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Canada’s Guelph Hydro Electric Systems and Alectra Utilities have completed the merger of their two electricity distribution utilities.
Upon completion of the deal, the new merged entity is reported to be the largest municipally-owned electric utility in Canada by customer base and will retain the Alectra corporate name.
It will be co-branded Guelph Hydro and Alectra Utilities in the former Guelph Hydro service territory of Guelph and Rockwood for a period of time.
Customers of the City of Guelph and former Guelph Hydro clients are expected to benefit from the merger. Expected benefits include lower electricity distribution rates and improved reliability and power quality for homes and businesses.
Furthermore, an operations hub for south-west Ontario will be maintained in Guelph and a new Green Energy & Technology Centre will be created.
Alectra president and CEO Brian Bentz said: “Providing customers with safe, reliable and efficient service will continue to be a top priority for our company.
“I am certain this merger will prove to be a win-win-win situation for our customers, shareholders and the communities we serve.”
Additionally, Alectra’s original 13-member Board of Directors will now include representation from the City of Guelph.
In October 2017, the City of Guelph began merger negotiations between Guelph Hydro Electric Systems and Alectra, and later that year in December the city council voted in favour of the merger.
Last October, the Ontario Energy Board (OEB) also approved the merger of the two utilities.
Alectra Board Chair Norm Loberg said: “This transaction will benefit all Alectra customers. We’re confident the merger will not only help to reduce the upward pressure on customer distribution rates but will also serve as a catalyst for developing and delivering new energy products and services.”
Alectra is a family of electricity distribution utilities delivering to homes and businesses in Ontario’s Greater Golden Horseshoe area. The Alectra family of companies includes Alectra, Alectra Utilities Corporation and Alectra Energy Solutions.