City Council to vote on proposed Guelph Hydro merger December 13

City Council to vote on proposed Guelph Hydro merger December 13

Negotiating a merger between Guelph Hydro and Alectra Utilities

On October 5, 2017, after more than a year of exploring options and consulting our community, Guelph City Council decided to begin negotiating a merger between Guelph Hydro Electric Systems and Alectra.

Alectra, an innovative, municipally-owned hydro utility, provides power and related services to about one million customers in southern Ontario.

Here’s how a Guelph Hydro-Alectra partnership is expected to benefit residents and businesses in Guelph and Rockwood.

Better Rates

Guelph and Rockwood customers would avoid an estimated 5% distribution rate increase in 2021, and another estimated 5% increase in 2026. Customers would also benefit from the savings expected from consolidating the two companies.

Learn more about electricity distribution rates

Reliable Service

Service would be the same or better. Local crews would respond to local calls and get support from a larger team during severe storms or emergencies.

Alectra would meet or exceed service standards and reliability for electricity distribution customers in Guelph and Rockwood.

Ownership

The City would receive a 4.63% ownership interest in Alectra, and one permanent seat on Alectra’s board of directors.

Alectra is 97% municipally-owned, with the remaining 3% owned by a subsidiary of the Ontario Municipal Employees Retirement System. Alectra’s existing unanimous shareholders’ agreement is the result of extensive negotiation among its shareholders, none of whom planned to privatize.

Community Planning and Investment

A merger would offer higher dividends for the City to invest in local infrastructure, programs, and services.

Next year, in addition to its regular dividend, Guelph Hydro would pay the City a special dividend of $18.5 million.

Over the next 20 years, the City would receive $10 million more than it would if Guelph Hydro continued operating alone.

Local Jobs

Guelph Hydro employs about 130 people. About 30 positions are expected to be addressed through attrition, voluntary retirement, or voluntary separation whenever possible. Another 30 positions would be offered relocation opportunities starting in 2019, with most moves occurring in 2020 and 2022.

Additionally, the Green Energy & Technology Centre would employ eight to 10 people.

Environmental Sustainability

As part of a merger, Alectra would establish the Green Energy and Technology Centre (GRE&T) at Guelph Hydro’s current location.

Alectra would invest $5 million to renovate parts of Guelph Hydro’s existing headquarters into demonstration areas, laboratories or showrooms, and another $3 million a year to fund pilot projects, demonstrations, salaries, administration, marketing, and partnerships.

Ontario Energy Board Approval

The merger would be submitted to the Ontario Energy Board (OEB) for approval. Among other things, the OEB would have to be satisfied that the merger would not cause harm to consumers with respect to price, adequacy, reliability and quality of electricity service.

Better Rates

Guelph and Rockwood customers would avoid an estimated 5% distribution rate increase in 2021, and another estimated 5% increase in 2026. Customers would also benefit from the savings expected from consolidating the two companies.

Learn more about electricity distribution rates

Reliable Service

Service would be the same or better. Local crews would respond to local calls and get support from a larger team during severe storms or emergencies.

Alectra would meet or exceed service standards and reliability for electricity distribution customers in Guelph and Rockwood.

Ownership

The City would receive a 4.63% ownership interest in Alectra, and one permanent seat on Alectra’s board of directors.

Alectra is 97% municipally-owned, with the remaining 3% owned by a subsidiary of the Ontario Municipal Employees Retirement System. Alectra’s existing unanimous shareholders’ agreement is the result of extensive negotiation among its shareholders, none of whom planned to privatize.

Community Planning and Investment

A merger would offer higher dividends for the City to invest in local infrastructure, programs, and services.

Next year, in addition to its regular dividend, Guelph Hydro would pay the City a special dividend of $18.5 million.

Over the next 20 years, the City would receive $10 million more than it would if Guelph Hydro continued operating alone.

Local Jobs

Guelph Hydro employs about 130 people. About 30 positions are expected to be addressed through attrition, voluntary retirement, or voluntary separation whenever possible. Another 30 positions would be offered relocation opportunities starting in 2019, with most moves occurring in 2020 and 2022.

Additionally, the Green Energy & Technology Centre would employ eight to 10 people.

Environmental Sustainability

As part of a merger, Alectra would establish the Green Energy and Technology Centre (GRE&T) at Guelph Hydro’s current location.

Alectra would invest $5 million to renovate parts of Guelph Hydro’s existing headquarters into demonstration areas, laboratories or showrooms, and another $3 million a year to fund pilot projects, demonstrations, salaries, administration, marketing, and partnerships.

Ontario Energy Board Approval

The merger would be submitted to the Ontario Energy Board (OEB) for approval. Among other things, the OEB would have to be satisfied that the merger would not cause harm to consumers with respect to price, adequacy, reliability and quality of electricity service.

Compare Both Options

See how this merger compares to maintaining full ownership of Guelph Hydro

Learn More

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Guelph City Council appoints Strategies and Options Committee to compare maintaining full ownership of Guelph Hydro regarding buying, selling or merging with other utilities.

October 2016

Guelph City Council appoints Strategies and Options Committee to compare maintaining full ownership of Guelph Hydro regarding buying, selling or merging with other utilities.

January 2017

Our community is invited to learn more, and ‘ask us anything’ using open house events, telephone surveys, Energizing Tomorrow website and social media.

February 2017

City Council decides not to sell Guelph Hydro, and directs Strategies and Options Committee to explore possible mergers with publicly-owned utilities and maintaining full ownership of Guelph Hydro.

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June 2017

City Council approves further research into possible mergers.

Summer 2017

Guelph Hydro customers continues to ask questions, share comments, and participate in conversations with the Strategies and Options Committee at locations throughout the city.

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October 2017

City Council enters into formal merger negotiations with Alectra Utilities

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Winter 2017 to 2018

If merger negotiations are successful, partners submit a Merger, Acquisition, Amalgamation and Divestiture Application to the Ontario Energy Board.

Develop implementation plan

Establish leadership and governance