By Claude & Parth on 2026-04-08, City: Hamilton, View Transcript
Hamilton Utilities Corporation heard a presentation on Alectra Utilities’ rate rebasing application to the Ontario Energy Board (OEB), its first in 10 years. Alectra is seeking approval for a $3.1 billion capital plan for 2027–2031 to replace aging infrastructure, add capacity for growth, and improve resiliency. For Hamilton, Alectra said the proposal would increase the average residential bill by $2.33 per month (1.7%) starting Jan. 1, 2027, with an OEB decision expected in fall 2026. Alectra also told the board it faces an equity requirement of about $1 billion from 2027–2031 to maintain a 60/40 capital structure, and is looking at other equity sources if municipalities cannot provide it.
RATE REBASING AND INFRASTRUCTURE INVESTMENT: Alectra outlined a proposed $3.1 billion capital program across its service area from 2027–2031. One presenter said, “Our current capital spend average net capital is about $350 million a year. And that number will rise to almost $800 million a year by 2031,” adding the plan totals “$3.1 billion of capital over that period across our entire service area.” Alectra said the rebasing application would set rates for a five-year period through 2031, and that the average Hamilton residential customer would see a $2.33 monthly increase (1.7%) effective Jan. 1, 2027.
UNPRECEDENTED ELECTRICITY DEMAND GROWTH: Alectra linked the spending plan to electrification and load growth. Brian Bentz told the meeting, “We’ve underinvested compared to our peer group,” and said the utility is facing “these forces… of electrification data center loads EVs organic growth,” requiring “sufficient capacity to support that growth within the communities but also rebuild our system.” Alectra also described investments aimed at making the grid “more resilient and better able to withstand extreme weather events.”
CRITICAL FINANCING CHALLENGE: Alectra said it needs new equity to keep its capital structure at 60% debt and 40% equity while funding the proposed buildout. One presenter said, “The equity required for Electra over the period 2027 to 2031 is about $1 billion of new equity to maintain that 6040 capital structure,” and asked, “If the municipality cannot provide that, are there other sources of equity capital that will maintain our governance model, community support, our rates, reliability, but still be able to fund?” The same presentation warned that without that equity, taking on more debt could push leverage above 60% and trigger a ratings downgrade: “your cost of capital, your cost of debt will increase.”
HAMILTON INFRASTRUCTURE PROJECTS: Alectra said it plans to invest “almost $700 million” in Hamilton over a five-year period “to renew and modernize the electrical infrastructure… to also support system capacity and development in the community.” The presentation referenced major local projects and growth-related connections discussed at the meeting, including work tied to the Hamilton LRT and the Highway 5 and 6 interchange, as well as large industrial loads.
MERGER STRATEGY, RELIABILITY, AND COST SAVINGS: Alectra pointed to reliability gains since consolidation, with Brian Bentz saying, “We’ve seen significant improvement since the merger… in our reliability indices.” On costs, the presentation said Alectra filed evidence at the OEB showing “$47 million of real cost reductions, not cost avoidance occurred.” Alectra also argued its distribution charges are comparatively low, stating: “Our rates are in the lower quartile… we’re about $52 a month for an average residential customer… the Hydro One rate is $62 a month… So $10 a month, $120 a year lower rate for a consumer.”
Passed:
- Motion to receive presentation (Item 6.1) — moved by Councillor Wang and Councillor Cooper; approved unanimously by hand vote
- Shareholder resolutions for corporation board appointment (Item 8.1) — approved unanimously 13–0 by electronic vote, including reappointing Sean Donnelly to an electoral board position. Councillor Wang said, “I’m really thankful for Sean to put his name in again to be representing us at the elector board.”
Presenters:
- Julia Camila (HUC Chair)
- Jeff Cowan (HUC CEO)
- Brian Bentz (Alectra representative)