TORONTO, April 25, 2002 — Union Energy Inc., a wholly owned subsidiary of EPCOR Utilities Inc., has reached an agreement to purchase a total of 395,000 electricity, natural gas and water heater customer contracts and rental agreements from Ontario Hydro Energy Inc.
The purchase will bring EPCOR’s total Ontario customer base to nearly 1.3 million and further solidify EPCOR’s position as one of the largest national providers of energy and energy related services.
“With this acquisition, Union Energy is acquiring an excellent platform upon which to base the Ontario energy business. We see tremendous synergies between Ontario Hydro Energy’s retail assets and Union Energy, and I believe our new customers will be pleased by Union Energy’s focus on innovation and superior customer service,” said Vaughn Goettler, President and CEO of Union Energy.
“This agreement is consistent with Hydro One’s strategy to focus on our core wires business,” said Eleanor Clitheroe, President and CEO of Hydro One Inc. “This focus on our core business will strengthen Hydro One as we continue towards our goal of becoming one of North America’s top electricity delivery companies. We will be working with Union Energy to ensure a seamless transition for the Ontario Hydro Energy customers,” she continued.
Union Energy, a subsidiary of EPCOR, currently provides service to more than 900,000 customers in Ontario, Manitoba, Alberta and British Columbia. A leader in the deregulated energy services sector, Union Energy rents water heaters, and sells, installs and services heating, ventilation and air conditioning equipment as well as provides financing for these systems. The company also retails natural gas and electricity in Ontario.
Don Lowry, President and CEO of EPCOR said, “Six months ago EPCOR was confident the acquisition of Union Energy would present good prospects for future growth. The purchase of Ontario Hydro Energy’s retail customer base complements Union Energy’s position in the Ontario market and is a major step toward securing a significant share of the energy market in Ontario.”
This transaction is subject to approval by the federal Competition Bureau.
EPCOR is one of Canada’s providers of energy and energy-related services and products. EPCOR owns and operates power plants, electrical transmission and distribution networks, builds and operates water and wastewater treatment facilities and infrastructure and provides power, water, natural gas, water heater rental and heating, ventilating and air conditioning services to its expanding customer base.
With over $4 billion in assets and a customer base of 1.6 million, EPCOR is headquartered in Edmonton, Alberta and has operations throughout Alberta, British Columbia, Manitoba, Ontario and the U.S. Pacific Northwest. More information about EPCOR can be found on their Website at www.epcor.ca
Hydro One Inc. is a holding company that operates through its subsidiaries in electricity transmission and distribution, and telecommunications businesses. More information can be found at www.HydroOne.com. Ontario Hydro Energy provides competitively priced energy, long distance and other home services.