Hydro One will be acquiring the assets of Chapleau Hydro in a $2.3-million transaction.
On Nov. 7, Hydro One Networks announced the signing of a definitive agreement to acquire the distribution assets that serves 1,200 customers in the Township of Chapleau. Chapleau Hydro has been owned by the municipality.
According to a Hydro One news release, staffing shortages at Chapleau Hydro earlier this year prompted the Ontario Energy Board (OEB) to issue an interim licence to Hydro One to operate the distribution system of Chapleau Hydro for six months while the township considered its options to sell the distribution assets.
The acquisition is conditional upon approval by the OEB. Hydro One intends to file an application with the OEB by the end of this year for approval to finalize the acquisition.
Proceeds from the sale of Chapleau Hydro are expected to be invested in township infrastructure, such as the water plant, fire services and airport.
In a statement, Chapleau Mayor Ryan Bignucolo expects customers in the township will see improvements to service. There are no current changes to electricity service for Chapleau Hydro customers, the release said.
"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," he said.
Hydro One’s Chief Financial Officer Chris Lopez said this arrangement will bring safe and reliable power to the community.
