The proposal to merge Enersource, Horizon Utilities and PowerStream has been submitted to the Ontario Energy Board for consideration. Shareholders are looking to merge the three electrical utilities and subsequently purchase the assets of Hydro One Brampton from the Ontario government.
The regulatory approval application — known as MAADs (Mergers, Acquisitions, Amalgamations and Divestitures) — was submitted by Enersource (serving the city of Mississauga), Horizon Utilities (serving the cities of Hamilton and St. Catharines), and PowerStream (serving the cities of Barrie, Markham and Vaughan). The merger of these utilities also includes a legal agreement to jointly purchase the assets of Hydro One Brampton from the Ontario government. It is anticipated that the approval process will take about six months.
Should the transaction be approved, Enersource, Horizon Utilities, Hydro One Brampton and PowerStream would consolidate to become the second largest municipally-owned electrical utility in North America (based on number of customers), serving close to one million customers in the Greater Golden Horseshoe Area.
On April 16, 2015, Enersource, Horizon Utilities, Hydro One Brampton and PowerStream announced their intention to work together to form a new utility that would serve almost a million customers in York Region, Simcoe County, Peel Region, Hamilton and St. Catharines.
Legal agreements associated with the transaction were signed late last month, signaling the completion of negotiations between the shareholders of Enersource (city of Mississauga and Borealis), Horizon Utilities (cities of Hamilton and St. Catharines) and PowerStream (cities of Barrie, Markham and Vaughan).
Enersource, Horizon Utilities and PowerStream are looking to merge and subsequently purchase the assets of Hydro One Brampton from the Ontario government.
Shareholders have now submitted a MAADs application to the OEB for regulatory approval for both the merger and acquisition. This approval process is estimated to take about six months.
The transaction will create one large utility company that is able to better serve customers for both regulated and unregulated services. This includes a corporate holding company and head office, based in Mississauga (at what is now the Enersource Derry Rd. location), a regulated utility company based in Hamilton (at what is now the Horizon Utilities John St. location), and a sustainability and innovation company based in Vaughan (at what is now the PowerStream Cityview Blvd. location). The regulated company will also retain utility operations centres in Barrie, Brampton, Hamilton, Markham, Mississauga and St. Catharines.
The appointment of the board of directors, CEO, other senior executives, the locations of job functions and other key developments will be announced in the coming months, pending OEB approval of the MAADs application.