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ONTARIO HYDRO SERVICES COMPANY GROWING STEADILY THROUGH ACQUISITION OF MUNICIPAL UTILITIES

Ontario Hydro Services Company (OHSC) has reached agreements with the City of Thorold, Town of Deep River, and the Police Village of Russell to acquire their municipal electric utilities. These acquisitions would add over 10,500 customers to OHSC’s customer base throughout the province.

To date OHSC has reached agreements or signed letters-of-intent with about 20 Ontario municipalities, and is negotiating with many others.

All sales must be approved by the Ontario Energy Board (OEB), which recently approved the sale by the Township of Artemesia of its local electric utility to OHSC. This is the first acquisition of a municipal utility under Bill 35 to be approved by the OEB.

"These acquisitions reflect our position as an increasingly major player in the new deregulated Ontario electricity industry," explained Eleanor Clitheroe, OHSC President and Chief Executive Officer. "With our size and experience, we offer a very attractive package of price, reliability and service that others can’t."

Clitheroe said that OHSC’s acquisition program is consistent with the Ontario Government's objective of improving efficiency in the province's electricity distribution sector through rationalization and consolidation.

"Our plan to achieve profitable growth by acquiring municipal electric utilities in Ontario will provide benefits for all parties. Merging these assets into our province-wide system will create synergies, improve efficiency, eliminate duplication and provide real value to municipalities and customers."

There will be no rate increase as a result of these purchases. Where applicable, OHSC plans to absorb staff and set up municipal advisory committees to ensure that municipal officials continue to have input into all electricity issues affecting their communities.

Municipalities selling their utilities to other public utilities before November this year will not be required to pay the 33 per cent provincial transfer tax levied on utility sales.

Ontario Hydro Services Company Inc. is a holding company operating through its subsidiaries involved in electricity transmission and distribution, telecom and energy services. It provides power to almost every Ontario community through either its 29,000 kilometre high voltage transmission system, or 113,400 kilometre low voltage distribution system. OHSC’s wires assets comprise one of North America’s largest electricity delivery systems.

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For more information contact OHSC Media Relations at 1-877-506-7584