As part of the approved deal, Norfolk Power residential customers will see a 1.4 per cent reduction to their monthly distribution delivery rates and general service customers will see a reduction between 1.4 per cent and 1.6 per cent depending on their rate class, effective September 8, 2014. In addition, distribution rates will be frozen for the next five years.
"We are pleased to welcome new customers and new employees to our Company," said Carmine Marcello, President and CEO, Hydro One. "We know our customers count on us to deliver the electricity that powers their lives. We are committed to delivering great service for Norfolk Power's customers and we remain focused on prudent management, efficient operations and improving the customer experience for everyone we serve."
Norfolk Power will operate as usual until the transition to Hydro One is complete. This includes no changes to customer account numbers, bills, billing and payment options and service options until the transition to Hydro One is complete, which is expected to be sometime in 2015.
"I am confident that Hydro One will provide Norfolk Power customers with safe and reliable service for years to come. This recent news represents a success for the Council, the County and the citizens of Norfolk", said Mayor Dennis Travale. "Through the Advisory Committee we will continue to work together to ensure a smooth transition for employees and customers."
On April 2, 2013, Norfolk County announced the sale of the local utility for $93 million. Hydro One paid Norfolk County approximately $66 million net after assuming Norfolk Power's existing debt of approximately $27 million.
In addition, Hydro One has reached agreements to acquire two more local distribution companies in southwestern Ontario, Woodstock Hydro Holdings Inc. Woodstock Hydro and Haldimand County Utilities Inc. Haldimand Hydro, which are pending OEB approval. The purchase of Norfolk Power, Woodstock Hydro and Haldimand Hydro will grow Hydro One's customer base by approximately five percent.
Hydro One delivers electricity safely, reliably and responsibly to homes and businesses across the province of Ontario and owns and operates Ontario's 29,000 km high-voltage transmission network that delivers electricity to large industrial customers and municipal utilities, and a 122,000 km low-voltage distribution system that serves about 1.4 million end-use customers and smaller municipal utilities in the province. Hydro One is wholly owned by the Province of Ontario.