THUNDER BAY – Repayment of a long-term debt dating back to 2000 has resulted in an additional $1.4 million for the city’s reserve funds.
City council on Monday night unanimously approved a recommendation from administration to demand repayment of a $1.4 million note payable owed by the Thunder Bay Hydro Corporation to the city, with the funds to be transferred to the stabilization reserve fund.
The debt stems from the incorporation arrangement of the Thunder Bay Hydro Corporation, which established a note payable of nearly $35 million to the city. The portion of the note up for discussion on Monday was attributed to a rental water heater business operated by the utility that was absorbed by the corporation.
Thunder Bay Hydro chief executive officer Robert Mace said there are no issues for the corporation to repay the amount.
“These are funds that are sitting in Thunder Bay Hydro Corporation, so not part of the regulated electricity utility at all,” Mace said.
“This is money that’s sitting at the holding company. The regulated rates of the utility already reflect that we don’t pay on the debt that’s associated with that company. That part of the rate minimization remains intact. It has no impact on rates whatsoever.”
