PDI sale findings to be reported Sept. 6

A consultant hired by city council to advise on whether to sell the city-owned utility is expected to make a public presentation at Market Hall on Sept. 6.

Navigant Consulting Inc. was hired by city council on July 28 to examine the possibility of selling Peterborough Distribution Inc. (PDI) to Hydro One.

The firm is expected to write a report that offers both an overview of the energy sector’s future and advice to council about whether to sell.

Council also hired Miller Thompson Lawyers of Toronto to give them third-party advice. The total bill for both the firms together is expected to be $33,000.

The consultants are expected to present their findings at a regular committee of the whole meeting on Sept. 6 (the day after Labour Day).

The meeting is being moved from City Hall to Market Hall; that’s typically done when a large crowd is expected.

The idea of whether to sell PDI has been controversial. When officials from PDI and Hydro One gave a presentation to council on the merits of selling the utility, in March, the meeting was held at Market Hall – and it was packed with unhappy citizens.

The city’s been negotiating with Hydro One for several months now, although no offer’s been made yet.

On Friday, Coun. Dean Pappas said he received a letter from city clerk John Kennedy stating that the meeting of Sept. 6 will be at Market Hall and that the Navigant findings will be presented.

Pappas has said he doesn’t want to sell PDI. He voted against hiring Navigant in July.

On Friday he said he’ll be surprised if the consultant gives him any analysis he can use.

“I don’t think they’re going to tell me anything I don’t know,” he said.

Roy Brady, an activist who has lobbied to keep PDI in public hands, said he’s surprised Navigant is presenting a report just six weeks after it was hired.

“It didn’t take them too long to produce a report on something complicated – that’s suspicious,” he said.

Brady also said he hopes councillors will ask more questions than they have been asking lately, when the consultants make their presentation.

“This issue is getting ahead of councillors,” he said. At the meeting on July 28, some councillors said they think it’s a good idea to get a third-party opinion.

“It’s a good use of money,” said Coun. Gary Baldwin. “It’s another good piece of information from two reputable companies.”

Coun. Dan McWilliams said at that meeting that any deal to buy PDI would be so big that council should seek all the advice and information it can get.

Hydro One and PDI have said the city would likely net between $40 million and $50 million if the sale goes forward.

Council could then decide to invest that money to yield an annual return of $2 million for the city, which doubles the revenues now generated by PDI.