skip to main content
Back to all blog posts

Posted in: Energy Policy | Ontario | Utility Mergers

Sep 28, 2015

Ontario Government Releases Regulations to Support LDC Consolidation

By David Stevens

The Ontario Government recently published draft Regulations that are intended to support and encourage the consolidation of LDCs. This is consistent with the recommendations in the Ed Clark Report and the promises made in the Government's last budget, both of which were discussed in a prior post.

The draft Regulations, which are open for comment until November 2, 2015, address the following items that were promised in the 2015 Ontario budget:

  • Commencing January 1, 2016, there will be a two-year reduction in the transfer tax rate (from 33% to 22%) applicable to transfers of electricity assets for all municipal electricity utilities (MEUs), including transfers to the private sector. There will be a full exemption from the transfer tax for MEUs with fewer than 30,000 customers. Details are found here.
  • Commencing January 1, 2016, there will be a two-year exemption from a requirement to make payments in lieu of taxes (PILs) on deemed capital gains that could arise upon the sale of a MEU. Details are found here and here.

It will be interesting to see whether these planned changes lead to continued consolidations among Ontario's approximately 70 LDCs (a map of which can be found here). In recent weeks, there has been continuing news about potential consolidations of Ontario LDCs, including the planned merger of LDCs in Brampton, Hamilton/St Catharines, Mississauga and Vaughan/Markham/Barrie (detailed here ) and the potential acquisition of Orillia Power Distribution by Hydro One (reported on here ).

Related Blogs

Posted in: Ontario | Ratemaking | Energy Policy

Insights EnergyInsider
Financial Accountability Office Finds Partial Sale of Hydro One Will Cost Ontarians in the Long Term By David Stevens Feb 22, 2018 Ontario completed its final sale of Hydro One shares in December 2017, having generated an estimated $9.2 billion in proceeds by selling 53% of Hydro One. On February 12, 2018, Ontario’s Financial Accountability Office released a report titled “Hydro One: Updated Analysis of the Partial Sale of H...

Posted in: Facilities | Ontario | Energy Policy

Insights EnergyInsider
Ontario Issues Canada’s Largest Green Bond By David Stevens Feb 20, 2018 On February 14, the Ontario government announced that it had successfully issued a $1 billion green bond. This is the fourth green bond issued by the Government of Ontario, following three successful earlier green bond issuances: a $500 million four-year issue in 2014, a $750 million seven-year i...

Posted in: Facilities | Practice & Procedure | Energy Policy | Canada (Federal)

Insights EnergyInsider
Legislation Introduced to Replace the NEB and Project Review Process By David Stevens Feb 14, 2018 On February 8, 2018, the federal government released Bill C-69 titled “An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential amendments to other Acts.” The new legislation is the culmination of the promise...