KITCHENER -- The local electricity distributors for Cambridge, North Dumfries, Brantford and Brant County are considering a potential merger transaction.

The Board of Directors of Brantford Energy Corporation and Cambridge and North Dumfries Energy Plus Inc., the holding companies for Brantford Power Inc. and Energy+ Inc., have endorsed a joint memorandum of understanding, according to a release sent out on Thursday by Energy+.

The City of Cambridge, Township of North Dumfries and the City of Brantford are the shareholders in the memorandum. They're now performing independent financial reviews and business analysis to explore consolidating the local electricity distribution companies -- Energy+ Inc. and Brantford Power Inc.

"The decision to explore the advantages and risks of a consolidation by all stakeholders is one step in a complex and lengthy journey that can take the better of a year or more," the news release said.

If the memorandum of understanding is signed, it would allow the companies to review a potential merger.