Meaford council has given initial approval to a three-year pre-development agreement with pumped storage proponent TC Energy, that could provide up to $3.24 million of discretionary funding over three years for the municipality.
“First and foremost, this Pre-Development Agreement is not a replacement nor an alternative to a Community Benefit Agreement that is required through condition 3 of the Conditional Willing Host Community Support Motion,” staff advised in their July 27 report to council. “The purpose of this report is to provide Council with the opportunity to enter into in Pre-Development Agreement with TC Energy that provides funding as outlined in this report prior to the completion of the Impact Assessment Agency of Canada (IAAC) process.”
In a media release issued on July 21, the municipality said that the agreement includes four funding streams that would benefit the municipality.
“If approved, the Pre-Development Agreement would include four funding streams: a Community Support Payment of $1 million annually for three years funded by TC Energy; Municipal Capacity Funding up to $250,000 annually through provincial pre-development funding; scholarships of $25,000 annually for three years funded by TC Energy; and a Community Investment Fund matching up to $80,000 annually for three years funded by TC Energy,” staff advised in their report to council. “Together, the proposed funding streams could provide up to $1.355 million annually to the Municipality and community groups, and up to $3.24 million over the next three years directly to the Municipality.”
During the public participation portion of the July 27 meeting, some residents expressed concern about the agreement, and suggested there was no need for any agreement at this time, and that the agreement would unnecessarily bind the next term of council to an agreement that they might not want, so they urged council to reject the agreement.
In their report, staff explained that while negotiations had taken place to develop a Community Benefit Agreement, it was determined that it was too early in the process to continue those negotiations.
“During the negotiations on the Community Benefit Agreement (CBA) it was determined that even though this project has been ongoing since 2018 and subject to a range of reports and information shared through the Pumped Storage Advisory Committee (PSAC), Committee of the Whole, Council and Public meetings, the finalization of the long term Community Benefit Agreement (CBA) was actually found to be premature since so many unknown pieces are still being processed through the early stages of the Impact Assessment Agency of Canada (IAAC) process. In addition, the Department of National Defence (DND) are also processing their own Environmental Impact Assessment, and the finding(s) of that process are still in the infancy stage and not yet clear,” staff advised in their 21-page report. “Therefore, staff are recommending that it is in the Community’s best interest to enter into a three (3) year Pre-Development Agreement with TC Energy with the intention of recommencing negotiations on a Long Term Community Benefit Agreement (CBA) once the IAAC process is further along so that a Community Benefit Agreement process once there is a better understanding of whether the Ontario Pumped Storage Project is a suitable and viable project and is closer to achieving a Final Investment Decision (FID).”
During council’s discussion of the proposed pre-development agreement, Councillor Harley Greenfield noted that while $1 million is significant funding, it doesn’t stretch as far as some might expect.
“A million dollars, it’s a lot of money, even in today’s world, it is a substantial amount of money, and it’s certainly appealing for council to have that kind of money in place,” Greenfield told council. “I guess my question is, how much is a willing host commitment worth in today’s world? A million dollars will pulverize, add three or four inches of gravel, replace two or three culverts, and hard-top, not asphalt, a kilometre of road. It’s a benefit, certainly for our municipality, but three years ago I voted against this project. At the time I had environmental concerns, I still have environmental concerns.”
Greenfield also asked, how the now more than $9 billion project proposal would impact hydro bills for Ontarians.
“What’s that going to do to the cost of our electricity? We need it, I’m not denying that, but how’s that going to affect the prices?” Greenfield asked.
In the July 21 media release announcing the proposed pre-development agreement, Mayor Ross Kentner suggested that the funding included in the agreement would benefit the municipality.
“In addition to the Municipal Capacity Funding already provided through the province, this agreement would create new funding opportunities for the Municipality and community groups while the project remains under review. Rather than waiting three to four years for the Impact Assessment Agency of Canada process to be completed, this funding would allow us to continue building municipal capacity, supporting local initiatives, and ensuring we are well-positioned to address community needs,” said Kentner.
Ultimately, council approved the recommendation with a 5-2 vote with Councillors Greenfield and Forder voting against.
Asked for comment regarding council’s vote to approve the pre-development agreement during the July 27 council meeting, Sara Beasley, Communications Lead for the Ontario Pumped Storage Project, told The Independent that TC Energy welcomes council’s decision to approve the agreement.
“We welcome Council’s decision to approve the Pre-Development Agreement. This milestone reflects the constructive partnership we have built with Meaford and unlocks meaningful funding for community priorities while supporting the municipality’s ongoing review of the Ontario Pumped Storage Project. The agreement demonstrates how TC Energy works with host communities to ensure local interests are considered and communities are positioned to benefit from project development,” said Beasley.
TC Energy’s Executive Vice-President and President of Power & Energy Solutions for TC Energy said that the company has appreciated the collaborative approach taken by council.
“As we work to connect energy to the people who depend on it, we also strive to connect communities to the opportunities that infrastructure development can create,” Greg Grant, Executive Vice-President and President, Power & Energy Solutions, TC Energy, told The Independent. “We appreciate the collaborative approach taken by Meaford Council and look forward to continuing to work together as the Ontario Pumped Storage Project advances.”
In their report, staff credited consultant StrategyCorp with helping to create the pre-development agreement.
“Since mid-2025, the Municipality has continued to engage with StrategyCorp to assist with the development of the original Community Benefit Agreement Model and over the past four (4) months has been instrumental in assisting with the proposed Pre-Development Agreement. The Municipality has also engaged the services of Borden Ladner Gervais LLP (BLG) who was tasked with providing external Legal Counsel and advice for the Community Benefit Agreement and ultimately provided excellent guidance on the proposed Pre- Development Agreement,” staff noted in their report.
The full 21 page report can be found on the municipal website (meaford.ca)
