Councillors skeptical of hydro merger benefits

900chml.com
Sept. 30, 2015
By Ken Mann

Horizon Utilities has layed out its case for a merger with utilities in Mississauga, Barrie, Markham and Vaughan, but Hamiton politicians are skeptical.

Utility President Max Cananzi has told a meeting at city hall that there would be no reduction in service levels and that benefits through consolidation would include a four million dollar annual increase in the city’s dividend, as well as savings for customers of roughly 40 dollars per year.

Cananzi adds that job losses resulting from consolidation would be achieved through attrition not layoffs.

Councillor Matthew Green questions whether they are getting a balanced perspective saying that the presentation is “fairly glossy in nature”.

Ward 7's Scott Duvall agrees comparing it to amalgamation, indicating that while it looks good now, “what about later?”

The deal would lead to a loss of control for the city, which currently owns nearly 80 per cent of Horizon’s shares. That would drop to 18% of the merged company. Council has some time to think about it as a vote on the proposal is scheduled for October.30th.