NT Power enters into an agreement with Alectra Inc. to explore potential merger or sale
Newmarket ON - The Town of Newmarket and Tay Township (NT Power Shareholders) have entered into an agreement with Alectra Inc. that outlines the key terms of a potential merger/sale with NT Power. In December 2024, it was announced that the NT Power Shareholders were exploring a potential merger/sale of the utility company. NT Power Shareholders then explored options with various potential utility partners.
With the landscape for electricity demand in Ontario rapidly changing fueled by growth, electrification and climate change, the Town of Newmarket and the Township of Tay are assessing how a merger/sale of NT Power could support their customers in providing a safe, reliable, affordable and sustainable local energy system for future generations.
Following a thorough review by the Town of Newmarket and Tay Township and legal and financial advisors, the Shareholders have decided to enter into an exclusive 120-day due diligence period with Alectra Inc. for final consideration by the two Town Councils.
NT Power Shareholders have indicated to Alectra Inc. that its priorities for a final agreement include the following:
- Prioritizing reliability and customer service
- Job protection for all NT Power employees
- Maintaining NT Power offices/operations centre in Newmarket
- Continued presence in Tay Township and Midland
- Ongoing capital investment into the system to ensure effective and efficient service today and into the future
Next steps include providing Alectra Inc. with the exclusive 120-day period to complete more extensive due diligence, and to formulate a merger/sale agreement for final consideration. If the final agreement is accepted by Newmarket and Tay Council, the Shareholders will have the potential to speak with other interested utility partners to ensure that they receive an agreement that reflects their best option going forward.
If this process deems Alectra Inc. to be the best fit for Newmarket and Tay, an application to the Ontario Energy Board (OEB) to approve the merger/sale will be filed. This process can take several months and during this time, NT Power would remain an independent entity with an independent Board of Directors.
“We are pleased to be entering into an exclusivity period with Alectra Inc. that will provide them the opportunity to demonstrate that a partnership with them will focus on competitive rates, reliability and customer services and most importantly, retain all jobs at NT Power,” says Mayor John Taylor. “Demands on our local utility in the coming decades will be complex and significant as we face growth, electrification and climate change. We look forward to continuing to evaluate how our communities and NT Power customers and staff might benefit from enhanced resources which a merger/sale with Alectra Inc. may offer,” says Newmarket Mayor John Taylor.
"We welcome this next step in exploring a potential partnership with Alectra Inc.," says Tay Township Mayor Ted Walker. "As we face growing energy demands and the impacts of climate change, it is important that we consider how best to ensure continued service, fair rates and support for our residents and local economy."
“NT Power’s Board of Directors supports the potential agreement with Alectra Inc.,” says NT Power Board Chair, David Charleson. “As energy needs, demands and the service expectations in our communities continues to evolve and grow at a rapid pace, the Board and our Shareholders recognize the pressure to deliver safe and reliable energy to our customers while keeping rates affordable, and our infrastructure up to date. I believe this potential merger/sale will help ensure reliable and sustainable power for our communities well into the future.”
About NT Power
Newmarket-Tay Power Distribution Ltd. (NT Power) is a local electricity distribution company licensed by the Ontario Energy Board. NT Power is jointly owned by the Municipalities of Newmarket (93%) and Tay (7%), serving 50,000 customers in the areas of Newmarket, Tay and Midland.
About Alectra’s Family of Companies
Serving more than one million homes and businesses in Ontario’s Greater Golden Horseshoe area, Alectra Utilities is now the largest municipally owned electric utility in Canada, based on the total number of customers served (Approximately one million businesses and families). Alectra contributes to the economic growth and vibrancy of the 17 communities we serve by investing in essential energy infrastructure, delivering a safe and reliable supply of electricity, and providing innovative energy solutions.
Alectra Inc. (Alectra) is an investment holding company with a head office in Mississauga, Ontario. Alectra owns 100 per cent of the common shares of each of Alectra Utilities Corporation (AUC) and Alectra Energy Solutions (AES) which in turn has two wholly owned subsidiaries: Alectra Energy Services Inc. (AESI) and Alectra Power Services Inc. (APSI). AESI has two wholly owned subsidiaries – Util Assist Inc. (UA) and Holland Power Services Inc. (HPS). HPS has two subsidiaries: Holland New England and Gagnon Line Construction.
Media Contact:
Wanda Bennett, Director, Corporate Communications, Town of Newmarket
Email: wbennett@newmarket.ca | Telephone: 905.895.5193 ext. 2041