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Letter from the Premier of Ontario re: Hydro One Ownership
A scanned copy of the orginal letter is available here.
His Worship Ron Higgins
Rural Mayor's Forum of Eastern Ontario
6648 Road 506
Dear Mayor Higgins:
Thank you for taking the time to send your correspondence regarding Hydro One ownership. I appreciate your sharing your concerns and those of your members with me.
The first phase of Hydro One's initial public offering (IPO) has been completed, generating $1.83 billion that will be dedicated to critical investments in transit and infrastructure throughout Ontario and pay down debt. Our government will continue to hold approximately 84 per cent of the company, and will proceed with future offerings in a careful, staged and prudent manner, while remaining the largest shareholder. With this transaction, our government remains on track to gaining nearly $9 billion; $4 billion of which will be invested in infrastructure and $5 billion to reduce debt. In addition to the gains from share offerings, our government is benefiting from an estimated upfront gain of $2.2 billion, from the deferred tax asset benefit, as well as a special payment of $1 billion. This new money will help fund priority projects such as GO Transit Regional Express Rail, Light Rail Transit projects in communities across Ontario, as well as new natural gas network expansion in rural and northern communities.
It is also worth noting that electricity rates will continue to be set independently by the Ontario Energy Board. Maximizing the value of assets such as Hydro One is part of the government's economic plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs. The four-part plan includes investing in talent and skills, including helping more people get and create the jobs of the future by expanding access to high-quality college and university education. The plan is making the largest investment in public infrastructure in Ontario's history and investing in a low-carbon economy driven by innovative, high-growth, export-oriented businesses. The plan is also helping working Ontarians achieve a more secure retirement.
Thank you again for writing. Please accept my best wishes.