Ontario’s energy minister was in Chatham Monday to learn more about the proposed voluntary merger between Entegrus Powerlines Inc. and St. Thomas Energy Inc.
Glenn Thibeault, Ontario Minister of Energy, met with Chatham-Kent Mayor Randy Hope, St. Thomas Mayor Heather Jackson and utility staff from both municipalities at the Entegrus office in Chatham, where Thibeault expressed his and the government’s support of utilities finding efficiencies through mergers in an effort to keep energy costs affordable for customers.
“Our government continues to look for ways to help lower electricity costs for Ontario families and businesses and to support improved local utilities. I am pleased that both municipalities involved recognize these potential benefits for their ratepayers,” Thibeault said in a release.
Thibeault said he knows other parts of the province will look to this merger as an example of utilities working together to keep costs in check.
The merger, which has been approved by both utility boards and municipal councils, still must go before the Ontario Energy Board, an independent body with the mandate to protect energy customers.
Jim Hogan, CEO of Entegrus, said that he anticipates going before the OEB in January of 2018 and if approved, “the merger will make the combined utility the 11th largest in Ontario, serving close to 60,000 customers in Southwestern Ontario.
“Together, Entegrus and St. Thomas Energy would run an organization that our shareholders can be proud to invest in, our employees can be proud to work at and our customers can be proud to know that we’re providing the best possible service at a price that is both fair and reasonable,” Hogan added.
When asked about the reduction in energy distribution costs, Hogan said he anticipates that if the merger is approved, Entegrus would be able to flatline rates for eight to 10 years for businesses and homes, and would then see a rate reduction of about $30 per household.
Both companies expect to hit the ground running if the merger is approved by the OEB. All parties agree the companies have similar visions and values, and a commitment to safety, with both utilities consistently achieving industry standards in meeting conservation standards set by the IESO, service reliability and customer service.
The head office for the merged utility would be in Chatham, according to Hogan, and frontline staffing would remain the same. It would be majority owned by the Municipality of Chatham-Kent, followed by the City of St. Thomas, with Corix, a leading provider of water and wastewater infrastructure and services throughout Ontario and North America, remaining a minority shareholder.
Chatham-Kent Mayor Randy Hope said he is looking forward to advancing the partnership of Entegrus with St. Thomas Energy and continuing the community’s dedication to technical leadership and green energy projects and solutions in a primarily agricultural area.
For the future, Hope doesn’t rule out looking at more mergers within Southwestern Ontario if they find the perfect fit, but for now they are focusing on doing what is required by the OEB for this merger to be approved.
