After months of strategy and planning, a merger now joins the electric company assets of Cochrane Public Utilities Commission, Iroquois Falls Hydro and Kapuskasing PUC. The new company, Northern Ontario Wires Inc. is still awaiting approval by the Ontario Energy Board.
The move to merge assets is a direct result of the Ontario government's decision to introduce competition to the electric industry. Under deregulation, public utilities like the ones in Cochrane, Iroquois Falls and Kapuskasing would face increased costs.
A company official says similarities between the three utilities made the merger a logical move. An independent business appraisal determined the ownership of shares and the number of representatives on the new company's board of directors. The municipalities of Cochrane and Iroquois Falls are the owners of Northern Ontario Wires Inc., but board members have been appointed from all three communities.