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ARTICLE · 28 APRIL 2015

Ontario Budget 2015: Building Up LDCs

Gowling WLG
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Until the late 1990s, local electricity distribution was structured as a department within a municipality rather than a stand-alone entity.

CanadaEnergy and Natural Resources

The ongoing LDC merger and consolidation discussion, sparked by the publication of the Ontario Distribution Sector Review Panel Report in December 2012, took a significant step forward earlier this month with the release of the report of the Premier's Advisory Council on Government Assets (the Clark Report). Click here to read our previous analysis of the report. That report recommended changes to the tax regime applicable to local distribution companies (LDCs) to encourage LDC consolidation and private sector participation. On April 23, 2015, Ontario's Minister of Finance tabled the 2015 Ontario Budget which provided more detail on the proposed tax changes.

Background

Until the late 1990s, local electricity distribution was structured as a department within a municipality rather than a stand-alone entity. The electricity sector underwent significant restructuring in the late 1990s, including the passage of the Electricity Act, 1998 (EA). Under that

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