NEWS RELEASE
CITY OF CAMBRIDGE
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Councils for the City of Cambridge, the Township of North Dumfries, and the City of Brantford voted in favour of a merger between Energy+Inc. and Brantford Power Inc. during special council meetings held earlier this evening.
This decision follows a comprehensive merger analysis and public consultation process. An application will now be submitted to the Ontario Energy Board for regulatory approval. The OEB process reviews many aspects of the merger, including a “No Harm Test”, that ensures the proposed merger is in the best interest of ratepayers. The merger would take place following OEB approval.
The new combined company will continue to be 100 per cent municipally-owned (City of Cambridge 54.3 per cent, City of Brantford 41 per cent, and Township of North Dumfries 4.7 per cent) The merger is expected to create many positive benefits for customers and communities, including:
· Stable and competitive distribution rates
· Continued presence in local communities for the long term, creating ongoing employment
· Greater capacity to focus on future growth and advancements in technology
· Enhanced opportunities for innovative service solutions for customers and local businesses
· Strengthened customer response, with 24/7 control room capabilities across entire service area
· Increased efficiencies; less duplication of services
· A larger entity is capable of withstanding significant changes in the economy (e.g. impact of COVID-19)
· Increased shareholder value, providing enhanced dividends for each community
Brantford Power and Energy+ have a strong long-standing relationship and often share equipment and personnel in times of emergency. Together, they co-own and maintain a transformer station on Powerline Road in Brantford and share space in Brantford Power’s Operations Centre in Brantford.
Energy+ and Brantford Power collectively employ about 200 people. The new combined energy company will service more than 109,000 residential and business customers and if OEB approved will become the 7th largest utility in Ontario, based on customer count. The municipal shareholders will continue to sit on the new company’s Board of Directors and have a strong voice in the governance of the new company.
Merger exploration timeline:
February 2020
Internal Steering Committee established by holding companies to review opportunities for a potential merger.
September 2020
Boards of Directors of holding companies, Brantford Energy Corporation and Cambridge and North Dumfries Energy Plus Inc., reviewed the merger opportunity and recommended municipal shareholders consider merger exploration discussions.
October 2020
Councils for the City of Cambridge and the Township of North Dumfries appointed a Shareholders Strategic Advisory Committee to review the recommendations to consider the merit of participating in merger exploration discussions. Council for the City of Brantford appointed a Brantford Energy Task Force to review the recommendations.
November 2020
The Council for the City of Cambridge voted to accept the Shareholders Strategic Advisory Committee’s recommendation to sign a joint Memorandum of Understanding (MOU) to explore a possible merger. The Council for the Township of North Dumfries voted to accept the Shareholders Strategic Advisory Committee’s recommendation to sign a joint MOU to explore a possible merger. City of Brantford accepted the Brantford Energy Task Force’s recommendation to sign a joint MOU to explore a possible merger.
December 2020
A MOU was signed by all municipalities, the City of Brantford, the City of Cambridge, the Township of North Dumfries, together with the holding companies Brantford Energy Corporation and Cambridge and North Dumfries Energy Plus Inc. The Memorandum of Understanding is a non-binding agreement for all parties and includes next steps relating to the merger exploration.
January to June 2021
The municipal shareholders each conducted comprehensive and independent due diligence reviews of financial, legal and business matters.
June to August 2021
Residents, businesses and stakeholders in the communities are invited to Ask a Question or comment on a potential merger through a comprehensive public engagement process.
August 30, 2021
The municipal shareholders, the City of Brantford, the City of Cambridge and the Township of North Dumfries pass motions to proceed with a merger. Shareholders’ Agreement, Merger Agreement and other legal documents are drafted and signed by municipal shareholders and the holding companies.
September 2021
File Mergers, Acquisitions, Amalgamations and Divestitures application with the Ontario Energy Board.
First Quarter 2022
Ontario Energy Board reviews Mergers, Acquisitions, Amalgamations and Divestitures (MAADs) application for the merger of Brantford Power and Energy+ Inc. Approval is required from the Ontario Energy Board to confirm that the potential merger is in the public interest.
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