After debating the issue for hours and hearing from dozens of delegations, Guelph councillors decided to relinquish full control of their hydro future in the name of preserving lower electricity rates.
Councillors voted by a 10-3 margin to merge Guelph Hydro with Alectra, bringing an end to a year-long debate about the future of the utility.
“It’s the best thing for the citizens of Guelph,” Mayor Cam Guthrie said following the vote.
“We clearly cannot go it alone, so merging with Alectra … was the right thing to do.”
City officials have said that the impetus for the deal was preserving lower hydro rates than would be possible if Guelph Hydro remained on its own.
Similar thinking has led to a significant number of mergers and acquisitions among hydro utilities across the province in recent years.
Guelph Hydro was fully owned by a subsidiary of the city known as Guelph Municipal Holdings Inc. That subsidiary will now own 4.63 per cent of Alectra.
Alectra has said it plans to keep 70 of Guelph Hydro’s 130 employees in the city for at least 10 years, with 30 other employees being offered positions elsewhere.
The deal still requires approval from the Ontario Energy Board, which Guthrie says is likely about a year away from being a reality.
Alectra, which was created earlier this year, already handles electricity distribution for communities including Hamilton, Brampton and Mississauga.
