The Mayor’s blog post “Retweet and share these seven facts about a Guelph Hydro merger” points out that rate increases don’t necessarily reflect how well a utility is performing now, or how well it may perform in the future.
Electric utilities are not all the same. Some have aging assets while others have brand new infrastructure. Some cities are growing faster than others. Some areas have had big storms that caused a lot of damage.
Comparing historic rate increases doesn’t really tell us much about the company as a whole.
An enormous amount of analysis has gone into confirming that a Guelph Hydro-Alectra merger is beneficial to both utilities, Guelph Hydro customers, the community, and the City of Guelph as shareholder of Guelph Hydro.
We can say, for a fact, that a merger would allow Guelph Hydro customers to avoid cost of service rate increases in 2021 and 2026.That’s because the Ontario Energy Board (OEB) gives merged utilities 10 years to recover transition costs, and start saving money.