Council learns fate of Fortis agreement

PRINCE GEORGE – It was news Council had been waiting for. What would Fortis BC do when the Lease-In, Lease-Out agreement expired? And, on Monday, they learned.

“The lease in-lease out, lease-out agreement, it started in November 2004,” explains Kris Dalio, the City’s Director of Finance. “The City had a referendum about taking on the debt to purchase assets for Fortis. We, in turn, leased it back out to them and at the end of the 17-year window, [Fortis] has the ability to either renew that lease or terminate the lease.”

As Council learned Monday night, Fortis opted for the latter. It is happening at the end of this month. It means Fortis has to buy out the remainder of the unamortized value of the assets. It could mean a $25 to $30 million financial shot in the arm for the City of Prince George.