Westario Power Sale to ERTH Would Protect Jobs and Keep Rates Stable, Board Says
Westario plans sale to ERTH with advisory committee and board seat, but long-term governance by local municipalities will end after one year.
Westario Power’s Board of Directors is recommending the sale of the municipally-owned utility to ERTH Corporation, citing the need for greater capacity to meet Ontario’s growing electricity demand and long-term infrastructure needs.
The proposed transaction is now in the hands of Westario’s municipal shareholders for approval. If endorsed, it would proceed to the Ontario Energy Board (OEB) for final regulatory review under the agency’s “no harm” test, which assesses whether a sale would negatively impact customer rates or service.
Westario Power currently serves 24,500 customers across 17 communities in Midwestern Ontario. The sale would see it join ERTH Power Corporation, which serves 25,000 customers in southwestern Ontario and is itself municipally owned by nine municipalities.
Strategic Sale Reflects Growth in Provincial Demand
In a media release issued December 8, Westario Board Chair and Saugeen Shores Mayor Luke Charbonneau said the recommendation to sell follows an extensive process that included interest from multiple parties:
“We are confident this sale will benefit our customers, employees and the communities we serve by making sure the utility can meet the demands of electrification, growth and climate change,” Charbonneau stated in the release.
“We had the opportunity to take our time and carefully consider many options… before determining that a sale to ERTH would be the right choice.”
The announcement comes as Ontario’s Independent Electricity System Operator (IESO) projects a 75% increase in electricity demand over the next 25 years.
The growth is being driven by a combination of factors, including the electrification of manufacturing, increased use of electric vehicles, the development of AI data centres, and population growth.
Westario’s Board said it sees consolidation as a necessary response to meet those needs. The utility described the proposed sale as a proactive decision aimed at ensuring future reliability, stable customer rates, and the capacity to respond to climate-driven weather events.
Jobs and Operations to Be Maintained
A spokesperson, responding to questions from the Owen Sound Current, said maintaining jobs and local operations was a top priority during negotiations.
“One of the key criteria was that we wanted a partner that would protect Westario jobs,” the spokesperson said.
“ERTH has agreed to maintain all Westario jobs and has committed to job and location guarantees for all existing management and unionized employees for the foreseeable future.”
Unionized employees will retain seniority and service credits within the merged company, and ERTH reportedly anticipates growth in Westario’s service area that could support further employment.
The existing administration and operations facility will also remain the central site for Westario’s service area “for the foreseeable future,” the spokesperson said.
Service Levels and Rates Unchanged for Customers
Customers are not expected to see immediate changes. Billing will continue under the Westario Power name, and rate increases will remain limited to inflation, consistent with existing rate plans.
In the media release, Westario CEO Walter Malcolm said the Board was firm in its conditions for any sale:
“We did not make this decision lightly,” Malcolm stated. “We had to be sure that customer rates would be kept at existing levels and that our high level of service would be maintained.
Westario customers will continue to receive current levels of service, including response times and outage restoration. ERTH is also expanding its remote 24/7 emergency control room, which will be used across the region to help reduce outage durations.
Local Oversight and Community Programs
An advisory committee will be established for one year following the transaction’s closing to provide a channel for communication between Westario communities and ERTH. The committee will meet to monitor the implementation of the sale and ensure service standards are upheld.
In addition, one director from Westario’s service territory will be appointed to the ERTH Power Board. However, after the first year, there will be no formal ongoing mechanism for direct governance by former Westario municipal shareholders.
When asked about community support and charitable funding, the spokesperson confirmed that ERTH would maintain current commitments:
“Like Westario, ERTH also has a community sponsorship program… [and] has agreed to continue providing community grants as Westario has been doing.”
Valuation Process and Next Steps
The financial terms of the sale have not been disclosed. Westario’s spokesperson said the price will remain confidential until the OEB review is complete.
In the prepared statement, the utility said the offer “reflects Westario’s strong financial position and the value our company brings to the communities we serve.”
While no formal third-party valuation was made public, the spokesperson told our publication Westario went through a strategic planning process a few years ago to determine the future direction of the organization
“This is the outcome of that process,” they stated, adding that advisors with experience in local distribution company (LDC) transactions were hired, and potential buyers were invited to submit detailed bids. The final agreement, the utility said, was negotiated in collaboration with legal and financial advisors on both sides.
If approved by shareholders and the OEB, the transaction would bring Westario under the ERTH Power umbrella, expanding its service area to 30 communities across seven counties.