Riel wants election referendum on PDI sale

Stephenson confirms talks to sell PDI to Hydro One are back on again; deal remains for $105M

Coun. Keith Riel said he would like a city-wide referendum on whether to sell Peterborough Distribution Inc. (PDI), the publicly owned poles and wires that deliver electricity, on the ballot at the municipal election Oct. 22.

Riel said he knew that Mayor Daryl Bennett would rule the motion out of order at the council meeting — and he didn’t bring it up again under new business, when it might’ve been considered.

He said he simply wanted citizens to know how he feels about it — and perhaps get a headline in this newspaper.

The motion came after the president and CEO of Peterborough Utilities Group spoke at council.

John Stephenson said discussions with Hydro One to sell the local utility are back on — and that the price to buy PDI is still firm at $105 million.

Stephenson said that when Hydro One walked away from negotiations to buy PDI in March, he didn’t think a deal was far off.

“I said at the time that the gaps weren’t insurmountable – and I still feel that,” he told council Monday.

Since then, city official met with Hydro One “to really understand what the gaps were – and for them to understand our perspective, and for us to understand their perspectives…. That was a discussion,” Stephenson said.

“I think the parties had a very productive discussion … and there was merit in thinking those two sides could try to bridge those gaps, and come to satisfactory completion” of the deal.

“I am cautiously optimistic those discussions could be fruitful… Hopefully, that helps frame a little bit where we’re at.”

Council then voted to meet with their lawyer at a later time to see whether there’s any way to recoup $1.1 million in expenses the city incurred during more than a year of negotiations with Hydro One.

After Stephenson spoke on Monday, councillors had questions.

Coun. Keith Riel asked whether Hydro One wanted to pay less than the agreed-upon $105 million; he said he heard Hydro One changed its mind and only wanted to pay $85 million.

Riel also asked whether there were PCBs discovered in the transformers, which put off Hydro One.

Regarding the $105 million asking price, Stephenson said there was never a discussion of reducing it.

He also said they’ve been careful to remove PCBs from the transformers.

“To my knowledge, we have no particular issues on our properties,” he said.

Coun. Diane Therrien also asked how it’s wise to continue these “discussions” when the Ontario Energy Board recently

rejected a deal for Hydro One to buy the utility in Orillia.

Her concern was that the city shouldn’t continue to spend staff time and money on a deal that could potentially be turned down by the OEB.

Stephenson said it’s not a good idea to “pre-judge” and that the Orillia decision should be “put in the parking lot” when discussing the local discussions.

“Our application needs to go forward on its own merits, to the OEB,” he said. “The Orillia decision isn’t a decision in tis final state…. To pre-judge it is definitely premature.”

Coun. Henry Clarke asked whether PDI will be a viable company in the future.

Stephenson said no, but it has nothing to do with the infrastructure or the good employees: it’s all about industry change.

Coun. Gary Baldwin asked what happens to the money, if and when a deal comes together.

Stephenson reminded council it’s their money and they can do with it what they wish.

“I think this is a good transaction, if you can get there,” he said. “It’s a sizable premium.”

Yet afterward, Coun. Dean Pappas said he still had concerns that maybe Hydro One offered a lowball sum – around $85 million – to buy PDI.

“I would like to know exactly what the new offer is,” he said.

But Mayor Daryl Bennett said that question’s already been answered.

“The number is still $105 million – that’s very clear,” he said.