OPC, What’s The Deal?
By John Swartz
Something is up at Orillia Power Corporation (OPC). Friday afternoon there was a special council meeting to consider an, “Orillia Power Corporation Generation Opportunity.”
Most of the meeting was in closed session and most of the 11 minutes of public meeting was used to read one motion from the closed session, which was basically a permission to OPC to continue to pursue whatever the opportunity is.
“They haven’t necessarily bought anything, it’s an opportunity they are investigating,” said Mayor Steve Clarke after the meeting.
It looks like there is some kind of asset, quite possibly an existing asset like another hydro generating station, a wind farm, or solar plant that is available and may become part of the generating capacity of OPC.
It certainly isn’t a weird twist of the fabric OPC is buying Hydro One.
There are a number of solar farms in the surrounding townships. One company, Canadian Solar, has built a number of solar projects in Canada and the U.S. through its subsidiary, Recurrent Energy, including a 30 hectare project in Oro-Medonte (which appears to have been sold in 2014 to the investment fund BlackRock). The company has sold a number of its solar projects of late and it appears they primarily build then sell completed projects. They currently operate 3 completed solar projects in Waubaushene .
Since the Ontario government in one of its first acts (August 2018 following the last election) was to cancel 758 electricity generating projects, mostly solar, there really is only the trading of ownership of existing projects and not building new ones making up energy sector transactions. So, if any OPC acquisition of solar generation is in the cards, it likely won’t be for a new project, but to take over an existing one.
One of the projects cancelled was OPC’s Bawatik hydro generating project which was about to begin construction. OPC took a $2.3 million hit on their $3.9 million investment. OPC still owns the land near Peterborough and its valued at almost $1.2 million and the province reimbursed OPC $560,000 for the cancelled contract. It does not look like a new hydro generating station is in the immediate future of the OPC
Most hydro generation is owned by Ontario Power Corporation and they have been acquiring, not selling of late. That doesn’t mean a smaller plant owned by others is for sale and has caught OPC’s attention. Clarke and other councillors have said OPC’s generating plants are not for sale.
“Still, the sole shareholder will be the City,” said Clarke.
Whatever a deal is, it doesn’t appear we will be waiting long to find out more.
“My sense if all goes well, you’ll know in the very near future,” said Clarke.
One thing that jumped out of the motion is the use of a new name, GenCo, which appears many times in the text of the motion.. The motion begins, “Whereas Orillia Power Generation Corporation (“GenCo”)…” this may be a signal OPC is changing its operating name.
(Photos by Swartz – SUNonline/Orillia)
