A Barrie councillor asked me whether I was supportive of the merger deal between Barrie Hydro and PowerStream, Ontario’s third-largest local distribution company and owned by Markham and Vaughan.
I told him I didn’t know enough to decide.
That was three weeks, two public meetings, numerous phone calls and e-mail messages ago.
And I still don’t know enough to say whether I support the merger.
There are several key facts that are missing. Some Barrie councillors have tried to bring these to light – like when and why did the utility board turn down the merger, how did it get to Barrie council despite that rejection, and more recently, when was an exclusivity clause extended by hydro staff, especially in light of critical public opinion?
Most of the public criticism, too, has centred on unanswered questions – like who were the nine companies assessed, on what criteria were they examined, how did they rank and why would the deal with PowerStream be the best deal?
These remain unanswered.
Perhaps the deal with PowerStream is so good it shouldn’t be turned down.
We, however, do not know that. We do not know the history or the rationale; all we have seen is a sales pitch.
Further, the condescending tone of answers to councillors who have asked critical questions highlights concerns about the quality of investigative work and the motivation behind the deal. Semantics and political ploys to not answer questions throw suspicion on the deal, whether merited or not.
The context is Ontario’s energy sector is changing and mergers among municipally-owned utilities allow for more investment in specially trained staff, smart meters, digital grids and conservation programs. Mergers build better companies.
But the question remains: is this the best deal for Barrie Hydro, its shareholder (the city) and its customers?
I don’t know, even after doggedly pursuing answers to key questions.
If this deal is a good deal, city staff and Barrie Hydro officials shouldn’t be afraid to be open about it. The deal will sell itself.