Enersource Merger Negotiations Continue

On April 16, 2015, the Ontario Government announced that negotiations were underway with respect to a potential three-way merger of Enersource Corporation, PowerStream Holdings Inc., and Horizon Utilities Corporation, with an opportunity to acquire Hydro One Brampton Networks Inc. from the Province to create the second largest local distribution company in Ontario.

The proposed merger of Enersource, Horizon Utilities and PowerStream and acquisition of the shares of Hydro One Brampton, would create a single new publicly-owned company that would serve over 900,000 customers in the Greater Golden Horseshoe Area. The proposed merger will require negotiation of a definitive agreement that must be approved by all shareholders, including the City of Mississauga and will be subject to regulatory approvals.

Enersource, which is 90 per cent owned by the City of Mississauga, is scheduled to provide a public presentation with an overview of the merger to General Committee on September 23.

There will be opportunity for the public to make deputations prior to a final vote on the proposal which will take place at Council on September 30.

If Council’s decision is to proceed with the proposed merger it will be subject to approval by the Ontario Energy Board.