NOTICE OF APPLICATION AND WRITTEN HEARING FOR SALE OF INTEREST OF COLLINGWOOD UTILITIES SERVICES CORPORATION TO POWERSTREAM INC.
On March 9, 2012 the Corporation of the Town of Collingwood (the “Town”), Collingwood Utility Services Corporation (“Holdco”), and PowerStream Inc. (“PowerStream”) a licensed electricity distributor, filed an application under section 86(2)(b) of the Ontario Energy Board Act, 1998 (the “Act”). In the application the Town seeks leave of the Board with respect of the completion of the sale by the Town of 50% of the common shares of Holdco to PowerStream. The Town is the sole owner of Holdco, and Holdco is the owner of COLLUS Power Corp. a licensed electricity distributor. Powerstream, as a generator, has notified the Board of its intent to acquire an interest in a distribution system through the purchase of Holdco, as contemplated by Section 81 of the Act.
The Town is intending to sell a 50% non-controlling interest in Holdco to PowerStream through the sale of common shares of Holdco for cash consideration. The Town submits that the application meets the Board’s “no harm” test and that there will be no increase in rates or degradation of the quality of the service provided to the ratepayers of COLLUS Power Corp. The Town also states that there is no intention to harmonize rates as a result of the proposed transaction. The applicants state COLLUS Power Corp. and PowerStream will continue to operate as individual corporations under their current distribution licences.
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