The provincial hydro scene is evolving and it’s time for the City of Guelph to look at its options.
The city held an open house on Tuesday to provide the public with an opportunity to get educated on the options facing Guelph Hydro and provide input on those options.
“The industry landscape is changing,” said Pankaj Sardana, CEO of Guelph Hydro in an interview at the well-attended open house.
Sardana said the province, through the Ontario Energy Board, isn’t pressuring municipalities to merge, but there is an “impetus” for mergers, particularly for smaller utilities.
Several have taken place in the recent past and several government studies have recommended mergers.
In 1996, there were 307 separate electricity utilities in the province. Today there are 70.
One even recommended the province mandate them, which it has not done.
“There are a lot of mergers around us . . . and the pace of technological change is on us in this sector. We are on the cusp of some major technological breakthroughs in this industry,” Sardana said.
“It’s time now to examine all of that. Do we stay this size or do we become bigger? How do we take advantage of all this technological change?”
Guelph Hydro is a separate corporation entirely owned by the City of Guelph.
For the past several years, it has provided a dividend back to the city, its sole shareholder. In 2016, that dividend was $1.5 million.
The community input gathered this week will be part of the information that comes to City Council who will then decide whether to maintain the status quo or look at other options.
Those options are:
- maintain full ownership.
- buy other electricity utilities.
- sell Guelph Hydro to a public or private organization.
- merge with other utilities.
“All of them have their positives and negatives. And let’s be fair, there are also benefits to doing nothing right now and waiting, exploring and being patient,” Sardana said.
If changes are endorsed, a city committee will proceed in specific research and consultation on options and make a recommendation to council on which one to pursue.
A council decision on which option or options to take are expected by the middle of this year and the change(s) finalized by the end of the year.
The Ontario Energy Board would have to approve any changes.
The process is currently being guided by a Strategy and Options Committee formed by the city. It includes Sardana, city CAO Derrick Thomson, Bob Bell and community members Mark Goldberg and Richard Puccini.
An open house was also held in Rockwood on Monday. Guelph Hydro supplies Guelph-Eramosa Township with its electricity.
More information on the positives and benefits to each option, and the opportunity to ask questions and provide input, can be found at www.energizingtomorrow.ca.
