City to hire consultant for London Hydro asset review

Weeks after a possible merger involving London Hydro fell through, the public utility will once again be on the agenda at London City Hall.

City staff are recommending London hire a consultant to assist with an asset review of London Hydro. They say a consultant would provide extensive analysis of the financial, legal, social and environmental considerations regarding a potential sale, merger, or amalgamation of the electric utility.

A report sent to the Strategic Priorities and Policy Committee on Monday said staff have received correspondence from several interested parties about the review process as a result of efforts from a member of council, who was not identified.

The cost associated with the advice is estimated to be upwards of $30,000. Following the analysis, City staff would report back to committee and full council in October.

“It might sound like a lot, but realize this is a $300 million asset, and so that bit of intelligence can make a huge difference in how London does moving forward,” said Ward 1 Councillor Michael van Holst.

“There’s times when you do need an expert to do something for you that’s very specific and requires their knowledge base. There’s no way we could train somebody to do that and there’s nobody here that we would want just guessing.”

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Councillor van Holst predicts there will not be a London Hydro in the future, but rather a regional utility that he hopes London would be the centre of.

“I think it’s a really good idea to keep an open mind and see what’s there, because I have colleagues who said no way that would sell that, I said that in my campaign, but that was also based on not as intimate an understanding what the regulated environment is like for us,” said van Holst.

London Hydro is the 7th largest utility in the province and has given a $10 million dividend to city council the last two years.