Mississauga, along with one million customers in the Greater Toronto and Hamilton Area, will be served by the newly formed utility known as Alectra Utilities. The proposal to merge municipal electricity utilities Enersource, Horizon Utilities, Hydro One Brampton and PowerStream was approved by the Ontario Energy Board (OEB) last December.
“This milestone merger creates one of the largest municipally-owned electricity utilities in Canada,” said Mayor Bonnie Crombie. “The merger will result in an improved company that will provide the residents and businesses of all 15 communities with cost savings, new efficiencies and improved customer service, along with safer, reliable and clean energy.”
The approval from the OEB allowed Enersource, Horizon Utilities and PowerStream to merge on February 1, 2017 and purchase Hydro One Brampton as of February 28. This consolidation will create the second largest municipally-owned electric utility by customer base in North America.
Enersource Corporation will continue to exist post-merger, to receive the dividends from the newly merged utility Alectra, and manage the debt which remains in the corporation.
“As a majority shareholder in Enersource, we are confident the merged company will provide the best value for our investment and ensure residents receive a consistent level of service,” said Janice Baker, City Manager and Chief Administrative Officer. “Mississauga is projected to receive $600 million in dividends over the next 25 years from Alectra. These funds will go toward our city-building priorities.”
Last December, Council approved the appointment of Ward 6 Councillor Ron Starr, David Warner and Linda Kuga Pikulin to the Enersource Board of Directors.
For more information about Alectra Utilities, visit alectrautilities.com.