Guelph Hydro begins merger talks with Alectra

By cceolin

The city of Guelph is starting merger negotiations between Guelph Hydro and Canada’s largest municipally-owned utility.

City officials announced Wednesday it has chosen Mississauga-based power company Alectra as a partner.

While savings are expected for Guelph Hydro customers, as the first utility in southwestern Ontario to merge with Alectra, the city also stands to benefit from local employment opportunities.

Guelph Mayor Cam Guthrie says there will be a significant investment made by Alectra to develop a Green Energy & Technology Centre in Guelph, adding they also expect an increase in annual dividends.

“We can use that money to give more investments and opportunities back to the [community],” he says.

Guthrie says the announcement comes after Guelph Hydro spent more than a year engaging in public consultations, to decide whether it should sell, merge or stand alone in this ever changing energy sector.

What they heard was that residents want better rates and a local presence. Guthrie says he has full confidence a possible merger would be the best way to deliver on this, and be properly positioned for the future.

“We’ve been looking at what the future of Guelph Hydro will be,” says Guthrie. “If we go at it alone, we really will be doing — I believe — a disservice to the community.”

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