Veridian Connections shareholders have approved a merger with Whitby Hydro, in a move that will reduce Belleville’s stake in the company, but according to the city, has numerous benefits.
All five municipal share holders approved the merger, including the cities of Belleville, Clarington, Ajax, Whitby and Pickering and now the Ontario Energy Board will have to sign off on the deal.
Once approved by the OEB, Belleville’s stake will drop to 9%, but the company says customers will see more stable rates, smaller rate increases, greater access to resources during outages and better overall customer service.
Despite a drop in stake, shareholders are expected to see higher dividends and close to $90 million in savings over the next 17 years.
Veridian says those dollars saved can be used to offset tax increases and be invested back into the community.
Veridian splits hydro service for the City of Belleville with Hydro One.