Guelph Hydro-Alectra merger being considered by Ontario Energy Board

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Ontario Energy Board to decide if merger passes “no harm test”

In December 2017, after more than a year of industry research, a comprehensive financial analysis, and community engagement, Guelph City Council voted in favour of a merger between Guelph Hydro Electric Systems and Alectra Inc.

In March 2018, the City of Guelph and the joint owners of Alectra submitted a Mergers, Acquisitions, Amalgamations, and Divestitures (MAADs) application to the Ontario Energy Board (OEB). The OEB is considering the application and expected to make its decision in late 2018 or early 2019.

View the Guelph Hydro-Alectra merger application

About the Ontario Energy Board’s “no harm test”

The board will use what is called a “no harm test” to decide whether customers would be harmed by the proposed merger between the two electricity distribution companies.

To pass the no harm test, The City and the shareholders on Alectra must provide evidence to demonstrate that customers’ rates and service would be as good as or better than they would have been without a merger.

Specifically, the OEB must determine if the merger application is likely to:

  • protect the interests of consumers with respect to prices and the adequacy, reliability, and quality of electricity service
    • promote the education of consumers
  • promote economic efficiency and cost-effectiveness in the generation, transmission, distribution, sale and demand management of electricity and to facilitate the maintenance of a financially viable electricity industry
  • promote electricity conservation and demand management in a manner consistent with the policies of the Government of Ontario, including having regard to the consumer’s economic circumstances
  • facilitate the implementation of a smart grid in Ontario
  • promote the use and generation of electricity from renewable energy sources in a manner consistent with the policies of the Government of Ontario, including the timely expansion or reinforcement of transmission systems and distribution systems to accommodate the connection of renewable energy generation facilities

Updates about the application being considered by the Ontario Energy Board will be posted at guelph.ca/energy, guelphhydro.com and alectrautilities.com.

About Alectra Utilities

Alectra Utilities is shaping the future of energy in Ontario based on the company’s strong legacy from the past. Alectra is moving forward – as one organization – to provide safe, reliable and innovative energy solutions to families and businesses across the Greater Golden Horseshoe area.

Alectra is a publicly-owned utility formed with the merger of three local electrical utilities – Enersource, Horizon Utilities, PowerStream – and the subsequent joint purchase of Hydro One Brampton. The cities of Barrie, Hamilton, Markham, Mississauga, St. Catharines, and Vaughan, through their respective holding companies, and the Ontario Municipal Employee Retirement System are joint owners of Alectra.

alectrautilities.com

About Guelph Hydro Electric Systems Inc.

Guelph Hydro is proudly contributing to the growth, prosperity and well-being of 55,000 customers in Guelph and Rockwood, Ontario by providing safe, reliable electricity distribution services. The company is owned by Guelph Municipal Holdings Inc., which is owned by the City of Guelph.

guelphhydro.com

Resources

358 KBGuelph Hydro Alectra merger news April 12

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