Shareholders approve sale of Westario Power to ERTH Corporation

All nine of Westario Power’s shareholders have voted to accept a purchase offer from ERTH Corporation.

In addition to Fortis Inc., Westario’s municipal shareholders include: Kincardine, Huron-Kinloss, Brockton, Hanover, Minto, North Huron, Saugeen Shores and South Bruce.

The closing of the transaction must still be approved by the Ontario Energy Board (OEB). In assessing the transaction, the OEB applies a “no-harm” test. This test assesses any transaction to ensure the proposed changes will not result in higher costs or reduced service quality for consumers.

Should the OEB approve the sale, it will:
 

• Protect the jobs of Westario employees
• Maintain customer electricity rates and only increase at the rate of inflation
• Maintain Westario’s high standard of service for response times and restoring service outages
• Maintain the administration and operations facility as the central operations facility for the Westario service territory
• Provide a 24-hour emergency remote control room that responds to power outages and electrical emergencies at any time
• Continue partnerships and collaborations with local community charities and partners

ERTH will establish an advisory committee for a one-year period, following the closing of the proposed transaction, to provide ongoing communication between Westario and ERTH. The advisory committee will meet to review the impacts and implementation of the sale to ensure Westario communities are continuing to receive excellent service.

Ontario’s Independent Electricity System Operator estimates the demand for electricity will increase by 75 per cent over the next 25 years. The demand is being driven by the electrification of manufacturing, Artificial Intelligence (AI) data centres, electric vehicles and other electric devices in a growing population.

The Westario Power board’s decision to sell the company is part of a broader provincial trend to consolidate small utilities to ensure they can meet rising electricity demands, ensure stable rates and respond quickly to power outages amid unpredictable weather in a changing climate.

For Westario Power customers, there is very little change in the near future:
 

• Westario customers will continue to receive bills from Westario Power.
• Rates will only increase at the rate of inflation as they would have under Westario Power.
• Westario customers will continue to receive the same high standards of service for response times and restoring outages.
• Both line and office staff will be maintained along with the administration office and operations facility.
• ERTH Power is in the process of expanding its remote, control room with the goal of providing 24/7 remote emergency service across the region to shorten outages when they happen.
• Customers will receive regular updates as the transaction progresses.

Westario Power provides safe, reliable delivery of electricity to 24,500 customers and maintains the substations within 746 kilometres of distribution lines at a high rate of efficiency. It is, and will continue to be community-owned, supplying electricity to Kincardine, Ripley, Lucknow, Port Elgin, Hanover, Southampton, Walkerton, Wingham, Palmerston, Harriston, Mildmay, Teeswater, Clifford, Neustadt, and Elmwood.

ERTH Corporation is a municipal holding company jointly owned by nine Ontario municipalities. Its regulated subsidiary, ERTH Power Corporation, distributes electricity to more than 25,000 customers across 15 communities in southwestern Ontario.

Through its non-regulated businesses, ERTH has become a leading provider of technology solutions, utility construction, lighting, and energy services for utilities, municipalities, and commercial and industrial clients throughout North America. If approved, this purchase will expand ERTH Power’s service territory to 30 communities across seven counties.