Hamilton electricity customers could see higher bills as Alectra Inc. seeks up to $500 million in new equity from its municipal owners to fund a $3.1-billion capital plan for the 2027 to 2031 period — with the City of Hamilton’s share alone reaching as much as $86.55 million.
Alectra Inc. President and Chief Executive Officer Brian Bentz told Hamilton City Council, sitting as the Hamilton Utilities Corporation Shareholder on June 23, 2026, that the multi-municipality hydro utility will need to finance a $3.1-billion five-year capital plan. The City of Hamilton, as a 17.31 per cent stakeholder, will be expected to contribute its share of financing to support the massive buildout.
“In the next five years, we’re looking at a, I’ll say at a minimum, $200 million of new equity,” Bentz stated, referring to the total pool required from all municipal owners. “And probably closer to $400 million or $500 million of new equity. So that has to come from some source in order to maintain that capital structure.”
The City of Hamilton has pulled approximately $120 million in dividends from Alectra Inc. since the utility’s inception. When the utility was created, the Ontario Energy Board imposed a ten-year rebasing deferral period. Now, citing a need to meet growing electrical demand as residential users adopt technologies such as electric vehicles and heat pumps, accommodate business expansions, and support provincial housing growth mandates, Alectra Inc. has filed a rate application with the Ontario Energy Board for the 2027 to 2031 regulatory period.
According to data presented by Bentz, the City of Hamilton is projected to see approximately 200 megawatts of new electricity load growth across several core pockets. This estimate excludes the massive Steelport industrial redevelopment on the former Stelco lands, which is expected to require 200 megawatts when fully built out. The Steelport industrial site is serviced by existing transmission infrastructure, and new industries locating there will be required to fund their own hydro connection costs separately from Alectra’s capital plan.
“Hamilton continues to be one of our busiest areas across our customer connections group,” Bentz stated. “With significant activity occurring through transit projects, industrial, commercial, and institutional build-outs, and subdivisions.”
Alectra Inc. is currently relocating assets along the planned Light Rail Transit corridor, with more than 250 poles, close to 100 transformers, and over 50 kilometres of cable planned for construction in 2026. Additionally, the utility is managing a $26-million electrical relocation for the Ministry of Transportation’s Highway 5 and Highway 6 interchange project in Flamborough.
Following the presentation, Ward 9 Councillor Brad Clark asked if the proposed infrastructure costs would filter down to the public.
“So I’m taking by the answer to the question that the increasing demand and the increasing cost to generate that power will affect customers’ electricity bills,” Clark stated.
“Yes, likely it will,” Bentz replied.
He stated the utility must maintain a strict balance of 60 per cent debt and 40 per cent equity to safeguard its high-grade credit ratings with major agencies like DBRS Morningstar, S&P Global, and Fitch Ratings.
Bentz added that Alectra Inc. will be looking to federal and provincial infrastructure funding opportunities and investment funds such as pensions to offset the burden.
“Those are tools that we can use to potentially reduce the amount of equity required, whether it’s the Canada Infrastructure Bank, or rate relief, et cetera,” Bentz said. “And we’re looking at all of those options now to try and minimize, you know, the equity requirement. And get a sustainable funding model in front of Council by the first quarter.”
Alectra Inc. will present the expected municipal funding contribution and sustainable funding model in early 2027, placing the difficult financial decision in front of the newly elected council.
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Published: July 1, 2026
Last updated: July 1, 2026
Author: Joey Coleman
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