Shares of Toronto Hydro could be publicly traded if a proposal before the Toronto city council executive committee is adopted.
A report by the city’s chief financial officer and deputy city manager recommends that the city sell up to 10 percent of Toronto Hydro Corporation along with other real estate and business enterprise assets to offset spending and debt in the city’s budget.
The proposal also recommends the city sell all of its interests in Enwave Corporation, which provides heating and cooling within the downtown district of Toronto.
According to the report, selling the proposed assets would allow the city to offset its debt by some $600 million and save roughly $65 million annually in interest over 10 years. The loss in revenue is estimated at $10 million annually.
In addition to reducing debt, the report says the proposal has the potential of preventing debt levels from rising and keeping the city’s debt service ratios below the 15 percent threshold.
The executive committee will discuss the proposal next week.
