Questions and Comments

Question / Comment:

Did Alectra's operating costs actually decrease for the other partners after they joined?

Response:

Alectra is still implementing the changes associated with merging several local utility companies, so final figures are not yet available. Here are some other examples of previous mergers that led to savings for electricity customers.

According to page 23 of this report: Renewing Ontario’s Electricity Distribution Sector: Putting the Consumer First:

  • Veridian was created through the consolidation of the three neighbouring distribution utilities in Pickering, Ajax and Clarington. In the first three years of operation, Veridian reportedly achieved savings of 13% in operations management and administration expenses. Veridian Connections’ purchase of Scugog and Gravenhurst Hydro, 2005: As a result of the acquisition, the total cost of operating, maintaining and administering the combined utility decreased from $21.1 million to $18.8 million, an 11% reduction. This works out to savings of almost $40 per customer per year
  • PowerStream was created in 2004 by the voluntary merger of the distribution utilities of Markham and Vaughan and the acquisition of Richmond Hill’s LDC. That consolidation brought about $6.9 million in annual cost savings

Today, larger utilities offer services some smaller utilities may not, such as advanced energy mapping, outage management systems, smart-grid, smart home and smart city initiatives, electric vehicle charging stations, longer customer service hours, e-billing options etc.

Visit the News and resources page to learn more about past utility mergers.

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