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City of Brampton Approves Innovative Partnership between Hydro One and City of Brampton for Brampton Hydro

Brampton, ONTARIO, October 31, 2000 - Peter Robertson, Mayor of Brampton, announced today that Council has approved a deal with Hydro One that will see Brampton Hydro become a wholly owned subsidiary of Hydro One. The deal approved by Council last night, is the largest of its kind in Ontario and provides guaranteed job security for Brampton Hydro employees, new jobs, and rate and service stability for hydro consumers.

"The sale of Brampton Hydro to Hydro One represents a fantastic opportunity for this community," said Mayor Robertson. "It ensures continued rate stability for distribution, service reliability and management continuity for electricity consumers in our city."

As part of the agreement to purchase the utility, Hydro One has agreed to pay $260 million to the City of Brampton. The sale of a utility must be registered before November 7 to avoid the 33 per cent provincial transfer tax that will take effect the next day.

The terms of sale include a provision for the creation of a new corporation in Brampton, which will be a subsidiary of Hydro One. This will ensure the jobs, revenue and servicing will remain in the city. As part of this agreement The City of Brampton will retain two seats on the Board and will have a voice in the operation of the new utility. Hydro One has committed that this utility will serve as the flagship for Hydro One's entry into urban markets across North America.

The Hydro One offer was one of six submitted to the City in response to an open request for proposals. The Hydro One proposal was selected because of the advantageous combination of certain revenue, distribution rate protections, and service and employment guarantees.

"We chose the best deal for Brampton: Hydro One gives the City the best long-term and short-term benefits," said Mayor Robertson.

The offers were evaluated by City staff, Borden Ladner Gervais - a leading law firm, and RBC Dominion Securities, one of the countries leading financial advisors. The proposal will now go to the Ontario Energy Board for approval. During the transition, Brampton Hydro operations and service will continue as usual.

Hydro One is one of the 10 largest electricity distribution companies in North America. The size of the company provides cost and management advantages in the areas of hydro procurement, staff training and operations.

"We are very pleased that Brampton Council has supported our proposal," said Eleanor Clitheroe, President and Chief Executive Officer, Hydro One. "Our goal is to make this transaction seamless and transparent for both customers and employees."

"This is an important addition to our company and will increase our ability to provide the most cost-efficient service to the communities we serve," said Clitheroe. "The expertise and knowledge of Brampton Hydro's management and staff will form a key component of Hydro One's strategy and goal to build a strong urban wires business," said Ms. Clitheroe.

Brampton Hydro has approximately 190 employees and 83,000 customers. In 1999 it was the 6th largest of the 253 municipal electrical utilities in Ontario, and had revenues of more than $220 million.

Brampton residents who have questions about this deal may call (905) 874-2030.

About Hydro One
Hydro One Inc., one of the successor organizations to the former Ontario Hydro, is a holding company that operates through its subsidiaries in electricity transmission and distribution, telecom, and energy services businesses. Its largest subsidiary, Hydro One Networks, owns and operates the province wide transmission network and the largest distribution system in Ontario, serving almost one million customers. Hydro One is wholly-owned by the provincial government.

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For more information or to arrange an interview, please contact:

Michael Ras
Hill and Knowlton Canada
Tel: (416) 413-4648/Cell (416) 822-5091

Brian Johnston
City of Brampton
Tel: (905) 874-2005

Terry Young
Hydro One Inc.
Tel: (416) 345-6072/Pager (416) 377-3831