The Town of Essex has announced a major move that will impact energy delivery across parts of Essex, Lakeshore, and Kingsville.
The town has announced it has agreed to sell all shares of E.L.K. Energy Inc., along with its subsidiary company, E.L.K. Solutions Inc., to the ENWIN Group of Companies, owned by the City of Windsor.
A release states that "a competitive process was undertaken by the town to ensure that the most suitable company was chosen to meet the unique requirements of the E.L.K. Energy Inc. service territory and allow E.L.K. Energy Inc. to be in the best position to service the community's electricity needs in the future."
The sale is expected to allow ENWIN to bring in advanced technology to improve and upgrade energy service in the region, addressing E.L.K.'s infrastructure, specifically around aging systems that have caused occasional power flickers and disruptions in service.
Essex Mayor Sherry Bondy, chair of the E.L.K. board of directors, says there have been many questions around E.L.K. and the sustainability we were capable of.
"We're a fairly small utility, so there are a lot of challenges in keeping up with future technology and staff resources. The previous E.L.K. board had a mantra; previous boards, many of them actually, had a mantra of keeping rates extremely low and paying off debt. So what happens is that it leads to a lack of investment in infrastructure," she says.
A sale price was not disclosed.
Bondy says when Essex purchased shares in the utility from Kingsville and Lakeshore, it was meant to be an investment, but it hasn't turned out that way.
"It's kind of been almost a money pit where we have many companies that get dividends. We have not received hardly any dividends," she says. "Why are we continuing to own something when we're not able to serve the customers the way we need to, and we're not even getting any financial return?"
The sale and transition are expected to take a year.
Bondy says the end consumer will hopefully notice better service.
"What we'll see is some of the technologies they have in place, more crews, better technology around tree trimming, and better technology around storms," she says. "Our staff at E.L.K. will be able to learn and grow into the future with more access to training. Technology that we don't presently have at E.L.K."
E.L.K. customers will continue to receive bills under the E.L.K. Energy Inc. name for the foreseeable future.
ENWIN and E.L.K. will ensure a stabilized rate strategy for users in upcoming years, and E.L.K.'s staffing and office locations will remain unchanged for the foreseeable future.
E.L.K. currently employs four non-union staff and 20 unionized workers.
The town states that the transaction will not lead to an increase in property taxes for Town of Essex residents.
"This acquisition marks a significant milestone in ENWIN's commitment to providing reliable, efficient, and innovative energy solutions to our expanding service territory. By joining forces with E.L.K. Energy, we're strengthening our ability to meet the evolving needs of all our customers across Windsor-Essex," remarked Garry Rossi, President and CEO of ENWIN Utilities Ltd.