Cambridge and North Dumfries Hydro buys Brant County Power

CND-BCP Utility Merger receives Ontario Energy Board approval, enabling share purchase, licence amendment, and distribution consolidation, with cost savings, operational efficiencies, stable rates, and a 20% customer increase for Cambridge and North Dumfries Hydro.

The sale of Brant County Power Inc. BCP to Cambridge and North Dumfries Hydro Inc. CND was approved on October 30th, when the Ontario Energy Board OEB issued its Decision and Order, endorsing the purchase to proceed. The transaction is expected to close on November 28, 2014.

“We are pleased that, after a public and detailed review process, the OEB issued a favorable decision in support of the joining together of the two utilities,” said Ian Miles, President & CEO of Cambridge and North Dumfries Hydro Inc. Cambridge and North Dumfries Hydro Inc. and Brant County Power jointly filed applications to the OEB in June 2014, similar to the Norfolk Power sale process undertaken elsewhere in Ontario. “The OEB approval includes the sale of all issued and outstanding shares of BCP to CND. CND will amend its distribution licence to include BCP’s service area and BCP’s distribution licence will be cancelled.”

As the electricity industry’s regulator, the OEB has a mandate, reflected in its distribution rate decision to protect the interests of electricity consumers and to be guided by the “no harm” test. The “no harm” test involved careful and thorough consideration of all proposed transactions, as seen in the Barrie Hydro merger review process, and the effect on the interests of consumers with respect to prices and the adequacy, reliability and quality of electricity service.

In issuing its decision, the OEB board staff stated that, “Cambridge has provided a well–delineated account of where it expects to achieve cost savings and operational efficiencies through the proposed transaction and an outline of expected capital expenditure savings”. OEB concluded that the “no harm” test had been met and approved the application, a conclusion consistent with its combined T&D rates decision approach to evaluating impacts.

When completed, the purchase of Brant County Power Inc. will add approximately 10,000 customers, comparable to the Peterborough Distribution sale that drove similar growth, a 20 percent increase to Cambridge and North Dumfries Hydro Inc.’s current 52,500 customer base.

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