FAQs

Starting in 2022, NT Power Shareholders began reviewing long-term ownership options in response to broader changes across Ontario’s electricity sector. Population growth, electrification, climate commitments, and significant infrastructure renewal are increasing the scale and complexity of operating a distribution utility.

The Shareholders determined that evaluating a partnership with a larger municipally owned utility was a responsible step to consider how best to position the community for future electricity demands, manage long-term capital requirements, and reduce financial risk to taxpayers.

NT Power is stable, well-managed, and financially sound. This exploration was not driven by financial distress or operational weakness. This was a forward-looking strategic review focused on long-term sustainability.

Yes. After negotiating a binding agreement with Alectra, the Town initiated a 45-day “Go Shop” process to test the market and invite additional offers. At the end of the “Go Shop” period Alectra’s proposal was determined to provide the strongest overall balance of financial stability, employee protections, and community considerations. 

While the NT Power Shareholders received other proposals from Utilities, they did not meet our requirements to the same degree.

Alectra’s proposal provides the strongest balance of financial security, community protection and long-term stability. Financially, Alectra’s deferred payment structure offers:

• Guaranteed fixed annual payments for seven years
• Annual payments for years 8 – 13 that are consistent with dividends paid to other Alectra shareholders
• Participation in future growth, together with protection from downside risk, including a guaranteed minimum payout amount

For more information, please see the Report XX

In addition to the financial considerations, there are also important qualitative considerations to weigh in choosing a service provider to the community, an employer to NT Power staff, and a partner to the NT Power Shareholders for the next 7-13 years under the deferred payment option.

Alectra’s stronger alignment with NT Power’s our core values and priorities, including job protection, a guarantee that employees can continue working in their current locations until at least 2031, capital investment commitments, customer service continuity, and a transition committee which provides the Shareholders with a veto power on the matters of most importance to NT Power made them the preferred partner by the Shareholders. 

Alectra is also committed to maintaining the Newmarket operations centre under a long-term lease, supporting continued local service delivery and rapid response capability.

Protecting NT Power’s skilled workforce and preserving local expertise were important considerations throughout the evaluation process. 

No rate increases are tied to this transaction. The agreement includes a distribution rate freeze for 2027 and 2028. Alectra’s rate zones are currently below NT Power’s rate zones. 

All electricity rates remain regulated by the Ontario Energy Board (OEB). The OEB must apply a “no harm” test before approving the transaction, ensuring customers are not negatively impacted.

Our commitment to affordable, reliable power is why we’re always looking at new and innovative solutions, including this  sale via a deferred payment model to improve our service to the communities we serve. 

Employee stability and job protection were core priorities throughout the negotiation process.

Alectra has provided a commitment that no job will be lost because of this deferred sale, and in addition they confirmed that no employee will need to move locations without their written consent prior to 2031.  

When the transaction officially closes, employment will continue for all NT Power employees on the same or no less favourable terms.

Electric utilities rely on skilled, experienced employees who understand their local systems and communities.

Protecting NT Power’s workforce and retaining local expertise were clear priorities throughout the process. 

Alectra has recognized the value of NT Power’s employees and has made employment stability commitments as part of its proposal.

The transaction will proceed to the Ontario Energy Board for regulatory review. During that time, NT Power will continue operating independently under its current Board of Directors. 

The OEB review process typically takes several months. Closing is anticipated in late 2026, subject to regulatory approval.

If the deferred sale is approved by the OEB, NT Power will continue to operate as a separate business unit under the transition committee until 2031. Alectra has provided a commitment that no job will be lost because of this deferred sale, and in addition they confirmed that no employee will need to move locations prior to 2031.  

Employee stability and job protection were core priorities throughout the negotiation process.

If the OEB does not approve the transaction, NT Power would remain municipally owned under the current structure.

The agreement includes a transition governance structure that provides Newmarket with representation and veto rights on key matters during the integration period. 

The Town retained external legal and financial advisors throughout the process to ensure rigorous due diligence and independent financial analysis. The agreement includes protections designed to limit post-closing risk exposure to taxpayers.

The competitive “Go Shop” process was conducted specifically to confirm market value and ensure the Town pursued the strongest available option.

Yes. Alectra has committed to maintaining local offices and operations centres. Maintaining a strong local presence ensures rapid response during outages, preserves community relationships, and protects the customer experience that NT Power has built.

The guaranteed annual payments will support long-term municipal priorities, infrastructure planning and financial sustainability. Council will determine the most appropriate allocation of funds within the Town’s broader financial strategy.

The Towns have historically received approximately $1.3 million per annum in dividends from NT Power. Under Alectra’s deferred structure, the Towns would receive approximately $4.35 million annually for seven years more than triple the current amount along with a guaranteed minimum payout at the end of the term.

The guaranteed annual payments will support long-term municipal priorities, infrastructure planning and financial sustainability. Council will determine the most appropriate allocation of funds within the Town’s broader financial strategy.

Ontario’s electricity system is entering a period of significant transformation. Acting now allows the Town to secure strong financial protections, protect employees, maintain local service and position the community for long-term stability.

The recommendation reflects careful consideration of financial modelling, market testing, risk management and community priorities. The goal is to ensure reliable electricity service while safeguarding public funds for future generations.

No other proposal met this full combination of financial strength and employee/community protections. Alectra’s agreement delivers on every priority established by the Shareholders:

• Ensures competitive local electricity distribution rates
• Protects reliability and exceptional customer experience
• Guarantees job protection for all NT Power employees
• Maintains local offices and operations centres
• Secures ongoing necessary capital investment
• Provides a strong, prudent, and significant return on investment
• Opens the door to a future merger opportunity
• Creates major financial decision points at 7, 10, and 13 years
• Allows participation in sector growth
• Features an industry-leading deferred purchase price model that enhances returns while mitigating risk

At this time, the Town of Newmarket, Tay Township has entered into an exclusive 120-day period to complete more extensive due diligence, and to formulate a merger/sale agreement for final consideration. 

If the final agreement is accepted by Newmarket and Tay Council, the Shareholders will have the potential to speak with other interested utility partners to ensure that they receive an agreement that reflects their best option going forward. 

The 120-day period agreement is set to come to an end in December 2026. More information on the final decision will be released to the public at that time.