MARCH 1, 2017: Veridian Corporation, Whitby Hydro to Move Forward with Merger Evaluations, Oshawa PUC not to proceedContinue Reading
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Whitby Hydro has entered into a Memorandum of Understanding to explore the potential benefits of joining three electric utility and energy companies to achieve greater shareholder value and optimize services and value for our customers.
The proposed consolidation includes three municipally-owned energy companies, namely Veridian Corporation, Oshawa Power and Utilities Corporation, and Whitby Hydro Energy Corporation.
Together we would form the 4th largest municipally owned electricity utility in Ontario after the GTHA west merger, with more than 220,000 (TBC) customers in a growing area of the province.
This proposed consolidation would enable us to assure greater resilience and sustainability of our electricity distribution systems for the future, while achieving new synergies to benefit both our municipal shareholders and the residents and businesses we serve.
The consolidation would allow greater scale and an increased ability to provide customers with new innovative solutions to their energy needs in the future.
This proposed consolidation would allow us to find new efficiencies while leveraging the professionalism and talents of our dedicated employees.
We are currently planning for our second round of open houses. Once we have a date and location confirmed, we will update this site. We hope that you will be able to make it.
Note: Our team is sorting through all of your questions and comments that you provided at our open house. We want to ensure our answers are factual and informative so we ask for your patience as we work to get this site updated as soon as possible. Thank you for visiting.
For now, both are committed to continuing in the process. Both Veridian and Whitby see significant merits in the proposed merger. Our focus is on our customers and ensuring we can deliver savings through greater efficiencies and innovation. We further have confidence in the competitive strength that could be found in the combined company, due to the larger scale.
Business Expenses incurred to evaluate the potential merger have been fairly shared amongst the three parties and paid from retained corporate earnings. These business expenses have no impact on customer rates or planned shareholder dividends.
The original evaluations were based on the merging possibility of three entities with specific valuations and data. Now that Oshawa PUC has opted to not move forward, we will need to re-model that data. We should have a refreshed timeline available shortly.
Yes. Both Veridian and Whitby have confirmed that they will move forward with the next phase of merger review. They both remain committed to further due diligence and consultation with the communities and broader shareholders.
Each entity has to review and evaluate on what is best for their respective customers, shareholders and overall businesses. The evaluation process was meant to review all these elements before any formal agreement to merge was made. The review process did exactly what it was intended to do, to ensure all parties could deliver synergies to customers. For Oshawa PUC, the benefits did not align with those objectives and they choose to amicably withdraw. This type of outcome is not uncommon in merger reviews.
Like any merger, we need a full 360 degree view of all factors before we can move to the next step. We are currently in the final stages of assessment and will be able to provide more details shortly. Movement of the timeline by small margins is expected when there are considerable elements to be fully weighed and considered. We look forward to the next steps and remain committed to all aspects of community engagement including seeking feedback from all shareholders. All three companies involved remain optimistic about our ability to deliver synergies through our consolidation, to the benefit of our ratepayers.
Thank you for your comment/question. We are reviewing your question and will update the FAQ section of our website shortly. We'll do our best to reply to you directly in a timely manner.
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