The Ontario Energy Board has approved the sale of Westario Power to ERTH Corporation, clearing a major regulatory hurdle in the proposed acquisition.
The decision also approves ERTH's acquisition of Tillsonburg Hydro. The regulator determined the transactions are not expected to negatively affect electricity prices, service quality, reliability or the financial viability of the utilities.
ERTH President and CEO Chris White welcomed the approval.
"Bringing our organizations together provides greater resources and expertise to meet the changing needs of our customers and communities," said White.
Once completed, the transactions will expand ERTH's electricity distribution operations to approximately 60,000 customers across 31 communities in seven counties.
Westario serves several midwestern Ontario communities, including Walkerton, Hanover, Kincardine, Saugeen Shores and North Huron.
ERTH says customers will see no immediate changes, with Westario continuing to operate under its existing name during the transition.
The company also plans to maintain Westario's administration office, operations facility and local staff in Walkerton.
The Ontario Energy Board has approved a nine-year deferred rebasing period for Westario's electricity distribution rates.
ERTH says it will now work toward completing the transactions, with legal closing expected later this year.
