by Sylene Argent, Local Journalism Initiatives
Photo of Group - Submitted
The Town of Essex has agreed to sell all of its E.L.K Energy, and its subsidy company E.L.K. Solutions, shares to ENWIN Group of Companies.
“This has been a monumental day here in the Town of Essex,” Mayor Sherry Bondy said in front of the Municipal Building on Friday morning when making the announcement. “We are all confident this transaction will not only strengthen the infrastructure that E.L.K. Energy needs to provide affordable, reliable energy, but will also ensure that those needs are met for generations to come.”
With its mission to guide, innovate, and expand customer access to safe and reliable energy, Bondy believes ENWIN is “well equipped to enhance E.L.K.’s existing infrastructure across its service area.”
She also spoke of how ENWIN is equipped with the latest technology and innovation to provide the best service to its communities.
The sale of the utility is in the beginning stages, Bondy noted.
“For the most part, operations and business at E.L.K. will remain unchanged over the next 12-months.”
E.L.K customers will continue to receive their bill under the E.L.K. name. In addition, the utility rates charged by E.L.K. will not be impacted due to the transition, Bondy noted.
E.L.K Energy staff – of four non-union employees and around 20 union workers – and office location will remain unchanged. Bondy assured residents and taxpayers this transaction will not increase their annual property taxes.
“When the Town of Essex originally purchased the E.L.K. shares from Kingsville and Lakeshore, it was done as a long-term investment. And, we will continue investing in our community,” Bondy said.
“This move forward with ENWIN will assist the Town in accomplishing its strategic priorities, ensuring the Town continues to explore alternative revenue strategies to allow an affordable-level of property taxes for our residents,” Bondy added.
“This was a well-thought-out transaction,” Bondy noted. “Even back in the previous Term of Council, there were a lot of questions around E.L.K. and the sustainability that we were capable of.”
As a small utility, Bondy said there are a lot of challenges in keeping up with future technology and staff resources.
The previous E.L.K. Boards had a mantra of “keeping rates extremely low and paying off debt,” Bondy said. “That led to a lack of investment in infrastructure. When we inherited the new Board shortly after the election, it was really hard to really make improvements that residents really want and demand.
“People expect reliable hydro, and people expect a level of customer service, and we want to be able to offer that,” Bondy said, adding sticking to the status quo would not allow E.L.K. to do that in a short period of time.
In the end, Bondy hopes consumers will notice better services. She added that ENWIN has a history of reliable rates.
In speaking to what will happen with the current E.L.K Board, Bondy noted it will be transitioned out in the next year. It was negotiated that the E.L.K. territory will have one seat on ENWIN’s Board for ten-years.
When the Town of Essex purchased E.L.K. shares from Kingsville and Lakeshore, it was purchased as an investment, Bondy noted. “But it really hasn’t turned out to be an investment for the Town of Essex, because it has kind of been almost a money pit.”
She noted Essex has received hardly any dividend since its purchase. She had a lot of questions regarding E.L.K. when she was on the Board during the previous Term of Council, which she resigned from to ask more questions. She said there were not many answers provided on asset management.
“When we took over as a new Board, right after the election, we hired Integris to come in for about two-years and they did an amazing job right-siding us up, because it was not pretty. And then we really thought, ‘can we do it ourselves without help from Integris or somebody else?’ And the answer was ‘no.’”
Bondy estimated it would have taken 15-20-years to get E.L.K where it needs to be presently. It was hoped that with ENWIN, E.L.K. could get there faster.
She spoke of the frequency power flicker and outage complaints to E.L.K. It has old infrastructure. Though much was done to fix that, the transition will fix those issues faster.
“People say they don’t want to move to our community because of the power flickers, so we hope this is one way we can give them some faith that it will be better.”
The process of obtaining E.L.K was competitive, Bondy said, adding ENWIN rose above the rest in terms of what could be offered. It also has the technology a larger utility would have, but has the local feel.
“Why are we continuing to own something, when we are not able to serve the customers the way we need to and we are not even getting any financial return,” she added.
The funds from the sale, which has not yet been disclosed, Essex will use wisely, Bondy assured. The proceeds will be invested and the interest will be like an equivalent to a dividend. A portion of the sale money will go towards the Town Hall expansion.
“We recognize energy is more than just a service, it is the lifeblood of our communities, our home, businesses, and everything in between,” Gary Rossi, President and CEO of ENWIN, said. “The decision to acquire E.L.K Energy aligns with ENWIN’s strategic vision for growth, innovation, and regional collaboration. And strengthens our position as a utility dedicated to connecting communities.”
He noted ENWIN is excited to welcome E.L.K.’s employees and infrastructure, recognizing “their local knowledge and expertise are invaluable.”
ENWIN, Rossi added, is committed to a seamless transition that leverages the strengths of both organizations.
“For E.L.K customers, ENWIN pledges to ensure the same level of care and attention that our customers have come to expect. As we integrate, we will enhance reliability, improve efficiency, introduce advanced technologies to elevate your energy experience,” Rossi noted, adding ENWIN’s commitment to Essex in unwavering.
“We recognize the unique needs of each area we serve and we are prepared to tailor our services accordingly,” Rossi said. “This acquisition presents an exciting new chapter for both ENWIN and E.L.K. Energy. And we are honoured to be a part of that journey. Together, we will power a stronger, more resilient, and more connected Windsor-Essex region.”
In speaking to the desire to take over E.L.K., Rossi said growth is important. He also spoke of the regional aspect and the passionate employees.
On the hydro-side of ENWIN’s service, this will be its first rural area.
He added his team is excited to start looking at how to improve the local system.
In terms of rates, E.L.K. is going through a Cost of Service rate application. That is regulated by the Ontario Energy Board. He said E.L.K. and ENWIN have some of the lowest rates in Southwestern Ontario.
Windsor Mayor Drew Dilkens sits on ENWIN's Board, which is owned by the City of Windsor. He spoke of how many things are being worked on collaboratively at the moment.
“It really is about working together as a region, and today I see this as an opportunity to work together. The work that has been done behind the scenes with the E.L.K. team, with Mayor Bondy and her team, has been quite remarkable to get us where we are today,” Dilkens added.
In his mind, it is about economic development, “making sure this region succeeds for many decades to come. And, in order for that to happen, we have to have the power where it needs to be, what it needs to be, in a safe and reliable manner.”
The Town of Essex will ensure customers are informed as the transition process continues. So far, it has created a page on www.essex.ca to answer frequently asked questions on the transition. If residents have additional questions, they can email hydro@essex.ca to connect with staff on this matter.