Clinton Power Corporation and Erie Thames Power Corporation sign letter of intent for possible merger



    INGERSOLL/CLINTON, ON, Oct. 22 /CNW/ - Clinton Power Corporation, an
electricity distribution company serving the Town of Clinton within the
Municipality of Central Huron, and Erie Thames Power Corporation, a
diversified energy distribution and services company, have signed a Letter of
Intent (LOI) to explore a merger of the two companies.
    The non-binding LOI sets out the process and conditions that could lead
to a new entity where Clinton Power would share in the management and
operation of the Erie Thames Power Group of Companies. In the coming months,
the parties will conduct their respective due diligence and work to negotiate
a definitive merger agreement. The proposed agreement will then undergo an
evaluation and approval process by the respective shareholders and Municipal
Councils.
    "We believe that this merger would be a sound investment of the capital
that our residents have contributed for many years" said Richard Harding,
President of Clinton Power Corporation, "The business and strategic plans of
Erie Thames Power echoes that of Clinton Power in that there is a particular
focus on the "hometown" level of care and service. We are confident that our
customers would continue to receive the personal touch that this utility has
prided itself on offering for many, many years."
    Bert Dykstra, Chairman of Clinton Power Corporation, stated, "That the
merger would create opportunities for our utility resulting in savings
achieved through economies of scale. Maintaining the status quo is becoming
more challenging due to further regulation and the best way for us to reduce
impacts for our customers and shareholder is to consider options such as the
one presented by Erie Thames Power."
    "We are excited at the prospect of working with another forward looking
municipal shareholder to create a single, efficient, electricity distribution
company." said Jeff Pettit, President and CEO of Erie Thames Power, "I believe
that if this partnership is achieved, it will further reinforce the advantages
that utility consolidation offers and provide a broader platform to continue
providing high quality, community focused services to existing and new
customers.
    If all parties reach an agreement, the merger will result in a single
distribution company providing electricity service to over 15,000 business and
residential customers in 12 communities and 3 counties in Southwestern
Ontario.





For further information:

For further information: Jeff Pettit, President & CEO, Erie Thames
Power, (519) 485-1820 ext 226; Richard Harding, President and CEO, Clinton
Power Corporation, (519) 482-3997 ext 222

Organization Profile

ERIE THAMES POWER CORPORATION

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CLINTON POWER CORPORATION

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