, considered the option to sell the distribution business. A request to extend this license has been submitted to the OEB. Proceeds from the sale of Chapleau Hydro are expected to be used to invest in critical core community services including the Township's water plant, fire services and airport.
There are no current changes to electricity service for Chapleau Hydro customers. The acquisition is conditional upon the satisfaction of customary closing conditions and approval by the OEB. Hydro One intends to file an application with the OEB by the end of 2023 for approval of the acquisition.
Hydro One Limited, through its wholly-owned subsidiaries, is Ontario's largest electricity transmission and distribution provider with approximately 1.5 million valued customers, approximately $31.5 billion in assets as at December 31, 2022, and annual revenues in 2022 of approximately $7.8 billion.
Our team of approximately 9,300 skilled and dedicated employees proudly build and maintain a safe and reliable electricity system which is essential to supporting strong and successful communities. In 2022, Hydro One invested approximately $2.1 billion in its transmission and distribution networks, and supported the economy through buying approximately $1.9 billion of goods and services.
We are committed to the communities where we live and work through community investment, sustainability and diversity initiatives. We are designated as a Sustainable Electricity Leader™ by Electricity Canada.
Hydro One Limited's common shares are listed on the TSX and certain of Hydro One Inc.'s medium term notes are listed on the NYSE. Additional information can be accessed at www.hydroone.com, www.sedarplus.com or www.sec.gov.
This press release and the application and investment plan to which it refers 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, are discussed more fully in Hydro One's filings with the securities regulatory authorities in Canada, which are available on SEDAR+ at www.sedarplus.com. Hydro One does not intend, and it disclaims any obligation, to update any forward-looking information, except as required by law.
SOURCE Hydro One Inc.
