Hamilton City Council Meeting: HRP Annual General Meeting

Hamilton City Council, acting as the sole shareholder of Hamilton Renewable Power Inc. (HRP), held HRP's annual general meeting to review the corporation's 2025 audited financial statements, 2026 operating budget, facility operations, and transition plans at its Woodward and Glenbrook sites. Council heard that HRP posted a 2025 net operating loss but has continued to provide annual financial benefit to the city, and received updates on lower production, the expiry of an electricity sales contract, a new maintenance agreement, a planned renewable natural gas strategy, and a request for a forgivable loan of up to $1.5 million. Motions were approved unanimously.

Topics Discussed

1. HRP financial results and city benefit

HRP reported a 2025 net operating loss of $522,000, improved from a $939,000 loss in 2024. Total revenues were down about 5% year over year, and the external audit by KPMG required no adjustments or restatements.

On HRP's longer-term value to the city, Duncan said: "Since its inception in 2006, HRP has provided value to the city of Hamilton both financially and environmentally. Over the past 20 plus years, the corporation has provided nearly $4 million in cumulative dividends to the city and an average of $800,000 to $1 million annually in net financial benefit through purchases of methane and offsets to city staffing costs."

2. Facility operations and production declines

HRP said the Woodward facility and Glenbrook facility both saw lower production in 2026. From January to April 2026, Woodward production was down 23% from the same period in 2025, while Glenbrook was down 16% year over year. Total revenue for January to May 2026 was just under $748,000, a drop of about $185,000 from the previous year.

Staff attributed Woodward downtime to chiller issues, electrical outages, control system failures, and oil and coolant leaks. Glenbrook also experienced a complete plant outage from February 9 to 16 after repeated theft of bell communication cables.

3. Contract changes and operating transition

HRP reported that its electricity sales arrangement had ended and that it is now shifting to a different model. Yanni Seatis said: "The previous IESO electricity sales contract expired on July 9, 2026 and HRP is currently working with the city. Electra and other partners on the transition to net metering who have also entered into a new 5-year maintenance agreement with Tormund which includes a major overhaul of the engine at Glennbrook."

A related presentation said a proposed "behind the meter" model would allow electricity from the Woodward facility to be sold directly to the city rather than through IESO.

4. Maintenance agreement and asset strategy

Council heard that HRP has entered into a new 5-year maintenance agreement with Tormund, including a major engine overhaul at Glenbrook. The co-generation engine was removed on August 4 for overhaul.

The meeting also addressed broader strategic changes for both sites. Johnny said "the transition to the 100% uh RNG strategy at Woodward wastewater treatment plant and the windup and and potential transfer of assets and operations of the Glenn Brook Landfill site represent uh pivotal uh strategic decisions uh for the future of HRP."

Council also heard that Glenbrook is operating under an approved windup strategy and that the city is investigating transferring Glenbrook landfill assets and landfill gas management responsibilities from HRP to the City of Hamilton, with tax implications under review by an external consultant.

5. Renewable natural gas strategy and forgivable loan request

The board approved a 100% renewable natural gas (RNG) strategy at the Woodward Wastewater Treatment Plant, with an estimated $35 million net present value over 20 years and an initial capital investment of about $25 million.

HRP said it is seeking shareholder approval for a forgivable loan of up to $1.5 million to manage cash flow during the transition period. According to the presentation, forecast annual losses over the next three years mean HRP will not generate enough cash flow to meet its obligations during the transition of both Glenbrook and Woodward, with the shortage expected to continue through the end of 2028.

Motions

Passed unanimously: - Receipt of the financial presentation - Board Resolutions 1-5, adopted as a package - Adjournment

Attendees

• Councillor Tom Jackson
• Mayor Andrea Horwath
• Councillor Mark Tadeson
• Councillor Esther Pauls
• Councillor Rob Cooper
• Councillor Alex Wilson
• Councillor Jeff Beattie
• Councillor Mike Spadafora
• Councillor Cameron Kroetsch
• Councillor Ted McMeekin
• Councillor Brad Clark
• Councillor Craig Cassar
• Councillor Tammy Hwang
• Councillor Maureen Wilson
• Councillor Matt Francis
• Councillor Nrinder Nann