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Wasaga Distribution Review​

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Background:

Currently, Wasaga Distribution Inc. (WDI) and its affiliate company Wasaga Resources (WR) are owned by the taxpayers of Wasaga Beach, as represented by Council. These companies are responsible for the delivery of electricity to almost 12,000 households and the installation of infrastructure to deliver electricity. WDI controls approximately 17% of the total electricity bill, with the balance of the bill comprising of the cost of electricity, delivery, regulatory charges and debt retirement; WDI has no control over these factors. 

At the October 25, 2016 Council meeting, Wasaga Distribution Inc. (WDI), with the assistance of Mr. Mark Rodger with Borden Ladner Gervais LLP, made a presentation to Wasaga Beach Town Council on potential options for the future of WDI.  Mr. Rodger was retained to assist WDI for the purpose of determining future options for WDI, and has extensive experience across the province in reviewing LDC’s and providing advice to local municipalities. Mr. Rodger presented three potential options for Council’s consideration: retaining and growing the utility in its current form, merging the utility, and selling the utility. To review Mr. Rodger’s presentation, please see the document titled “Wasaga Distribution Options – October 2016 BLG Presentation"

The review of options for WDI was prompted by the fact that major changes are occurring in the electrical distribution sector in Ontario as demonstrated through the sale or merger of a number of small LDC’s, the “905 mega merger” and the privatization of Hydro One. These changes are in conjunction with the introduction of additional regulations to govern the sector.  At the Association of Municipalities Conference in 2015, municipalities with LDC’s such as Wasaga Beach were encouraged to review the changes taking place within the sector, and explore options to ensure the electrical needs of residents and business owners are met in an affordable manner now and into the future.

The Town will ensure a thorough public consultation with the residents and business owners of Wasaga Beach prior to any decision being made regarding the future of WDI.  To learn more about the public consultation process, please see the document titled “WDI Public Consultation Report November 1, 2016.

As the Town rolls out the public consultation process, this webpage will be updated.  Please ensure to check back often. ​