Editorials
September 18, 2008 12:10 AM
Short of saying Markham should leave well enough alone when it comes to the successful hydro distribution company it co-owns with the City of Vaughan, certainly one could argue more time should be taken to let people know what may happen to the company that distributes power and sends the bills in Markham, Vaughan, Richmond Hill and Aurora.
PowerStream’s owners have entered into talks with Barrie Hydro to merge the two companies.
From the Markham-Vaughan perspective, it’s a no brainer. They say the arrangement has been a boon for their coffers.
The deal, which was on the verge of being approved Monday by Barrie council but was postponed, would make the new entity Ontario’s third-largest local distribution company.
The new entity would save $5 million a year in operating costs, primarily due to reduced need in hiring and purchasing.
It would lower rates by 5 to 6.5 per cent, a consultant suggested, although there are no guarantees these rate cuts would ever happen.
But is this merger what the people of Markham and Vaughan really want?
In Barrie, at least, the plan has been questioned. Critics have suggested it is being rushed. Officials have been encouraged by the Ontario Energy Board to merge their utilities and will receive a tax break to do so if they can accomplish this before mid-October.
They’ve also questioned whether or not the merger would bring an improvement in service, especially from some of the smaller towns served by Barrie Hydro now lamenting that they ever gave up their own local utilities.
On the proposed PowerStream board, Barrie (pop. 130,000) would have three seats, while Markham (pop. 300,000) would have four and Vaughan (pop. 240,000) six.
“We will be taking a less percentage of the new merged company because it’s in the best interest of our stakeholders and your stakeholders,” Markham Mayor Frank Scarpitti said at a meeting in Barrie. Is “taking a less percentage” in the best interest of Markhamites, Vaughanites or customers in Richmond Hill and Aurora?
Mr. Scarpitti also pointed out PowerStream has good working relationships with municipal departments, including Markham’s energy conservation office and has a tradition of supporting community events and fundraisers.
Would this good service and connection with the community be lost in a merger?
The rush with which this deal may go through and an agreement to keep exact details quiet, leave too many questions unanswered.