Newmarket could sell or merge its namesake electric utility Newmarket-Tay Power Distribution.
Both the Town of Newmarket and Tay Township announced they would be exploring the move because the province is amending regulations to eliminate tax obligations arising from a sale.
The municipalities said this process would take several months and any move would be pursued only “if it benefits our communities, customers and NT Power’s employees.”
Newmarket Mayor John Taylor said utility demand in the coming decades will be complex, with climate change being a major challenge.
“We look forward to carefully evaluating whether our communities and NT Power customers would benefit from enhanced resources which a merger or sale could offer,” Taylor said in a news release. “The ultimate goal is to ensure we have the infrastructure to deliver affordable, reliable energy to our residents and local businesses, not only for the next 10 years but for the next 50 years.”
Newmarket’s utility company has a history of mergers. Newmarket Hydro was incorporated and began operations in 2000 before merging with Tay Hydro in 2007 to form NT Power. NT Power then again merged to take on the Midland Power Utility Corporation in September 2018.
The municipalities said the landscape of electricity demand is changing rapidly.
“As energy needs, demands, and service expectations in our communities continue to rapidly evolve and grow, our shareholders and the board recognize the pressure to deliver safe and reliable energy to our customers while keeping distribution rates affordable and our infrastructure up to date,” NT Power board chair David Charleson said in a news release.
The municipalities said during this “exploratory process” there will be a focus on ensuring key priorities are met, including competitive rates, improved reliability, customer experience, job protection, maintaining offices and a significant return on investment.
