PowerStream could be part of larger utility

Thebarrieexaminer.com
Aug. 24, 2015
By Bob Bruton

A decision on a merger involving PowerStream, which provides Barrie residents with their electricity, is expected next month.

In April, the Ontario government announced that negotiations were underway concerning a potential three-way merger of PowerStream, Enersource and Horizon Utilities, with an opportunity to acquire Hydro One Brampton Networks from the province to create the second-largest local distribution company in Ontario.

“This merger, as with the earlier merger of Barrie Hydro and PowerStream, has the potential to reduce costs to customers and increase returns for taxpayers,” said Mayor Jeff Lehman.

“By having a larger entity, we will be able to achieve savings through economies of scale, and those savings will be passed on to the customers. We will also be in a stronger position to take advantage of implementing new technologies that will help us to better serve, and offer more services, to our customers.”

PowerStream's shareholders - Barrie, Markham and Vaughan - have partnered to evaluate the proposed merger transaction.

Navigant and BDR North America have been retained to provide independent advice and financial due diligence, and Gowlings LLP will undertake legal due diligence to support a decision on this transaction.

Barrie Hydro Holdings will receive and consider a recommendation from PowerStream's board regarding the proposed merger with Enersource and Horizon, and the purchase option for Hydro One Brampton, on Sept. 8.

On Sept. 14, the Barrie Hydro Holdings recommendation will be forwarded to its shareholder, the City of Barrie, through general committee for consideration, and recommendation to city council. This 5 p.m. meeting will be open to the public.

General committee’s recommendation will be considered by council on Sept. 21, a meeting that begins at 7 p.m.

Should an individual be opposed to the recommendation from general committee, he or she may submit a request to the city clerk to provide a deputation at the meeting regarding this opposition.

The deputation would be heard by members of city council before any final council decision on the merger.