"We believe Council has made a thoughtful, forward-looking decision following a thorough and transparent review process," said EPCOR President & CEO Stuart Lee. "As confirmed by an independent assessment, this transfer will result in clear benefits to the City and its citizens."
EPCOR is 100% owned by the City of Edmonton. Following the transfer, City Council will continue to regulate Drainage customer rates and be engaged in the utility's long-term planning.
Once the transfer is complete, EPCOR will oversee the City's entire water utility cycle, which includes drinking water treatment, water distribution, wastewater treatment and now, wastewater and stormwater collection.
EPCOR anticipates that finalization of the terms of the Drainage transfer, including completion of a franchise agreement, and the transfer of the assets is expected to occur on September 1, 2017. In connection with the transfer, EPCOR will become responsible for future capital costs and assume responsibility for approximately $600 million to $650 million in current drainage-related City debt.
"Our focus will now be on the smooth transition of Drainage operations to EPCOR. We look forward to welcoming Drainage employees and ensuring customers continue to receive excellent service," said Lee.
Forward Looking Information
Certain statements and other information included in this media release constitute "forward-looking information", "financial outlook" or "forward-looking statements" (collectively, "FLS"), including, but not limited to, statements regarding anticipated completion and timing of the transfer of the Drainage assets and related terms including the assumption of debt. The purpose of this information is only to provide readers with an indication of the expected impact of the proposed transaction on EPCOR's future financial results and this information may not be appropriate for other purposes. These statements speak only as of the date of this media release and EPCOR does not undertake any obligation to publicly update or revise any FLS. Any FLS contained herein are expressly qualified by this cautionary statement.