Guelph Hydro Supports New Report Recommendations

Web posted on December 19, 2012

(GUELPH, ON) December 19, 2012 – Guelph Hydro Inc., named Large Company of the Year by the Ontario Energy Association in 2011, supports the recommendations presented last week by the Ontario Electricity Distribution Sector Review Panel in their report entitled: Renewing Ontario's Electricity Distribution Sector: Putting the Consumer First.

In preparing their report, the Review Panel met with a wide variety of stakeholders to explore options to improve efficiencies in the sector with the aim of reducing the cost of electricity distribution for consumers.

The report concludes that reducing 73 licensed electricity distribution companies operating in Ontario to 8 to 12 large regional distributors within the next two years will result in an enhanced customer focus and reduced costs realized through economies of scale, elimination of duplication, lower borrowing costs and better use of capital.

"It is clear the industry has to change," says Barry Chuddy, Chief Executive Officer of Guelph Hydro Inc. "Maintaining the status quo in the electricity industry is not an option if we want to remain economically competitive and meet the needs of tomorrow's customers. We need to work together to redesign the electricity distribution system in Ontario to adapt to rapidly advancing technologies, changing customer expectations and increasing requirements for capital investment in the electricity distribution network."

The report recommends that any new regional distribution companies formed in southern Ontario should have a minimum of 400,000 customers. Guelph Hydro Electric Systems Inc. currently serves 52,000 customers in Guelph and Rockwood.

"We believe that merging small, local electricity distribution companies into larger, more efficient regional operations will be good for Guelph Hydro, good for the City of Guelph and, more importantly, good for rate payers," says Chuddy. "As a company focused on sustainability, with a reputation for forward thinking and innovation, we applaud the Distribution Sector Review Panel for framing a vision for the industry characterized by more efficient utilities, a stronger capital base and a smart grid serving smart customers in smart homes."

About Guelph Hydro Inc.
Wholly owned by Guelph Municipal Holdings Inc. which is, in turn, 100 per cent owned by the City of Guelph, Guelph Hydro Inc. is the holding company for Guelph Hydro Electric Systems Inc., the local electricity distribution company serving 52,000 customers in Guelph and Rockwood, Ontario, Canada, and for Envida Community Energy Inc., an alternative energy company, also located in Guelph.

Guelph Hydro Inc., named Large Company of the Year by the Ontario Energy Association in 2011 and awarded the Environmental Stewardship award by the Guelph Chamber of Commerce in 2012, is helping to create a reliable, diversified and sustainable energy supply to ensure the long-term competitiveness and prosperity of the communities it serves. The company is actively developing sustainable energy projects as a key implementer of the City of Guelph's internationally renowned Community Energy Initiative.

Links will open in a new browser window.
External sites are not endorsed by The Fountain Pen.