Kenora Hydro Merger with Thunder Bay Hydro
THUNDER BAY, ONTARIO November 16, 2018 (LSN) The Ontario Energy Board (OEB) has approved the merger of Kenora Hydro Electric Corporation Ltd. (Kenora Hydro) and Thunder Bay Hydro Electricity Distribution Inc. (Thunder Bay Hydro).
“Cost-efficiencies are expected and will directly benefit all customers” says Robert Mace, President and CEO of Thunder Bay Hydro, “Changes are coming in the new year, beginning with the unveiling our new brand”.
In its decision on the merger application submitted by the two local distribution companies on April 12, 2018, the OEB has made the following statements:
- The OEB has determined that the Applicants have satisfied the no harm test with respect to price, cost effectiveness and economic efficiency. The evidence shows that the underlying cost structures to serve acquired customers following the proposed merger will be no higher than they otherwise would have been.
- The OEB is satisfied that the way in which the Applicants propose to provide service in the areas currently served by Thunder Bay Hydro and Kenora Hydro will be effective in continuing existing levels of service.
- The OEB is satisfied that the proposed amalgamation of Thunder Bay Hydro and Kenora Hydro, including the Applicants’ five year deferral rate rebasing proposal, meets the “no harm” test. A no-harm test considers whether the proposed transaction will have an adverse effect on customers.
Effective January 1, 2019, both the City of Kenora and City of Thunder Bay will proportionally own the new utility; 9 percent and 91 percent respectively. Once finalized, the municipal-owned company will continue to provide distribution services to 56,425 residential and commercial customers currently under the management of the two electricity distributors. Local services will continue to be provided in both communities by local employees.
“Customers will continue to receive a high level of service and will soon benefit from added amenities” states Dave Sinclair, President and CEO of Kenora Hydro, “The merger will create positive effects for both communities and their future”
The OEB’s full decision can be found at tbhydro.on.ca/corporate/news/