The Council replies: Letters to the editor
Hydro merger isn't in city's best interest

Norah Chaloner
The Guelph Mercury
July 12, 2008

Dear Editor - Having attended the two recent presentations on the proposed merger of Guelph Hydro and Horizon Utilities Corp. on behalf of Council of Canadians, I am very concerned that this is not in Guelph's best interest.

Nothing was presented on the downside of such an important, irreversible action. In particular, the following:

Reference to "possible 20 per cent savings" is misleading. Guelph Hydro only controls its distribution costs, which represent only 20 per cent of the total electricity bill. Therefore, 20 per cent of 20 per cent means a possible four per cent savings on the residential customer bill.

Horizon's industrial rates are higher than Guelph's. Will this make us less attractive to new industries?

Hamilton and St. Catharines have infrastructure that is old and rundown and needs replacing. It is likely that Horizon will have to borrow heavily to make necessary upgrades. We will share this burdensome liability for a very, long time.

Regarding "economies of scale," Guelph Hydro's own submission to the Ontario Energy Board in 2004 stated that no conclusive evidence exists to support the notion that bigger is better or that it leads to lower costs.

The provincial government says they will forgive the tax on the merger because they are pushing to reduce the number of utilities. It is clearly easier for them to deal with fewer utilities. But is it in Guelph's best interest? (If a merger is inevitable, why not Waterloo or Cambridge?)

Our utility has served us well for more than 100 years. Being controlled locally has many advantages. Local operations mean better service and quicker emergency response times.

The residents of Guelph own our well run utility. The board of directors don't own it. City councillors are its stewards. They must weigh their decision carefully because once our utility is gone, we can never get it back.

Our minority voice in Horizon Utilities will mean that corporate headquarters in Hamilton will decide the service that Guelph receives.

Horizon's plan to greatly increase the number of customers it serves will diminish any influence Guelph will have.

For more information, please attend the meetings at city hall on Monday at 7 p.m. for information, and July 21 at 7 p.m. to have your say.

-- Norah Chaloner, co-chair, Council of Canadians, Guelph Chapter.