The Strategies and Options Committee (SOC)-the Council-appointed committee struck to evaluate opportunities and propose a course of action for the future of Guelph Hydro-is recommending City Council authorize a closer look at either selling or merging the electricity distribution company within the parameters of established decision-making criteria.
The recommendation comes in a report of the SOC to Guelph City Council as sole shareholder of Guelph Hydro, and after four months of initial exploratory review of four options: buy, sell, merge, and maintain full ownership.
The Committee's work is taking place in phases, with each phase depending on the results of the previous phase and City Council approval. The Committee is currently in Phase 1, which includes:
- consulting with stakeholders;
- investigating transaction options and approach; and
- reporting to Council on recommended options and seeking Council direction on next steps.
Evaluating specific transactions is not part of phase 1. With Council's approval, the SOC will begin exploring potential transactions to compare the sale and merger options against maintaining full ownership. In doing so, it would look at whether a sale or merger could satisfy the agreed-upon decision-making criteria while taking community priorities into account.
"A tremendous amount of research goes into this recommendation," says Derrick Thomson, co-Chair of the five member SOC. "When we apply the criteria which were validated through consultation with the community to the four options, we see that selling or merging with another local distribution company may hold the most promise for Guelph Hydro ratepayers, the community as a whole, and the City as shareholder."
The community is encouraged to join the conversation by visiting tomorrow.ca or by delegating before the shareholder on February 15. Delegates are required to register by 10 a.m. February 10 and can do so with our online form. Interested delegates can also e-mail email@example.com or call 519-837-5603 or TTY 519-826-9771.
Exploring the future of Guelph Hydro is consistent with the City's ongoing commitment to making sure residents get the best possible value from City assets.