Merger proposed for Kitchener-Wilmot Hydro and Waterloo North Hydro

A merger has been proposed between Kitchener-Wilmot Hydro and Waterloo North Hydro.

Officials made the announcement Friday morning. A possible merger would impact customers in Kitchener, Waterloo, Wellesley, Wilmot and Woolwich.

A joint press release from the utilities said the move would allow them "to modernize and to adapt to significant changes in Ontario's electricity sector."

"The combined utility will have more resources to invest in new technologies that  benefit customers, such as managing smart home and energy data, automated restoration of power outages, microgrids and local renewable generation," the release said.

Jim Phillips, chair of the Kitchener-Power Corporation, said in the release the collaboration would be a "natural merger" that would be a "win-win-win scenario for customers, municipal shareholders and employees."

The release said layoffs are not anticipated because of the merger as there are vacancies at both utility companies and some employees are preparing to retire.

Public consultations are expected to take place during the month of October.

The merger needs to be approved by the five municipal councils and the Ontario Energy Board.

Local councils are expected to make a final decision in December of this year before the proposal is forwarded to the energy board. It's anticipated the energy board would then make a decision in the later part of 2022.

This proposed merger follows a recent decision by the cities of Cambridge and Brantford and the Township of North Dumfries to merge their two hydro companies, Energy+Inc. and Brantford Power Inc. 

That application has been submitted to the energy board for approval. 

As part of the approval process, the board does a "no harm test" to make sure any merger is in the best interest of ratepayers.