CORNWALL – City council has called a special council meeting for Tuesday afternoon to provide its blessing to a proposed Cornwall Electric contract through 2029.
The power utility is in the middle of negotiating a new contract with Hydro Quebec to continue to supply power through 2029 “similar to the terms and conditions of the existing power contracts,” states a city report.
The two existing contracts expire at the end of 2019.
As part of the franchise agreement, Cornwall Electric has to get approval from the city to enter in to a power contract that is longer than two years.
Cornwall Electric is also asking the city to be able to include the one-time cost of negotiating the latest contract (so far it’s about $50,000) into the cost of power this year.
The last time the utility negotiated a contract in 2007-2008, the cost was around $458,000.
Cornwall Electric customers have had power rates that are competitive to Hydro One.
There have been no rate increases in the last three years and future increases through 2019 are projected to be within the rate of inflation.
If the city agrees to the requests of Cornwall Electric, the final bylaw would be passed at the Sept. 12, 2016 council meeting.
The special council meeting is Tuesday at 5 p.m. at city hall.