Kitchener, Waterloo, Wellesley, Wilmot and Woolwich have approved a Memorandum of Understanding (MOU) as a first step in the proposed merger of Kitchener-Wilmot Hydro and Waterloo North Hydro.
The approvals follow the Oct. 1 announcement that Kitchener Power Corporation and Waterloo North Hydro Holding Corporation are proposing a merger of the utilities.
“Our board welcomes the news that Waterloo North Hydro’s municipal shareholders, the councils of Waterloo, Woolwich, and Wellesley, have approved the Memorandum of Understanding supporting this proposed merger,” said David Petras, chair, Waterloo North Hydro Holding Corporation.
“We believe this is a good deal for the three municipalities and Waterloo North Hydro’s customers. This larger, locally-owned utility will have more resources to invest in technologies that benefit customers while helping our communities’ transition to a lower carbon economy. We look forward to hearing from customers and community members in the coming weeks.”
Now that all five participating municipal councils have approved the MOU, community engagement on the proposed merger can begin.
Kitchener-Wilmot Hydro and Waterloo North Hydro will host joint public information sessions on Oct. 19 at 3 p.m. and 7 p.m. Due to the COVID-19 pandemic, sessions will be held online along with access by telephone.
Following community engagement initiative, the five municipal councils are expected to make a final decision on the proposed merger in December 2021.
If approved, the merger application will be submitted thereafter to the Ontario Energy Board for regulatory approval, which is expected by the third quarter of 2022. The new company is expected to begin operations soon after regulatory approval.
“This is a win-win-win scenario for customers, municipal shareholders and employees. We’re excited to start our public engagement and receive feedback from community members of all five municipalities.” Jim Phillips, chair, Kitchener-Power Corporation, said in a statement.
