Ontario Premier Kathleen Wynne’s government is leaving the door open to a majority privatization of Hydro One, even as it moves to reassure the public that the province would hold on to significant control of the company in the event of a sale.
The governing Liberals tried to steer this careful course between the two sides in the fractious privatization debate Tuesday, after media reports revealed that Wynne has been quietly crafting a plan to float equity in the Crown corporation to raise billions for new transit construction.
Energy Minister Bob Chiarelli said the province "will continue to have a significant ownership interest" in Hydro One no matter what it does. But he would not say how large that interest would be, and pointedly refused to rule out selling a majority stake to private investors.
Bay Street sources said Queen's Park will fetch less cash for Hydro One’s shares if it does not give majority control to the private sector. They added investors would be wary of putting their money in a company subject to politically motivated decisions.
Government and industry insiders say the province is considering an initial public offering of 10% to 15%, possibly followed by several more sales of equity. The alternative option, first unveiled last fall, is to sell Hydro One’s local distribution networks while keeping transmission in public hands.
Wynne said Tuesday that word of the IPO plan "has gotten into the public realm prematurely" and she has not made a "final decision" on whether to pursue it.
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