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Simcoe, ON – Norfolk County Council recently announced its decision to sell its local electricity distribution company, Norfolk Power Distribution Inc. This decision was made unanimously after Council received a detailed financial and economic valuation
on the company and after carefully considering the County’s options for the future of its local electricity utility. Q: If Norfolk Power is in a negative financial and economic valuation position who’d want to buy it? Since Norfolk Power’s mission statements have not been met, wouldn’t it make more sense to investigate the failure before selling?
Speaking on behalf of Norfolk County Council, Mayor Travale said “Council unanimously made this decision after a careful consideration of the challenges facing the company and the County. We want to ensure the long-term sustainability and growth of the County while offering electricity customers served by Norfolk Power reliable and safe services at competitive rates into the future.” Norfolk Power serves areas in and around Simcoe, Port Dover, and Waterford and the communities of Delhi and Port Rowan. All other areas of Norfolk County are served by Hydro One. Outrageous Norfolk County Hydro Bill
Small municipal electricity distribution companies face many complex challenges. These include:
* The need to address increasing levels of regulation; Q: huh? Does this mean – fears over not being able to meet its mandated requirements such as: “
On March 31, 2010, the Minister of Energy and Infrastructure of Ontario, under the guidance of sections 27.1 and 27.2 of the
Ontario Energy Board Act, 1998, directed the Ontario Energy Board (OEB) to establish Conservation and Demand Management (CDM) targets to be met by electricity distributors. Accordingly, on November 12, 2010, the OEB amended the distribution licence of (Norfolk Power Distribution Inc.) to require (Norfolk Power Distribution Inc.), as a condition of its licence, to achieve 15.68GWh of energy savings and 4.25 MW of summer peak demand savings, over the period beginning January 1, 2011 through December 31, 2014. “
* The requirement to offer more services to customers, such as energy efficiency and demand management programs; Q: Wasn’t that one of the ‘selling’ points of smart meters for Norfolk County citizens? Installing and charging for these without having a demand management program in place first was asinine.
* Maintaining competitive rates for customers while ensuring a reliable, safe system; Q: huh?
* Working with a wide range of new renewable energy companies that offer customers access to solar power and other forms of renewable energy; Q: How does working with new companies affect financial valuation?
* Government of Ontario may move toward reducing the number of local utilities. Q:why?
“As we move forward with the sale process, Council will ensure that the County receives the best offer possible for a valuable community asset. This will include commitments to maintaining and improving service to electricity consumers and benefits to our local community and taxpayers,” stated Mayor Travale.
Supplemental- Norfolk Powers Annual 2011 CDM Report