New Merger To Create 3rd Largest LDC in Ontario

subscribe

MARKHAM & VAUGHAN, ON – Building upon the success of their joint purchase of Richmond Hill Hydro Inc. (RHHI) in 2001, Hydro Vaughan Distribution Inc. (HVDI) and Markham Hydro Distribution Inc. (MHDI) are pursuing a merger of their two utilities along with RHHI.

If implemented, the merger of the three utilities would result in the creation of the 3rd largest local distribution company in the province, delivering electrical power to more than 190,000 residential and business customers.

"The rationale behind our merger discussions is a strong belief that it will ultimately benefit all stakeholders including the consumers in each of the three municipalities," said Vaughan Mayor Michael DiBiase.

"By combining the customer, asset and skill bases of the three utilities, this partnership enables us to realize economies of scale and provide consumers with more efficient service," commented Markham Mayor Donald Cousens.

Discussions on how to maximize efficiencies among the three utilities began last year, following Hydro Vaughan and Markham HydroÂ’s joint purchase of Richmond Hill Hydro. The Ontario governmentÂ’s announcement in March of a transfer tax holiday for utilities considering an amalgamation, removed a key financial impediment to a merger. The two utilities set up a joint steering committee to investigate all options and provide recommendations to each of their Boards. KPMG LLP was hired to facilitate the process.

If the remaining issues are successfully dealt with, HVDI and MHDI expect that the transaction will be completed some time in the second or third quarter of 2004. The final agreement is subject to both the approval of HVDIÂ’s and MHDIÂ’s Board of Directors and that of their respective shareholders - the City of Vaughan and the Town of Markham. Further, the merger requires the approval of the Ontario Energy Board.

Public consultation sessions will be scheduled for customers, residents and the general public to get additional information and provide comments on the merger.

Hydro Vaughan Distribution Inc. and Markham Hydro Distribution Inc. are incorporated companies owned by the City of Vaughan and the Town of Markham respectively. Each utility has 50 percent ownership of Richmond Hill Hydro Inc.

Related News

new daimler electric vehicles

Daimler Details Gigantic Scope of Its Electrification Plan

BERLIN - Throughout 2018, we all witnessed the unprecedented volume of promises for a better future made by the giants of the auto industry. All say they've committed billions so that by the middle of the next decade combustion engines will be on their way out.

The most active of all companies when talking about promises is Volkswagen, which time and time again has said it will do this or that and completely change the meaning of car in the coming years. But there are other planning the same thing, possibly with even vaster resources.

Planning to end the year on a…

READ MORE
bucket truck workers

Texas utilities struggle to restore power as Harvey hampers progress

READ MORE

BOE Says UK Energy Price Guarantee is Key for Next Rates Call

READ MORE

Abengoa, Acciona to start work on 110MW Cerro Dominador CSP plant in Chile

READ MORE

fuel cell

New fuel cell concept brings biological design to better electricity generation

READ MORE