A Collingwood councillor sent a letter to the Ontario Energy Board (OEB) stating there has been no opportunity for public input into the sale of the town's hydro utility.
Councillor Kevin Lloyd submitted the letter to the OEB on May 10, 2018 as a submission commenting on the application before the OEB to sell the remainder of Collus PowerStream to Edmonton-based EPCOR.
“From the outset, there has been no business rationale to support or oppose the sale — simply the opinion of a lawyer and one consultant,” states Lloyd in his letter after identifying himself as a sitting council member. “Neither addressed the business rationale, only provided opinions and critiques of the previous partnership sale. At no time in the preparation of their reports did they consult with previous council members, Collus Powerstream, PowerStream management, Board of Directors or committee members.”
Lloyd claims in his letter the decision was made “almost entirely behind closed doors,” further stating there were 40 in-camera meetings.
“At no time was the public engaged,” said Lloyd. “The public had no input to this process, and in my opinion that is unacceptable when disposing of a public asset.”
Lloyd asked the OEB to consider the process that led to the application currently under review.
“To be clear, I am not opposed to any public asset sale if there is a comprehensive analysis and the process is open, transparent and encourages public input,” said Lloyd in his letter.
Collingwood CAO, Fareed Amin said he has spoken with Councillor Lloyd about the letter.
“Those are his views,” said Amin. “I don’t think that reflects the views of council. Council has made a decision and he has expressed a view that is different. He has indicated to me his concern is with the process that was adhered to.”
There is a passage in Collingwood council’s code of conduct under the heading Communications and Media Relations stating members must “attempt to accurately and adequately communicate the attitudes and decisions of council … even if they disagree with a majority decision of council … so that there is respect for the decision-making processes.”
“I have opposed this process since it began because it did not engage, consult with, or properly inform the public,” said Lloyd in an email to CollingwoodToday. “While I may respect the decision of council to sell, the process was led by the administration, not council. And it is the process — its lack of openness and transparency — to which I directed my comments. I only asked the OEB to consider that process in its review.”
Amin started in his role as CAO mid-October 2017, and said the sale was “well on its way” when he arrived.
“I think there are always opportunities for the public to provide input from council,” said Amin, using the recent noise control bylaw as an example of town action that received a lot of public input, both written and in person. “From my perspective, I would encourage more civic engagement … I’m a firm believer in an open, transparent and accountable process.”
Lloyd maintains, however, the public was not fully informed about the sale.
“The sale of our public utility, or any public asset, should not be made without fully informing and consulting with the owners — the ratepayers and residents of Collingwood,” said Lloyd. “I believe in my heart that I am doing the duty for which I was elected, and that is to protect the public’s interests.”
The following information is available on the town website on a page dedicated to the hydro sale process.
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In 2012, the town sold 50 per cent of Collus to a company called PowerStream (now Alectra), for $8 million. That sale is currently the subject of a judicial review.
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In 2014, according to the town website, Collingwood indicated it would be undertaking a review of its remaining Collus ownership. This was a public announcement.
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According to the meeting minutes from a July 11, 2016 meeting, council voted in favour of the following motion: “town council considers it prudent and appropriate to actively explore the potential sale of the town’s remaining 50 per cent interest in Collus/PowerStream. It was a recorded vote made following an in-camera session. Both Councillor Lloyd and Mayor Sandra Cooper voted against the motion.
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In September, 2016, the town underwent an RFP process to solicit proposals from interested parties.
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A news release issued in January 6, 2017 and posted on the town’s website indicated PowerStream was not interested in buying the remaining 50 per cent of the town’s shares in Collus. On January 30, another news release announced council was pursuing hydro share sale discussions with EPCOR. On April 25, 2017, council decided it would not be including the water and wastewater portion of the utility in the sale. Two more updates on the hydro share sale discussions came out via news release and a post on the town website on June 1 and August 23.
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On October 23, 2017, council voted to sell its 50 per cent stake in Collus. There was a public presentation at this meeting and the Rogers video footage of the meeting is available here. In November, the town announced PowerStream was also selling its shares and EPCOR would become 100 per cent owner in the sale. There were two public information sessions on November 23, one by EPCOR and another by Mark Rodger, of Borden Ladner Gervais, who explained the process leading up to the sale and the next steps as part of the OEB application.
The OEB application process could take anywhere from three months to a year. The public can participate in the OEB process by sending a letter of comment or becoming an intervenor.
Click here for a list of documents collected for the application process, including Councillor Lloyd’s letter.
