Horizon Utilities officials delay merger talks with city

hamiltonnews.com
Sept. 3, 2015
By Kevin Werner

The showdown between Hamilton politicians and Horizon Utilities executives over the company’s proposed merger was delayed until later this month.

Ward 4 councillor Sam Merulla has already tabled a motion that opposes the proposed merger with Horizon Utilities with three other southern Ontario utilities to make it the second-largest power distributor in the province serving over one million customers.

Max Cananzi, president and chief executive officer for Horizon Utilities, told members of the general issues committee Sept. 2 that its original timeline to present to councillors a business plan for the merger was “too aggressive.” He said the report is “nearly completed” and will be ready within three weeks.

The delay prevented Merulla from introducing his motion. He has stated that he wants Hamilton to retain control over its own utility.

But that didn’t stop the committee from going behind closed doors for nearly two hours to hear an update from Cananzi and other Horizon Utilities executives on the merger details.

The merger, announced last March, will see Horizon join Enersource Corp., Powerstream, and Hydro One Brampton. Hamilton politicians at the time requested Horizon officials to provide a report to the city, which is Horizon’s major shareholder.

The proposed new utility would service customers in Barrie, Mississauga, Hamilton, St. Catharines, Vaughan, Markham, Brampton and Penetanguishene.

Ontario Ministry of Energy officials say the merger is expected to save about $1 billion through harmonized administration and management and provide a more efficient delivery system.

All municipalities need to approve of the merger. If one municipality opposes the deal, the merger ends.

Barrie councillors are scheduled to debate the proposed merger Sept. 14 and 15. Barrie Hydro merged in 2009 with Powerstream, which also includes the municipalities of Vaughan and Markham.

Horizon was created in 2000 out of the five existing utilities. In 2005 it merged with St. Catharines Hydro providing electricity to about 242,000 customers in both cities.