October 24, 2016ByRenée Francoeur
October 24, 2016 – A Memorandum of Understanding (MOU) between Thunder Bay Hydro and Kenora Hydro was signed Friday to authorize the exploration of a merger between the two utilities.
“The current technological and regulatory environment offers both opportunities for and challenges to local electricity distribution companies that might be better addressed through an integration of resources,” says Dave Sinclair, president and CEO of Kenora Hydro. “Our two utilities have already worked together in areas such as conservation, back office support and the acquisition of smart meter technology. We share common values and have agreed on some vital common objectives as we explore the possibility of a merger.”
The two north-western Ontario utilities say they will now begin a consultation process of analyzing the potential advantages and feasibility of how their customers, municipal shareholders and other stakeholders might benefit through such a merger.
Ultimately any recommendation resulting from this analysis to merge the utilities will require the approval of both the City of Kenora and the City of Thunder Bay, Thunder Bay Hydro noted, as they are the municipal shareholders of each company.
Kenora Hydro has 14 employees for its 5600 customers and Thunder Bay Hydro has 130 employees who service electrical distribution to over 50,000 customers.
A copy of the MOU will be available on the websites of both utilities.
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