THUNDER BAY, ON, Oct. 21, 2016 /CNW/ - Today, a Memorandum of Understanding (MOU) between Thunder Bay Hydro Electricity Distribution Inc. (Thunder Bay Hydro) and Kenora Hydro Electric Corporation Ltd. (Kenora Hydro) has been signed to authorize the exploration of a merger between the two utilities.
"The current technological and regulatory environment offers both opportunities for and challenges to local electricity distribution companies that might be better addressed through an integration of resources," says Dave Sinclair, President and CEO of Kenora Hydro. "Our two utilities have already worked together in areas such as conservation, back office support and the acquisition of Smart Meter Technology. We share common values and have agreed on some vital common objectives as we explore the possibility of a merger."
"A number of Ontario LDC's are currently exploring or undertaking consolidation in order to achieve economies of scale and enhance their capability to serve customers in an industry that continues to become more complex," points out Robert Mace, President and CEO of Thunder Bay Hydro. "As this complexity continues, larger, better resourced utilities will be better positioned to effectively and efficiently meet the needs of our customers."
The two utilities will now begin a process of analyzing the potential advantages and feasibility of how their customers, municipal shareholders and other stakeholders might benefit through such a merger. This analysis will include consultation with customers and shareholders in both Kenora and Thunder Bay.
A copy of the MOU will be made available on the websites of both utilities.
Ultimately any recommendation resulting from this analysis to merge the utilities will require the approval of both the Corporation of the City of Kenora and the Corporation of the City of Thunder Bay, who are the municipal shareholders of each company.
Kenora Hydro has 14 employees who are dedicated to the delivery of electricity to its 5,600 customers in the City of Kenora, Ontario. Thunder Bay Hydro has 130 employees who service electrical distribution to over 50,000 customers in the City of Thunder Bay.
Both Local Distribution Companies are located in Northwestern Ontario and are owned by their respective municipalities.
SOURCE Thunder Bay Hydro
Image with caption: "Kenora Hydro has 14 employees who are dedicated to the delivery of electricity to its 5,600 customers in the City of Kenora, Ontario. (CNW Group/Thunder Bay Hydro)". Image available at: http://photos.newswire.ca/images/download/20161021_C2659_PHOTO_EN_801463.jpg
Image with caption: "Thunder Bay Hydro has 130 employees who service electrical distribution to over 50,000 customers in the City of Thunder Bay. (CNW Group/Thunder Bay Hydro)". Image available at: http://photos.newswire.ca/images/download/20161021_C2659_PHOTO_EN_801465.jpg
For further information: Thunder Bay Hydro: Eileen Dias, Communications and Events Coordinator, Thunder Bay Hydro, (807) 343-1141; Kenora Hydro: Dave Sinclair, President and CEO, Kenora Hydro Electric Corporation Ltd., (807) 467-2075