In a prepared statement Monday night, Wellington North council’s finance committee chairman Ross Chaulk was adamant that no decision has been made about the status of Wellington North Power.
He said he was making the statement in order to clear the air about what is happening with the local utility.
“We have had indications of interest from three utility companies regarding the possible purchase of Wellington North Power. This has come about because Ontario Regulation 124/99 provides a transfer tax holiday in regards to the 33% transfer tax on a municipal electrical property if it is sold after Oct. 16, 2006 and before Oct. 17, 2008.”
“The finance committee has had a preliminary discussion with Westario Power and is in the process of scheduling preliminary discussions with the other two interested parties.
Chaulk added, “I emphasize that no decision has been made and I am discussing it here tonight in order to keep all taxpayers informed. “In order to keep it simple … and ignoring complexities [of the surrounding issue].” Chaulk said
“If WNP were sold for $3-million, the transfer tax savings would be $900,000. If WNP were sold for $6-million, the transfer tax savings would be $1.98-million.
He added, “The decision to sell or not sell (the township’s 97% interest in the company) lies with the council of the Township of Wellington North as [it] is the registered shareholder.”
The remaining 3% is owned by the municipality of Southgate.
He concluded, “We will hold discussions with any interested party as we are bound to fulfill our fiduciary and stewardship duties as elected representatives of this township.”
