Cambridge, North Dumfries and Brantford Councils Approve Energy Merger

Cambridge, North Dumfries and Brantford, ON (August 30, 2021) - Councils for the City of Cambridge, the Township of North Dumfries, and the City of Brantford each voted in favour of a merger between Energy+Inc. and Brantford Power Inc. during special council meetings held today.

This decision follows a comprehensive merger analysis and public consultation process. An application will now be submitted to the Ontario Energy Board (OEB) 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% municipally-owned (City of Cambridge 54.3%, City of Brantford 41%, and Township of North Dumfries 4.7%) 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 7^th 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.

QUOTES

“I am very encouraged by the outcome of this long and comprehensive review process. Residents in all three communities who will benefit from the newly formed partnership should be rest assured that this merger was very thoughtfully considered by all parties involved, and I’m confident the OEB will come to the same conclusion. I also want to take this opportunity to thank my fellow Mayors, all those who contributed input to the public engagement campaign, and all staff who worked so hard on this initiative over the last eighteen months, resulting in this very positive development.”
– City of Brantford Mayor Kevin Davis

“The Board of Directors and the Management team are pleased with the Shareholder’s decision to move forward with the merger of Brantford Power and Energy+ to create a stronger municipally owned and locally influenced energy company that will be better positioned to be a strategic contributor to the long-term success of the City of Brantford. The Board, which is appointed by the Shareholder, is comprised of electricity sector experts and local business professionals who believe that Brantford Power is an excellent utility. However, it is the responsibility of the Directors to look beyond the utility’s legacy record and make the necessary moves to grow and position a new company to serve all of Brantford in the future. “
- Scott Saint, Chair, Board of Directors, Brantford Energy Corporation

“This is an exciting opportunity and good fit. Energy needs and customer service expectations are evolving and growing at a rapid pace. I believe this will provide a more robust energy service based by combining best practices from each utility as well as rate stability for our residents. The strong dividends will continue to be used to invest in key municipal services.” - City of Cambridge Mayor Kathryn McGarry

“The Township welcomes the merger as this transaction will strengthen the presence of local service delivery of hydro-electrcity to our respective communities. We know that the energy field is evolving and this merger will assist in responding better to this transition while still maintaining rate stability for our residents and businesses going forward.” - Township of North Dumfries Mayor Sue Foxton

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

An 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 (MAADs) application with the Ontario Energy Board.

Background

June 24, 2021 – News Release
Oct 8, 2020 – News Release
Oct 1, 2020 - News Release

PRIMARY MEDIA CONTACTS:

City of Brantford
Maria Visocchi
mvisocchi@brantford.ca

City of Cambridge
Susanne Hiller
hillers@cambridge.ca

Township of North Dumfries
Andrew McNeely
amcneely@northdumfries.ca