Toronto Hydro customers should be following the story that the utility's board is considering stopping the City of Toronto's $60M dividend. The City Council took notice of the intention because the loss of that money is going to mean property taxes will have to make up the difference. There is concern the utility might be partially privatized soon.
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Hydro’s argument that it needs to divert the dividend to urgent electricity grid work comes as Hydro chief executive Anthony Haines is poised to announce, sources close to Hydro say, hefty third-quarter profits thanks to rate hikes approved by the Ontario Energy Board last year to pay for, among other things, grid upgrades.The OEB granted Hydro $2.25 billion of its $2.5 billion request over five years for capital spending.
The Star revealed in January that advisers and senior staff to Mayor John Tory, as well as Hydro officials, were quietly preparing for a possible partial privatization of the electricity utility.
The Toronto Hydro board meeting is on November 23. Call hydro and find out what that means for your bill.Quote:
One argument against selling part of Hydro is it would reduce dividends to the city that totalled $241.7 million over the past five years. Scrapping the cash payment could potentially remove that obstacle.
But some observers speculate the board is sending a message that if council blocks privatization that would inject new capital into the electricity distributor, all its budget-boosting dividends will be diverted to grid upgrades.
https://www.thestar.com/news/gta/201...t-to-city.html