Guelph Hydro, Alectra merger receives approval from Ontario Energy Board

A merger of Guelph Hydro and Alectra Utilities Corp. has been approved by the Ontario Energy Board, the city announced late Thursday.

Guelph Hydro and Alectra submitted an application on March 7 of this year. Alectra is a municipally owned utility that serves the Greater Golden Horseshoe area, including Mississauga, Hamilton, St. Catharines, Brampton and parts of York Region and Simcoe County..

The energy board said the two sides "satisfied the 'no harm' test with respect to price, cost effectiveness and economic efficiency."

"The evidence shows that the underlying cost structures to serve acquired customers following the proposed merger will be no higher than they otherwise would have been."

'Probably' the way togo

The announcement comes one year after the city announced it was in negotiations with Alectra and had signed a letter of understanding.

"We're very confident that with the analysis that we've done to date that this is probably the way we should go," Mayor Cam Guthrie said at the time.

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Guthrie dismissed concerns the merger won't save hydro customers money.

"What I do know for sure is the status quo ... is probably not the right path for Guelph Hydro to take and puts us at more of a risk of higher rates down the road," he said.

ExpectedJan. 1

In a release Thursday evening, city staff said Guelph "is expected to receive higher annual dividends which can be used to, among other things, invest in local infrastructure, programs, and services."

The current Guelph Hydro offices will become Alectra's southwest Ontario operations hub, and a new Green Energy and Technology Centre.

The merger is expected to close on Jan. 1, 2019 and Guelph will receive an estimated 4.63 per cent ownership interest in Alectra, as well as one permanent seat on Alectra's board of directors.

The merger is still subject to closing conditions.