THUNDER BAY -- As Thunder Bay Hydro continues to work with Kenora Hydro on a prospective merger of the two companies, lurking in the background is the possibility of other electrical utilities coming into the fold.
Almost exactly a year ago, Thunder Bay and Kenora Hydro signed a memorandum of understanding that kickstarted a study of the economies of scale and other benefits that a union would bring.
The Thunder Bay utility serves nearly 51,000 customers, while Kenora has a customer base of 5,600.
Officials have said that savings would accrue from having one billing system, one set of auditors, and one set of customer service staff, among other areas.
It's anticipated that there would be no impact on staffing in Thunder Bay, and that any downsizing of staff in Kenora would occur through attrition.
Thunder Bay Hydro President Robert Mace says the two parties are currently negotiating the agreements that would underpin a merger, prior to taking the proposed agreements to their respective city councils.
"We are striving to have something to present before the end of the year," Mace said in an interview with tbnewswatch.com on Monday.
Three other municipalities in the northwest still operate their own electrical utilities: Fort Frances, Sioux Lookout and Atikokan.
Mace said the MOU with Kenora precludes involving other parties until their own negotiations are finished, but he noted that in the past, utilities in the northwest "have discussed options going forward." He said that once Thunder Bay and Kenora complete a deal, more serious conversations involving the other three utilities are likely to begin.
Any electrical utility in the province also has the option of selling itself to Hydro One.
Mace pointed out, however, that "there's a lot of concern over Hydro One rates. It's no surprise that Thunder Bay Hydro and Kenora Hydro rates are significantly lower than Hydro One rates."
The other upside from a local merger, he said, is that a community still retains partial ownership and input into the operation of its electricity provider.
If the Thunder Bay and Kenora merger goes ahead, customers can expect to receive bills from a re-named utility.
Mace confirmed that the two parties "are doing work on that right now," but have nothing to make public at this point.
