Higher costs, lost jobs

Higher costs for water and electricity, loss of jobs, and reduced local control over the Sault PUC.

Sault Ste. Marie PUC Inc. President and CEO Dominic Parrella, in a report to City Council Monday, warned those would be the results for Sault Ste. Marie if the provincial government acts on recommendations to amalgamate Ontario’s existing 73 utility companies down to between eight and 12 regionalized utility companies, with only one utility company servicing all of Northeastern Ontario.

That utility company office would likely be based in Sudbury, Parrella told Council.

The controversial and alarming Drummond Report of February 2012 contained a long list of cost-cutting recommendations for the provincial government.

From there, the Ontario Distribution Sector Review Panel examined the Drummond Report and issued a recommendation in December 2012 that the province follow through with utility amalgamation.

The panel’s report also urges if utilities fail to amalgamate within a six to nine month period, that amalgamations be forced by provincial legislation.

The Sault Ste. Marie Ratepayers Association (SSMRA) and Sault Ste. Marie PUC Inc. management officials met at the Civic Centre last week and both are agreed that the City of Sault Ste. Marie, as PUC Inc.’s sole shareholder, must let the provincial government know of their opposition against utility companies, like the Sault’s PUC, being amalgamated into huge, regionalized utility companies that service entire regions of the province.

In addition, the Association of Municipalities of Ontario (AMO) and the Electricity Distributors Association (EDA) have both indicated their opposition to the Panel's recommendations.

Parrella told Council the six to nine month amalgamation timeline recommended by the Panel is "unrealistic."

He also emphasized in his report that claims of savings through amalgamation of utility companies lack evidence.

If anything, a PUC report states, costs for utility customers across Ontario have actually gone up due to a decline in the number of utilities that occurred from privatization of Ontario Hydro by the former Progressive Conservative provincial government in 2000.

After fielding questions from Council, Parrella said that when he approached Ontario Premier Kathleen Wynne about the amalgamation issue last Friday when the entire provincial cabinet gathered in Sault Ste. Marie, Wynne told him it is the government's position that any utility company amalgamations should be voluntary.

Regardless, Parrella urged Council "it is still very important we make our case to all political parties (at Queen's Park)."

Council agreed unanimously, and resolved to arrange a meeting with Sault Ste. Marie MPP David Orazietti to remind him of City concerns over the amalgamation question.

Correspondence from the City will also be sent to Ontario's Minister of Energy.  

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