The Ontario Government recently published draft Regulations that
are intended to support and encourage the consolidation of LDCs.
This is consistent with the recommendations in the Ed Clark Report
and the promises made in the Government's last budget, both of
which were discussed in a prior
The draft Regulations, which are open for comment until November
2, 2015, address the following items that were promised in the 2015
Commencing January 1, 2016, there will be a two-year reduction
in the transfer tax rate (from 33% to 22%) applicable to transfers
of electricity assets for all municipal electricity utilities
(MEUs), including transfers to the private sector. There will be a
full exemption from the transfer tax for MEUs with fewer than
30,000 customers. Details are found
Commencing January 1, 2016, there will be a two-year exemption
from a requirement to make payments in lieu of taxes (PILs) on
deemed capital gains that could arise upon the sale of a MEU.
Details are found
It will be interesting to see whether these planned changes lead
to continued consolidations among Ontario's approximately 70
LDCs (a map of which can be found
here). In recent weeks, there has been continuing news about
potential consolidations of Ontario LDCs, including the planned
merger of LDCs in Brampton, Hamilton/St Catharines, Mississauga and
here ) and the potential acquisition of Orillia Power
Distribution by Hydro One (reported on
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Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
In Bank of Montreal v Bumper Development Corporation Ltd, 2016 ABQB 363, the Alberta Court of Queen's Bench enforced the "immediate replacement" provision in the Canadian Association of Petroleum Landmen 2007 Operating Procedure...
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