More on the Guelph Hydro Merger

I urge you to vote “no” to the merger with Horizon Utilities. If you have any doubt, any hesitation that this merger will be beneficial to our city and its citizens, I urge you to vote “no”. Once the decision to merge is made, there is no going back to the days of independence.

Regarding “economies of scale,” mentioned as a plus by Karen Fabridge in the article in today’s Mercury, 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.

We are presently in control of the distribution of our energy. If we want to develop alternatives which are off the grid, we can decide to do so. Autonomy is precious in a world with diminishing resources.

One fallacy that has appeared in the press is that a merger is inevitable since it is being mandated by the Province. But this has been dispelled by provincial spokesperson Laurel Ostfield. When asked by Mercury reporters she stated that the Province is not pushing for mergers.”It’s up to municipalities. It has to be the right move for them,” she said. (Mercury, July 18, 2008)

The 20% savings to customers mentioned by Karen Farbridge and others 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.

Many citizens have expressed their concern over a merger with Hamilton and St. Catharines. Their infrastructure 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.

Then there is the issue of labor relations. Employees at Horizons have been in strike action as recently as this past July over issues that where not resolved at the time of past mergers three years ago. Do we want to inherit that mess?

This utility belongs to the City, hence, its citizens. We,as well as the employees of Guelph Hydro should be making this decision.

Please listen to our concerns. JA