Buying Into An LDC Merger, But Who Are the Buyers

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Ontario’s electricity rate payers are currently served by 77 regulated local distribution companies and the question of whether this number should be reduced is high on the political agenda.

The Distribution Sector Review Panel commissioned by the provincial government this past spring has released its recommendations, and foremost among them is the consolidation of the current network into 8 to 12 regional distributors through mergers; all within two years of the government adopting the Panel’s recommendations. Legislated or not, any merger will require significant buy-in from numerous invested and interested parties.

Click on the link to the right to download a full report where the MNP Energy & Utilities Team shares its observations on how utilities and their shareholders can improve their chances of winning merger approval by seeing beyond the business case.