Ontario Moving Ahead With Broadening Ownership of Hydro One
Preliminary Prospectus Filed With the Ontario Securities Commission
Ontario is moving ahead with its plan to broaden the ownership of Hydro One, in order to support the single largest investment in transit and transportation infrastructure in the province's history, along with actions to strengthen Hydro One's performance, customer service and system reliability.
In preparation for the Initial Public Offering, a preliminary prospectus has been filed by Hydro One with the Ontario Securities Commission (OSC) and the other Canadian securities commissions. The prospectus, approved by the Province and the company’s Board of Directors, provides a comprehensive overview of Hydro One, including its operations and its outlook.
The 2015 Budget legislation requires that, by law, the Ontario government remain the largest shareholder of the new company at a minimum 40 per cent and that no other shareholder or group of shareholders would be permitted to own more than 10 per cent. As well, Hydro One would continue to have no role in setting electricity rates. Rates will continue to be set by the independent Ontario Energy Board (OEB). The government has also introduced legislation that would, if passed, strengthen the regulatory powers of the OEB to protect ratepayers and investigate complaints.
Hydro One will now move forward to file an Amended & Restated Prospectus, following the OSC review, and will begin to undertake marketing activities and financial advisor consultations to help set a final share price for the Initial Public Offering (IPO), which the government intends to complete in November.
Maximizing the value of Hydro One is part of the government’s economic plan for Ontario. The four-part plan is building Ontario up by investing in people’s talents and skills, making the largest investment in public infrastructure in Ontario's history, creating a dynamic, innovative environment where business thrives and building a secure retirement savings plan.
- The Province anticipates being able to close the Initial Public Offering in the current fiscal year.
- Research shows that every $100 million of public infrastructure investment in Ontario boosts GDP by $114 million, particularly in construction and manufacturing sectors.
- Ontario’s infrastructure investments will support 110,000 jobs per year on average with projects such as roads, bridges, transit systems, schools and hospitals across the province.
“Moving forward with the broadened ownership of Hydro One is a win-win for the public and for Hydro One’s customers. Not only will this plan provide billions for needed infrastructure investments, but we believe it will support improved performance by a company focused on customer service excellence and system reliability.”
“Broadening the ownership and improving the structure of Hydro One will help maximize its value to benefit all Ontarians. The ongoing net gains from repurposing these assets will enable new investment in vital infrastructure projects across the province and, in turn, stimulate the economy, support more jobs and increase Ontario’s competitiveness.”