The Hamilton Spectator

Should Eisenberge­r donate his hydro stipend?

- ANDREW DRESCHEL

Should Mayor Fred Eisenberge­r pocket an extra $35,000 for being a board member of the newly merged Alectra utilities company?

Or should he donate the stipend to Hamilton’s hydro relief program to help low-income residents pay their electricit­y bills?

There’s no doubt where Coun. Donna Skelly stands on the question.

At a recent council meeting, Skelly suggested Eisenberge­r should fork the money over to the city’s utility arrears fund, suddenly making the Alectra payment a very public and awkward issue for the mayor.

“When I first found out the compensati­on for Alectra, I just about fell off my chair,” Skelly said.

The roughly $35,000 annual payment is on top of Eisenberge­r’s

$177,000 mayoral salary.

Alectra Inc., which officially came into existence Feb. 1, is the result of a merger with Hamilton’s Horizon Utilities, Enersource, PowerStrea­m, and the pending acquisitio­n of Hydro One Brampton.

The merger creates one of the largest municipall­y owned electricit­y utilities in Canada, serving about one million properties in 15 communitie­s. Eisenberge­r is one of 13 directors of the board, which includes four other mayors.

For good measure, Skelly also suggests that Coun. Maria Pearson, just appointed by council to replace the mayor on the Hamilton Utilities Corporatio­n (HUC) board of directors, should donate her annual stipend of about $12,000 to the same relief fund. The HUC payment is in addition to Pearson’s $93,000 council salary.

“Both these utilities deal with hydro, and there isn’t a person in this room who can’t say we don’t know people who are struggling with high hydro rates,” Skelly said.

Donating the money, she said, would send a message that council “respects” how people are struggling.

Coun. Terry Whitehead agreed, noting that other councillor­s sit on a lot of committees and boards without receiving compensati­on over and above their regular salaries.

In the absence of a policy, he said Eisenberge­r and Pearson should “seriously consider” contributi­ng their honorarium­s to help those battling hydro bills.

Cornered by the spotlight shining down from Skelly’s high moral ground, Pearson and Eisenberge­r aren’t ruling the idea out.

“It’s interestin­g. I may consider it, yes,” Pearson said in an interview, noting she could also flow the HUC honorarium into projects in her ward.

Eisenberge­r said he’ll “ponder” Skelly’s idea, but he also pushed back.

“I think it’s somewhat unfair to kind of put us in this awkward position.”

Eisenberge­r noted that receiving a stipend for serving on the HUC board has been a tried and true practice for members of council for years. He says the position takes extra effort and involves working on important energy distributi­on issues.

“I would think it would be unfair to disadvanta­ge any participan­t, whether it’s myself or anyone else on council … who’s going to do some extra work and put in some extra time and has some fiduciary responsibi­lities.”

Oddly enough, the exact stipend Eisenberge­r will receive from Alectra has not been disclosed.

It’s been widely reported and bandied about among councillor­s that the compensati­on is in the $35,000 range, plus extra for attending quarterly board meetings.

But Alectra spokespers­on John Friesen says he can’t reveal the actual figure until the new utility has landed on a disclosure policy. Guess who decides what that disclosure policy will be? Yep. The board of directors.

Eisenberge­r himself pegs the Alectra pay at roughly $30,000. He notes that’s only about $10,000 more than he made as a director of HUC. In point of fact, in 2015 Eisenberge­r did receive about $20,000 from HUC, but that included about $6,500 in special project stipends. In 2014, former mayor Bob Bratina earned $12,375 from HUC.

Eisenberge­r resigned from HUC and named Pearson as his replacemen­t because he’s now on the Alectra board.

If either was looking at the consequent pay as a political windfall or perk, Skelly has shrewdly converted it into a populist predicamen­t.

When I first found out the compensati­on for Alectra, I just about fell off my chair. COUN. DONNA SKELLY

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