Ontario lawyers battle CUPE over Hydro One

Union seeks to halt the sale of more shares, though final block hit the market Tuesday

In a case of curious timing, Ontario government lawyers head to court June12 to seek dismissal of a Canadian Union of Public Employees (CUPE) lawsuit aimed at halting the sale of more Hydro One shares.

But the date will come a month after the final block of Hydro One shares hit the market Tuesday, raising an estimated $2.8 billion.

Energy Minister Glenn Thibeault defended the release of 120 million more shares at $23.25, saying the government has long telegraphed its plan to sell up to 60 per cent of Hydro One to finance $9 billion in infrastructure development, including transit projects and debt reduction.

“I don’t think today’s sale was a surprise. We’ve been publicly clear about our commitment to broaden the ownership,” Thibeault said. Hydro One shares closed at $23.13 on the stock exchange, down 90 cents or 3.75 per cent from Monday on trading of 5.4 million shares.

NDP Leader Andrea Horwath said the government’s decision to sell off another 20 per cent stake in Hydro One was a sign of “arrogance.”

“With a year to go, (Premier Kathleen Wynne) pokes the people of Ontario in the eye on her way out the door by selling off another batch of shares of Hydro One,” said Horwath, referring to the next provincial election on June 7, 2018.

Thibeault said the CUPE lawsuit is “without merit,” which government lawyers expanded upon in a 56-page filing to have the Ontario Superior Court of Justice dismiss the challenge as “frivolous and vexatious.”

“The broadening of ownership of Hydro One is explicitly authorized by statute and is thereby the clear policy choice of the Legislature,” the government’s factum states.

CUPE filed the malfeasance suit in early December against Wynne and two cabinet ministers, calling Hydro One a “vital asset” the Liberals have “no mandate” to sell.

Horwath said her promise to buy back Hydro One shares over eight years if the NDP is elected could take longer now.

Thibeault said the government may raise slightly more than the projected $9 billion depending on results of an “over-allotment option” of 12 million additional shares.