The following correspondence responds to a letter published in the local newspaper:
Dear Editor:
I am confused as to your headline for this letter, as Mr. Kata mentioned my comments on Conservation, but the bulk of his comments seem to have been triggered by my comment that Guelph Hydro,s distribution system is better engineered. Anyone who takes the time to investigate the OEB site will find that (based on 2006 performance data) the Guelph Hydro System has the second lowest incoming power loss of the 91 Distribution companies still operating in the Province. And the lowest is definitely not Horizon.
Mr. Kata then points out the considerable spending of money to upgrade the various systems that were merged into Horizon. If the systems were up to scratch there would have not been the need. Once the 2007 performance data is posted, we will have a better picture of what progress may been made.
Then he makes what I find to be an extremely upsetting statement, if the staff don’t like the new boss, they can find a new job. I hope that he is not speaking on behalf of Horizon when he says this. This comment does not reflect the employee attitudes of Guelph Hydro as I understand them, and I think the GH staff will find it disconcerting.
Council has an extremely important decision to make, one that will impact the City for a long, long time.
With that in mind, I hope that Council will do a couple of important things. First refer it to an appropriate committee for an in depth analysis and review. Secondly, insist that all options be put on the table and the pros and cons of each be properly laid out.
There are three options – keep it, seek a merger, or sell it. Two of these decisions are irreversible. Only the keep it option retains the possibility of future actions. In addition to obtaining independent consultant services to advise them, I am sure that Council can find several local residents who could provide solid input on this issue.
Council needs to determine how solid the merger benefits really are. I am shocked to read that the dividend can be “at least doubled” and that “customer rates will be mitigated –in a very substantial matter” I am still waiting for the reduction in rates promised 10 years ago by then Energy Minister Wilson and Premier Harris”. This one will be even more difficult given the current energy price situation.
The other point of concern is Horizon’s stated goal of growing up to one million customers. Past history has shown that the larger the Distribution Utility – the larger its distribution rates and its customer service goes downhill. You don’t believe me, talk to some Hydro1 customers.
Today Guelph may have 2 of 11, or 3 of 13 seats on the Board, but guess what will happen as Horizon acquires other utilities – yes Guelph’s influence will decrease. And last (for now) but not least who will appoint the “City” directors. After all as a corporation operating under the appropriate legislation (OBC), that is not guaranteed.
There are an awful lot of pitfalls for Council to avoid. DM