Shareholders approve merger of Enersource, Horizon and PowerStream
November 20, 2015 | By Anthony Capkun
November 20, 2015 – A proposal to merge Ontario municipal electricity utilities Enersource, Horizon Utilities and PowerStream—and jointly acquire Hydro One Brampton—has now received approval from all shareholders, reports Enersource
“By generating cost savings through significant economies of scale, the merger will reduce the rising cost of electricity for customers and improve returns for municipal shareholders…” said merger spokesman John Crean.
Last night, the City of Markham became the final shareholder to approve the transaction (subject to having certain agreements in place). The other six shareholders involved in the transaction include the municipalities of Barrie, Hamilton, Mississauga, St. Catharines and Vaughan, and Borealis (a division of the Ontario Municipal Employees Retirement System and a shareholder of Enersource).
“By maintaining competitive local distribution rates, the communities also remain attractive to new investment, which benefits all municipal taxpayers and electricity ratepayers,” added Crean.
Once the agreements are finalized, details of the transaction will be forwarded to the Ontario Energy Board for regulatory approval.
When the transaction is completed, the new utility will deliver electricity and related services to more than 900,000 residential and commercial customers in the Greater Golden Horseshoe area, says Enersource, making it Ontario’s second-largest local electric distribution company.
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