Hydro Ottawa generates $22M for city coffers

Hydro Ottawa delivered $21.9 million in dividends last year to the City of Ottawa, the utility's sole owner.

Hydro Ottawa'slatest annual report waspresented at city council Wednesday, where it announced the city's dividend. Most of the money will go toward the city's general revenue, but council decided to earmark $1 million to fix potholes and$633,000 for eight energy-efficiency projects, including a pilot to install Canada's first fast-charging station for electric cars.

Jim Durrell, a former mayor of Ottawa andcurrent chair of Hydro Ottawa, said dividends paid to the city do not come from the rates paid by customers.

Instead, the money is from other revenue-generating projects, such as money raised by the Chaudire Falls power plant.

"The dividend does not affect the rates," Durrell said.

Dividend amount in jeopardy?

Coun. Riley Brockington asked whether premier-designate Doug Ford's promise to reduce hydro bills by 12 per cent would put some of Hydro Ottawa's dividend to the city in jeopardy.

The short answer: maybe.

"I don't have a crystal ball," said Hydro OttawaCEO Bryce Conrad. "We are a wholly owned asset of the City of Ottawa and we will do everything in our power to guarantee our financial success."

During the election campaign, Ford and the Progressive Conservatives said they would reduce rates by returning the dividend from the province's Hydro One shares to customers, a move that should not affect the revenues of a local utility like Hydro Ottawa.

The PCs also said they would move the cost of energy-conservation programs off of hydro bills and to the tax base. As well, conservatives said they will place a moratorium on new green-energy contracts and try to renegotiate existing ones.

These last two measures could reduce the revenues received by Hydro Ottawa, which could also reduce the dividend the utility would be able to pay to the city.