TORONTO — The Ford government is advancing legislation that would bar municipal mayors, councillors and staff from sitting on the boards of Toronto Hydro and dozens of other local power utilities across the province.The changes are contained in Bill 140, the Building Ontario Faster Act, introduced in late October. If passed, they would take effect by Jan. 1, 2027 — before newly elected municipal councillors are sworn in following this year’s municipal elections.Under the proposed rules, municipally owned local distribution companies could no longer appoint mayors, councillors or municipal employees as voting directors. Each municipal shareholder would instead be limited to naming one non-voting, unpaid “participant” who could observe board meetings. The boards themselves would be required to be skills-based and range from seven to 11 independent directors..Energy and Mines Minister Stephen Lecce has framed the move as modernizing governance so utilities can better meet rising electricity demand, which the government says will grow by the equivalent of adding a major city the size of Toronto to the grid every six years.The measures implement recommendations from the government’s Panel for Utility Leadership and Service Excellence (PULSE), which argued that independent boards would give private investors more confidence when utilities seek outside capital for infrastructure.Critics, including municipal officials and opposition members, have described the change as “stealth privatization.” They argue it removes the direct public accountability that comes with elected officials on the boards of companies that are still 100% municipally owned. Toronto Hydro, Alectra, Elexicon and other local utilities would be affected.The government has not said the utilities will be sold. However, the PULSE report and related materials emphasize the need to attract private capital for grid upgrades, and the new rules are designed to make the boards more attractive to outside investors by reducing municipal political influence.Bill 140 has already passed second reading and is before committee.
