Further to our special February feature “Distribution Under Debate,” APPrO has received a range of comments on potential LDC consolidation. One particularly interesting message was contained in the following letter to the editor:
“To the Editor,
Thank you for the balanced and accurate article on LDC consolidation in this February’s issue of IPPSO FACTO.
Guelph Hydro has gone on record with the fact that we are a fan of consolidation. We believe the move towards fewer LDCs in Ontario is inevitable and, most importantly, good for ratepayers. The issue that is undeniable is that there are cost savings to be had when companies merge, regardless of whether the LDCs involved are efficient now or not. All consolidation really means is that if your LDC is efficient now, you can expect it to be even more efficient if it consolidates.
While we have heard that Minister Chiarelli stated that his government will not make sector consolidations mandatory, the electricity industry has a lot of challenges ahead of it. In my mind, it is clear that maintaining the status quo is not an option if we are to remain economically competitive and have the ability to meet the needs of tomorrow’s customers.
Barry Chuddy, CEO, Guelph Hydro Inc. www.guelphhydro.com”