Call for referendum on hydro merger renewed

By Joel Wittnebel/The Oshawa Express

The decision to merge the Oshawa Power and Utilities Corporation with two other organizations should not be left up to council but given to the people of Oshawa, say Unifor Local 222 retirees.

At the most recent meeting of city council, an official letter from the Unifor Local 222 Retirees chapter detailed the group’s strong objection to the merger.

“The Retirees Chapter…is writing to voice in the strongest way we possibly can our opposition to any ‘merger’ or sale of the Oshawa Public Utilities,” the letter reads.

In April, it was announced publicly that the OPUC was exploring the possibilities of merging operations with the Whitby Hydro Electric Company and Veridian, the company responsible for power in Ajax, Uxbridge, Bowmanville, Pickering, Newcastle and Orono.

Since that time, the three organizations have signed a memorandum of understanding to explore the potential benefits and challenges involved with merging the three companies.

Almost immediately following the announcement, activists, including the Public Power Coalition, began to raise concerns that the merger was only a cover for a sale.

In their letter to council, the Local 222 retirees state their worries that the merger of the OPUC is a “step towards” an even larger merger with Hydro One, something they are “extremely concerned” would lead to increased hydro costs.

“We ask that both Councils not consider any further action in this matter unless there is express authorization by the residents of both communities,” the letter states.

While no action was taken on the letter by councillors, they received another piece of infomation in that same meeting from the OPUC in the form of quarterly financial reports from the utility, which had been missing until this point.

As part of the shareholder agreement between the city and the OPUC, these quarterly reports are meant to be shared with the city manager, and then passed on to council.

City manager Jag Sharma previously told The Oshawa Express that the omission had been an “oversight” due to the turnover in his position.

And while the first quarter of 2016 is still missing due to a “technical challenge at the OPUC,” according to a city document, the second quarter shows healthy financials for the utility with a net revenue of over $13 million in 2016 as of June 30.

Merger discussions will be heating up in the coming months as the OPUC is expected to present to council with the findings of their initial investigations and potential options by the end of 2016.