Ontario Energy Board Approve Sale of Midland Power Utility Corporation
Newmarket Tay Power Distribution given OK to buy Midland Power for $27.7 Million
The Ontario Energy Board has approved the sale of Midland Power Utility Corporation. Newmarket-Tay Power Distribution Ltd. (NT Power) will purchase Midland Power Utility Corporation (MPUC) for $27.7 million, including a premium of $11.9 million.
“The new arrangement meets all of the requirements we set out to achieve, and then some.” said Midland Mayor Gord McKay. In a statement, McKay said ” 4the deal provides the people of Midland improved electricity distribution rates, guaranteed service levels, lasting job security for our MPUC workers, and economic development opportunities that will benefit our existing businesses and attract new businesses to the area.
“It is a good deal for Midland, Mayor Gord McKay”
In its submission to the OEB, NT Power said no jobs will be lost and although they anticipate an increase in distribution rates for Midland Power’s General Service customers when rates are harmonized, it will be “mitigated by applying the efficiencies and lower cost structures expected as a result of the proposed transaction.”
“This amalgamation will make us a more competitive utility, allow us to combine our resources to respond to customer needs, and create cost savings through the realization of efficiencies over time, said NT Power President Paul Ferguson in a statement.
The sale includes electricity distribution rate stability essentially in line with the rate of inflation for a period of 10 years. After that 10-year period, Midland distribution ratepayers will see rate harmonization with Newmarket-Tay rates.