Municipalities complete merger of Barrie Hydro-PowerStream

Utility is now the second largest local electricity distribution company in Ontario
BARRIE, MARKHAM & VAUGHAN, ON – The municipalities of Barrie, Markham and Vaughan have completed the closing of an agreement signed in October, merging their two electric utilities – Barrie Hydro Distribution Inc. and PowerStream Inc.

The merged entity, which will retain the PowerStream corporate name but will be co-branded “PowerStream Barrie Hydro Distribution” in the former Barrie Hydro service territory for the initial year, is now the second largest local electricity distribution company in the province, providing service to more than 310,000 residential and business customers in Simcoe County and York Region.

“This is a tremendous day for residents and businesses in the 11 communities that will now be served by this utility,” PowerStream’s Board Chair and City of Vaughan Councillor Peter Meffe proclaimed. “We’re confident the merger will benefit all hydro customers in the service territory by helping to reduce the upward pressure on customer distribution rates.” A business case analysis conducted by KPMG on the merger concluded that efficiencies realized through combining assets and achieving economies of scale would net annual savings in excess of $5 million which would favourably impact customer distribution rates going forward. The analysis also indicated that the merger would facilitate increases in dividends to shareholder municipalities.

“Proving customers with reliable and efficient service will continue to be a top priority for the company,” PowerStream’s Vice Chair and Markham Mayor Frank Scarpitti added. “I am confident that this merger will be a win-win situation for both customers and the municipal shareholders.”

As part of the merger agreement, PowerStream’s original10-member Board of Directors was expanded to accommodate representation from the City of Barrie. Councillors Lynn Strachan, Andrew Prince, and former Barrie Hydro Board member Ron Stevens, have now been added to the PowerStream Board of Directors. “The City of Barrie is thrilled to be a part of the utility’s new ownership group,” Strachan said.
“We are looking forward to developing a strong and productive working relationship with our other municipal partners in this venture.”

Brian Bentz remains the company’s President and Chief Executive Officer while Mark Henderson, the former President and Chief Executive Officer at Barrie Hydro, assumes a new role as Executive Vice President and Chief Operating Officer. Other members of PowerStream’s executive management team include John Glicksman, Executive Vice President and Chief Financial Officer; Dennis Nolan, Executive Vice President, Corporate Services and Secretary as well as Milan Bolkovic, Executive Vice President, Smart Grid and New Systems Technologies.

The transaction was the culmination of nearly two years of discussions and investigations around merger and acquisition opportunities undertaken by both PowerStream and Barrie Hydro as part of their respective growth strategies. Merger negotiations between the two utilities began in April 2008.

About PowerStream Inc.
PowerStream Inc. is the second largest local electricity distribution company in Ontario, providing service to more than 310,000 residential and business customers in Alliston, Aurora, Barrie, Bradford West Gwillimbury, Beeton, Markham, Penetanguishene Richmond Hill, Thornton, Tottenham and Vaughan. It is an incorporated entity, jointly owned by the City of Barrie, the City of Vaughan and the Town of Markham.