24/11/2007
In the vast landscape of Canadian utilities, Cornwall Electric stands out not just for its enduring presence but also for its fascinating and pioneering history. As an electricity transmission and distribution utility, it has been a cornerstone of Eastern Ontario's infrastructure for well over a century, providing vital power to thousands of homes and businesses. Licensed by the Ontario Energy Board (OEB), Cornwall Electric serves the city of Cornwall, the townships of South Glengarry and South Stormont, and a portion of the Mohawk territory of Akwesasne.
What makes Cornwall Electric truly distinctive is its historical longevity and its unique operational model. Established in 1887 as the Stormont Electric Light and Power Company, and later merging with the Cornwall Electric Street Railway Company in 1905, it proudly claims its place among Canada's oldest utilities. Today, it supplies electricity to approximately 25,365 customers, primarily sourcing the bulk of its power directly from Hydro-Québec, crossing provincial boundaries to do so. This cross-border arrangement, coupled with a small amount of its own generation through a cogeneration system – a Canadian first at the time – highlights its innovative approach to energy supply.
A Legacy Forged in Light: The Early Years
The genesis of electricity in Cornwall is intimately linked with one of history's greatest inventors, Thomas Edison. In 1883, Edison himself visited Cornwall to witness the illumination of a local factory using his revolutionary electric incandescent light system. This momentous event, the first of its kind in Canada for factory illumination, underscored Cornwall's early adoption of electrical technology. Following this, the Stormont Electric Light and Power Company was incorporated in 1887, marking the formal beginning of Cornwall Electric's journey.
The installation of Edison's direct current (DC) system at the Canada Cotton Manufacturing Company's weaving shed was a significant industrial milestone. H.M. Billsby, the project director, hired local talent like John MacMillan and Wilbur Reuben (W.R.) Hitchcock, who meticulously installed boilers, generators, and a hundred carbon filament bulbs. Edison's personal activation of the system on April 4, 1883, was a celebrated occasion, attended by a host of dignitaries and industrial leaders, solidifying Cornwall's place in the annals of electrical history. While Edison's DC system was revolutionary, it was W.R. Hitchcock who later advocated for the alternating current (AC) system, which allowed electricity to travel longer distances, eventually leading to the installation of 650 incandescent electric lamps on Cornwall's streets in 1887 under an agreement with Stormont Electric.
From Rails to Residential Power: The Railway Connection
Cornwall Electric's full corporate name, Cornwall Street Railway Light and Power Company Limited, is a testament to its dual origins. The Cornwall Electric Street Railway Company was incorporated in 1896, receiving a franchise to operate a streetcar service in Cornwall. This enterprise, initially envisioned by W.R. Hitchcock, began its passenger service on July 1, 1896, utilising electric locomotives to pull cars along nearly 4.8 kilometres of track. Recognising the need for additional revenue, the company expanded into freight service in 1899, transporting goods and even mail across the town.
The railway operations were an integral part of the company's early business model, even influencing its power generation. The street railway company's charter included the right to generate electricity for heating, lighting, and power, seeking to utilise electricity that was otherwise unused during the day. However, by 1949, the streetcar service was discontinued in favour of trolleybuses, and in 1971, the railway freight operations were sold to the Canadian National Railway for $430,000. Despite divesting all railway operations, the company wisely retained its full corporate name, preserving its historical roots.
The Evolving Landscape of Ownership
Cornwall Electric's history is also a narrative of changing ownership, reflecting broader economic and political shifts. Starting as a private entity, it transitioned through several significant phases:
| Ownership Period | Owner Name | Key Event/Status |
|---|---|---|
| 1887-1905 | Stormont Electric Light & Power Co. | Initial establishment, private company |
| 1896-1905 | Cornwall Electric Street Railway Co. | Established for streetcar service, also generated power |
| 1905-1977 | Sun Life Assurance Company of Canada | Merger of the two companies, consolidated operations |
| 1977-1997 | Corporation of the City of Cornwall | Municipally owned, focus on local control and community benefit |
| 1997-2002 | Consumers' Gas Company Ltd. | Privatisation, part of a larger energy company |
| 2002-Present | Fortis Inc. (via FortisOntario Inc.) | Multinational publicly traded company, current owner |
After the 1905 merger, Sun Life Assurance Company of Canada took ownership, consolidating the operations and leveraging its electricity for both streetcars and consumer distribution. This period saw the company's first general manager, William Hodge, a former director of Stormont Electric, who became instrumental in its early growth.
By the 1970s, Sun Life began divesting its assets, leading to the Corporation of the City of Cornwall purchasing Cornwall Electric in 1977 for $4.8 million. This marked a significant period of municipal ownership, with the city council appointing its first board of directors. For two decades, the utility remained under local control, a source of civic pride and stability.
However, the late 1990s brought provincial electricity market restructuring proposals, prompting the city council to seek a buyer. In 1997, despite local opposition and the formation of groups like 'Cornwall Ratepayers Against Panic-selling of Cornwall Electric (CRAP)', the city council voted to sell the company to Consumers' Gas Company Ltd. for $68 million. This decision was seen by some as a strategic move to de-risk the utility in a changing market. Finally, in May 2002, Enbridge Energy Distribution Inc. (formerly Consumers' Gas) sold Cornwall Electric to Fortis Inc., a Canadian multinational publicly traded holding company, for $67 million. Fortis Inc. operates Cornwall Electric under its Ontario subsidiary, FortisOntario Inc., securing its position as part of a larger, diversified energy conglomerate.
Securing and Diversifying Power Sources
Throughout its history, Cornwall Electric has strategically navigated the complexities of power acquisition. Unlike many municipalities in Ontario, Cornwall famously resisted joining the publicly owned Ontario Hydro in 1912. Despite heated debates and the promise of 'people's power,' residents voted to renew the company's private franchise, opting for stable rates and local control over the Hydro-towns' fluctuating charges. This independence was further validated by the Gregory Royal Commission, which found that Ontario Hydro had improperly tried to coerce Cornwall into joining its grid.
Initially, Cornwall Electric relied heavily on power purchased from St. Lawrence Power, which in turn received its power from Cedars Rapids Transmission Co. Ltd., primarily supplying ALCOA's aluminum smelter in Massena. This intricate web of agreements, including an 85-year contract extending to 2000, ensured a consistent supply. However, recognising the need for greater control and stability, Cornwall Electric eventually acquired St. Lawrence Power Company from Niagara Mohawk Power for $13.5 million in 1987, after three previous attempts.
A pivotal moment came in 1985 when ALCOA sold Cedars Rapids Transmission Company Limited to Hydro-Québec. This transaction effectively positioned Hydro-Québec as the direct supplier to Cornwall Electric via the Cedars Rapids Transmission line, a 72-kilometre, double-circuit 120-kilovolt interconnection linking Quebec to New York. In 2016, Cornwall Electric solidified this relationship further, signing a ten-year agreement with Hydro-Québec Energy Marketing to purchase a minimum of 537 gigawatt hours per year, ensuring a robust and affordable power supply.
Beyond purchasing power, Cornwall Electric has also embraced internal generation. In 1994, concerned about over-reliance on a single supplier, it contracted Marsh Energy Inc. to design Canada's first municipally owned hot water district heating and cogeneration system. Operational since 1995 and run by CDH District Heating Limited (a FortisOntario Inc. subsidiary), this innovative plant feeds 5 megawatts electric (MWe) of base load electricity into the municipal grid while also providing 7 megawatts thermal heat (MWth) to city buildings, schools, and a hospital via an underground distribution network. This system showcases Cornwall Electric's commitment to energy independence and efficiency.
Community Resilience and Lasting Impact
Cornwall Electric's deep roots in the community extend beyond simply providing power. The company and its leadership have historically played a significant role in the development of Cornwall. From encouraging investment in local industries to financing community projects like the Water Street Arena after the devastating 'great fire of 1933', its involvement has been profound.
One of the most remarkable demonstrations of its community commitment and ingenuity occurred during the January 1998 North American Ice Storm. This prolonged natural disaster left much of Eastern Ontario and Western Quebec without electricity. Despite being situated near the Moses-Saunders Power Dam, Cornwall also faced a blackout. In a testament to quick thinking and unconventional solutions, a Cornwall Electric employee, an archer, used a bow and arrow to throw a line over dangerously ice-weighted wires connecting the power plant to Cornwall. This allowed workers to bounce the lines, shedding the ice and restoring power to meet 75% of Cornwall residents' electricity needs during the crisis.
Following the sale of Cornwall Electric to Consumers' Gas, the city of Cornwall wisely used the proceeds to establish the 'Progress Fund'. This fund, later protected by a by-law requiring a minimum balance of $25 million, has since been instrumental in financing numerous quality-of-life projects in the city. These include the redevelopment of the Cornwall Community Hospital, the establishment of a hospice, the construction of an aquatic centre, and contributions to the Benson Centre sports complex, leaving a lasting legacy for the community.
Regulatory Framework and Customer Benefits
Cornwall Electric operates under strict regulatory oversight. It is registered as an Ontario Business Corporation and holds Electricity Distribution Licence ED-2004-0405, issued by the Ontario Energy Board (OEB) and valid until December 31, 2030. Uniquely, the company has been granted legislative exemptions by the provincial regulator under the 1998 Ontario Electricity Act. This allows it to operate under a 35-year franchise agreement with the city of Cornwall, dating back to July 31, 1998, as well as similar agreements with neighbouring townships.
Under these agreements, electricity rates are reset annually, calculated based on a formula that accounts for inflation, load growth, and customer growth. This distinct regulatory framework has enabled Cornwall Electric to consistently provide its electricity consumers with some of the lowest rates in Ontario, a significant benefit to residents and businesses in its service area. This blend of historical innovation, strategic power sourcing, and a unique regulatory position underscores Cornwall Electric's enduring role as a vital utility in Eastern Ontario.
Frequently Asked Questions (FAQs)
What areas does Cornwall Electric serve?
Cornwall Electric supplies electricity to customers in the city of Cornwall, the townships of South Glengarry and South Stormont, and a portion of the Mohawk people's territory of Akwesasne, all located in Eastern Ontario, Canada.
Where does Cornwall Electric get its power?
The bulk of Cornwall Electric's power is obtained directly from Hydro-Québec, crossing provincial boundaries via the Cedars Rapids Transmission line. Additionally, the company generates a small amount of its own power using a cogeneration system.
Is Cornwall Electric publicly or privately owned?
Cornwall Electric is currently owned and operated by Fortis Inc. (via its subsidiary FortisOntario Inc.), which is a Canadian multinational publicly traded holding company. It transitioned from private ownership to municipal ownership (by the City of Cornwall) and then back to private ownership over its history.
Why are Cornwall Electric's rates often lower than other parts of Ontario?
Cornwall Electric has legislative exemptions from the provincial regulator under the 1998 Ontario Electricity Act and operates under specific franchise agreements. Its rates are reset annually based on a formula that includes adjustments for inflation and growth, and its unique power purchase agreement with Hydro-Québec contributes to its ability to offer competitive rates.
What was the significance of the 1998 Ice Storm for Cornwall Electric?
During the severe 1998 Ice Storm, Cornwall Electric demonstrated remarkable resilience. Despite widespread power outages, the company managed to restore 75% of Cornwall's electricity needs by ingeniously using an archer to string a line over ice-weighted wires, allowing workers to clear the lines and energise them from the local Moses-Saunders Power Dam for the first time.
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