Sale of Midland PUC to NT Power finalized

The sale of Midland Power Utility Corp. (MPUC) to Newmarket-Tay Power Distribution Ltd. (NT Power) has been finalized.

The amalgamation of MPUC and NT Power was finalized with the closing of the sale and transfer of service properties to NT Power, according to a news release issued by the town of Midland on Thursday.

Town council voted to sell MPUC back in June 2016. In November 2016, the town began looking for a potential buyer.

The decision to sell was in large part due to the challenge of delivering innovation in a competitive environment, according to the release.

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“The financial capacity to provide research and service innovation within a small utility presents some very real challenges,” the release states.

In April 2017, the town agreed to sell MPUC to NT Power for $22 million.

According to the release, $1.5 million of the sale proceeds will be used for a dividend replacement reserve, to end the town’s reliance on the historical MPUC dividend over the next five years.

The town says $10.5 million of the sale proceeds will be used as a MPUC legacy reserve fund and will be invested with the interest being used to benefit the town.

The remaining $10 million will be used for a community-wide initiatives reserve fund, to be used by council as an internal bank to invest in specific projects deemed by council to be appropriate.

“These investments will provide the financial flexibility to fund key projects and initiatives for years to come,” said Midland mayor Gord McKay. “That, combined with ensuring the long-term stability of our power distribution, is a major step forward for the Town of Midland.”