Guelph Hydro begins merger talks with Alectra

After one year of research and analysis, Guelph Mayor Cam Guthrie announced the city will begin merger negotiations between Guelph Hydro and Mississauga-based utility Alectra.

Guthrie made the announcement Wednesday afternoon during a news conference at City Hall with executives from Guelph Hydro and Alectra, along with city councillors and staff.

“It will keep customers’ rates low, it will maintain strong customer service, preserve local jobs, and invest in tomorrow’s energy solutions,” Guthrie said. “What the analysis clearly shows is that by merging with Alectra — a growing and innovative company — it is the perfect match for Guelph,”

Alectra was formed earlier this year with the merger of three local electrical utilities and serves nearly one million customers in the Greater Toronto Area. Guelph Hydro already serves about 55,000 customers in the city and Rockwood.

The city said the merger would help keep downward pressure on rates and increase annual dividends that could be invested back into the community.

With the merger, Alectra plans to open a Southwest Ontario Operations Hub at the site of Guelph Hydro’s current headquarters and a new Green Energy and Technology Centre.

“That local presence is staying (and) it will probably have opportunities for expansion,” Guthrie said.

Alectra President CEO Brian Bentz echoed Guthrie’s promise.

“We need them,” he said when asked what this means for Guelph Hydro’s 130 employees. “We need their commitment, we need their ideas, we need their leadership, we need all of the service that they have provided to the City of Guelph for such a long period of time.”

There will be public consultations before city council votes on the merge on Dec. 13.

WATCH: Guelph Mayor Cam Guthrie announced Wednesday that Guelph Hydro and Alectra will formally begin merger negotiations.