Plug pulled on Orillia Hydro One deal

Plug pulled on Orillia Hydro One deal CTV Barrie’s Mike Arsalides has reaction from officials in Orillia and Hydro One after their appeal was denied.

The plug has been pulled on a multi-million-dollar deal between Hydro One and Orillia Power Distribution Corporation.

The Ontario Energy Board says it will not hear an appeal on the matter two years after Hydro One signed a $41 million deal.

In a statement on Friday, Hydro One’s Executive Vice President said he “is disappointed by this decision,” which all but kills a deal that was signed in August 2016.

Orillia Mayor Steve Clarke is frustrated by the latest developments saying, “people of Orillia need to know that if present ownership stays as it is, they will be paying more for electric distribution rates in the city than they would under Hydro One ownership.”

Three of Orillia’s nine councillors voted against the deal, including Mason Ainsworth, who says his constituents want to keep Orillia Power in the hands of the people.

“We’ve seen all these horror stories with Hydro One, with rates going through the roof in different places.  As much as they want to spin things and throw out politics, the reality is we’re better with Orillia Power in the future as opposed to Hydro One.”

The deal would have included Hydro One building a technology hub in the city's west end. The total economic spinoff was estimated to be as high as $300 million.

Councillor Ted Emond says blocking this sale may have cost the city a once-in-a-generation opportunity to drive the local economy.

“To develop what they were hoping to develop in Orillia was contingent on the deal.  If that still holds true then no, we won’t see that development happen.”

The mayor is expected to call a special council meeting in the coming weeks to decide how best to move forward.