PowerStream项目 电力消费者收益甚微
PowerStream Merger brings minimum benefits to customers

将三家电力公司合而为一的PowerStream项目在万锦市议会获得通过,该项目旨在帮助用户节省电费开支。但是Bob Mok指出,大部分电力消费者从中收益甚微。
PowerStream project which intends to save money for its customers by bringing three utility companies together under one banner got the go ahead from the Markham city council. But as Bob Mok writes, the project will bring minimum benefits to the majority of customers.
Powerstream(部分属于万锦市府的地方电力分销公司)参与的商业合并交易最终将会“收购” Hydro One Brampton,本文是该系列文章的第二篇。
This is the second in a series of articles on the participation of Powerstream (a local electrical distribution company partially owned by Markham) in a merger deal to “purchase” Hydro One Brampton. 
For the previous article, please go to: http://chinesenewsgroup.com/news/613804
First, I must declare that I was actively engaged in opposing this merger.


On Nov 19, 2015 the City Council of Markham voted 7-6 to proceed with this project despite of the conclusion of City Staff that “The Transaction cannot be recommended by City staff solely on an investment basis”. If synergies can be achieved as planned, then an average savings of $40/year for all customers and $24-30/year for residential utility bills (5-9% of the distribution portion of the bill) after year six of the transaction will be realised. Meaning - a high risk venture with minimal gain potentials.


Markham was the last municipality to vote on this merger and if it had voted “no”, the whole project would have collapsed. On the voting night, undue pressure was brought to bear at the Council chamber with the presence of various Mayors and executives from the merging partners.

There are actually a number of conditions attached to Powerstream’s participation. Among them:


Solar power business will still be a part of Powerstream, but “ringfenced” so that all the dividends and equity growth still go to Powerstream’s original owners, not MergeCo.  


Through the successful sale of 10% of Powerstream shares, achieve the maximum equity contribution of $47.3 Million. 


These 2 issues above are not linked. The equity could even be higher if the City wanted it, but residents would easily see a bigger number and they may complain. Debt is hidden. There are many ways to fund the $47.3 million. The City is trying to reduce the actual cash needed so they decided to work with this figure.


During that meeting, it was revealed for the first time that out of the existing four CEO’s from the merging partners, at least one will be dismissed and two may have to take on different positions. While this cannot be confirmed or denied, the CEO from Powerstream may become the new CEO of the final company temporarily named “MergeCo”.

Powerstream执行长提供的财务数据与万锦市府行政总监Andy Taylor所编制的数据相去甚远。此外,与会者对合并交易带来的直接收益也是说法不一令人困惑,有人说每月电费可因此节省$26元,也有人说是每年电费可节省$26元,更有甚者说每名商业用户每年可节省$2.6万元电费。市政人员从其顾问处获取的确切数据如下:

There were major differences between financial figures supplied by the Powerstream CEO over those of the ones prepared by the City’s CAO Andy Taylor. There was also confusion from the attendees on the direct benefits to their bills. We heard $26 dollars per month, $26 per year, and even $26000 per year for each business user. The facts provided by the City Staff with input from their consultants were as follows:

1) 316,765 residential clients will get $24.56 per year of reduction from their bills.


2) 31,856 business clients using less than 50KW will get back $69.73 per year. It was clarified by the Powerstream CEO that a “typical” restaurant will fall under this category.


3) 4,789 bu$873.54siness clients using between 50KW to 4,999KW will get back “up to” $873.54 per year maximum, many of them will get way less than that maximum amount.

4) 2 “large” users will get $13751.59 per year each.

As we can see, a majority of the users are getting minimal reductions after six years if the synergies of 17% reduction in operations and capital costs are achieved.

安省政府为该项合并交易保驾护航并不出人意料,因为该交易可让省府在Hydro One的IPO(首次公开募股)之外再获得$6.07亿元现金。至少有两名区域议员曾因此与安省内阁厅长会面或交谈,还有一名区域议员则是遭到一位匿名人士的威逼,对方称会让他连任机会不保。

There were involvements from the provincial government in securing the merger that will bring them $607 million outside of the IPO of Hydro One. At least two Regional Councillors met or spoke to a Provincial Minister and one Regional Councillor was “intimidated” by an undisclosed person, threatening him with hurting his chances of re-election next time.


The Merger will now proceed when Markham’s extra conditions are met. It will still have to be approved by the Ontario Energy Board (OEB) next year.

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