In 1906, under Ontario’s Power Commission Act, the Hydro-Electric Power Commission of Ontario (HPEC or Ontario Hydro) was established. The company was created in order to build transmission lines to supply utilities with electricity generated by private companies already established in Niagara Falls. In 1999, the company was reorganized into five separate companies, including two commercial entities – Ontario Power Generation and Hydro One. Hydro One is now responsible for electricity transmission and distribution. It operates a large majority of the high voltage transmission grid across Ontario.
Hydro One has several subsidiaries in Ontario including the distribution utility for the city of Brampton. Its other subsidiaries include Hydro One Networks which serves the majority of rural regions in the province, and Hydro One Remotes which serves 19 communities that are not connected to the grid. It is currently one of the largest government-owned electricity agencies in Canada. However, in 2015, the Government of Ontario began to sell Hydro One shares to the public. The provincial government planned to sell up to 60 percent of the company but promises to hold 40 percent of its share. More recently, Hydro One made its first foray into international expansion by purchasing Avista.