Kitchener-Waterloo

Merge, buy, stand alone? Waterloo North Hydro looks at ownership options

Waterloo North Hydro is exploring future ownership options as they look into whether they buy, merge or stand alone and is asking the public for input.
Earlier this year, councillors from Waterloo, Woolwich and Wellesley asked if it was the right time to look at ownership options for Waterloo North Hydro. (Waterloo North Hydro)

Earlier this year, councillors from Waterloo, Woolwich and Wellesley asked if this was the right time to look at ownership options for Waterloo North Hydro.

Waterloo North Hydro is owned by the City Waterloo, the Township of Woolwich and the Township of Wellesley.

The public electrical utility is exploring future options as they look into whether to buy, merge or stand alone. So it's now asking for the the public's opinion on the matter.

"The local distribution company — (LDC) — that sector has been in flux quite some time," Tony Iavarone, director of communications with the City of Waterloo, told CBC's The Morning Edition host Andrew Coppolino Monday.

"The province commissioned a blue-ribbon panel to look at the electricity sector and one of its key recommendations was fewer LDCs and that municipalities who own these companies at least consider looking at different options."

Neighbouring distribution companies in Guelph and London are also considering their options.  

Others, like the the former Cambridge and North Dumfries Hydro, bought Brant County Power to become Energy Plus in January 2016.

"We're seeing change occur in the sector," said Ivarone.

Merge, buy or stand alone?

At the start of discussions there was a fourth option: to sell Waterloo North Hydro. But councillors quickly decided instead to look into merger, acquisitions or continue to stand alone. Currently, they are not leaning one way or the other, said Ivarone. 

But what would it mean for Waterloo North Hydro if they decided to merge, buy or stand alone?

  • Stand alone: Waterloo North Hydro would continue to operate as it is now.  
  • Merge: Waterloo North Hydro would look for another LDC, either locally or one not too distant, and merge as an equal partner, said Ivarone.
  • Buy: Waterloo North Hydro would purchase outright another LDC.

Survey

The survey asks individuals what criteria are most important to them, such as reliability and rates.

Based on those answers, staff will look at ways to achieve those goals and which option might accomplish it best.

The community has until August 31 to fill out the survey.