Not everyone has beer goggles on.

Although modernizing liquor sales has sucked up a lot of the oxygen around the government’s asset council, some haven’t forgotten about a possible sale of Hydro One's distribution business and Brampton unit.

Hydro One is definitely aware of the discussions about its future.

"We understand that the province is specifically considering the sale of Hydro One Brampton Networks, as well as the distribution business of Hydro One Networks," said the utility’s latest management discussion and analysis, published last week.

What's more, the analysis says the province made a sweeping declaration on Dec. 17, 2014, “regarding the provision of information, personnel and resources,” to the council studying government assets.

"The province could mandate the selling of all or part of our distribution business and this could have a material adverse effect on our company," says the analysis.

The Premier's Advisory Council on Government Assets has been studying how to squeeze more money from Hydro One, Ontario Power Generation, the LCBO and the Beer Store. The blue-ribbon panel, led by former TD Bank president Ed Clark, recommended in November that the province should split Hydro One's distribution and transmission businesses, selling off a majority share of the distribution network, as well as possibly parting with the utility's Brampton unit.

In light of the initial recommendations, which they oppose, the Power Workers’ Union has begun running radio advertisements. The ads started airing this month on 69 radio stations across the province, says PWU spokesperson John Sprackett, highlighting the Hydro One situation.

“The reason we ran the radio ads was to raise public awareness, because there doesn’t seem to have been much,” Sprackett told QP Briefing. “The way it’s been handled to this point, there hasn’t been much public discussions about it.”

The PWU, in a pre-budget submission to Finance Minister Charles Sousa, called the council’s recommendation to split and sell Hydro One businesses “ill conceived.” The union says the move would reduce the government’s revenues, shrink Hydro One’s operational synergies and create “significant transition and transaction” expenditures – driving up electricity costs for consumers.

Sprackett didn’t reveal what the radio ads were costing the union, but did say it remains opposed to the break-up of Hydro One. He explained the PWU is trying to make sure the issue is “on the radar.”

In a speech to the Toronto Region Board of Trade earlier this month, Energy Minister Bob Chiarelli acknowledged the Clark panel recommendations to sell off parts of Hydro One's distribution business. The minister joked that Cabinet had been puzzled why almost all of the attention paid to the council’s work was on liquor, leaving the energy side a “poor cousin.”

But Chiarelli also said the province believes "that market conditions are prime today to maximize value for taxpayers and ratepayers alike,” adding that “provincial ownership of hydroelectric assets is not necessary to protect ratepayer interests.”

Sousa told QP Briefing this week that no decisions have been made regarding Hydro One. Whatever is decided as a next step will likely be in the budget, the finance minister said.

Sousa and the Liberals are trying to eliminate their $12.5 billion deficit, while simultaneously embarking on a 10-year, $130-billion infrastructure spending program. One way the government plans to pay for the infrastructure is by selling off assets, like it did when it recently parted with $1.1 billion in General Motors stock.

Clark himself estimated the sale of the distribution networks and Hydro One Brampton could be worth $2 to $3 billion, with the lost revenue stream offset by squeezing more out of The Beer Store. The Clark panel announced in December it was looking for written submissions on ways to split Hydro One into separate transmission and distribution companies, as well as the sale of some parts of the utility to private investors.

“We’re going to allow the council to put forward its recommendations,” said Sousa. “I’ve made it clear, as the council has, in terms of the Crown corporations that we want to improve in terms of our dividend and our opportunities for re-investment.”

The council has also said that selling some of the province’s interest in Hydro One Brampton and its distribution business could help consolidate the province’s electricity distribution industry.

As far as Sprackett is concerned, however, a Hydro One breakup is the wrong move.

“Splitting up transmission and distribution, it’s just a bad idea.”

Potential sale of Hydro One distribution business and Brampton unit not forgotten

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