Elexicon shares not for sale in Clarington, Whitby amid move to sell

As Ajax and Pickering explore their options for selling their stock of Elexicon Energy, Belleville, Clarington and Whitby have reaffirmed their support for the hydro distribution company.

Elexicon was initially founded five years ago in a merger between Whitby Hydro and Veridian Corporation. It has since provided energy to Ajax, Belleville, Brock, Clarington, Gravenhurst, Pickering, Port Hope, Scugog, Uxbridge and Whitby. (Uniquely in Durham Region, Oshawa has its own power company.)

Several of these municipalities each own part of the company. Whitby has the largest share at nearly 32 per cent followed by Pickering (28 per cent), Ajax (22 per cent), Clarington (9 per cent) and Belleville (9 per cent).

However, last week Ajax and Pickering made a joint announcement saying they were considering selling their shares in the company. Pickering spokesperson Mark Guinto told INdurham the municipalities believe hydro delivery is “not a core service or responsibility” of their level of government.

As a result, the pair announced they were examining their options for selling their stock, a review process expected to take eight to 14 months. They’ve hired Borden Ladner Gervais LLP to undertake this process through a confidential and non-binding Request for Proposal to explore the sale of their Elexicon holdings.

This is the second time Pickering considered selling after a plan to leverage their shares to finance the construction of their ambitious City Centre project. However, cost overruns and COVID-19 stalled the project and the potential sale was abandoned.

However, some of their partners feel otherwise. Days after the Ajax/Pickering announcement Belleville, Clarington and Whitby confirmed they were staying in the energy game.

“Elexicon Energy provides reliable and sustainable energy solutions to our communities while driving economic growth and fostering innovation,” they jointly said, “As majority shareholders, the municipalities of Whitby, Clarington, and Belleville recognize the critical role that Elexicon plays in our local economies and the essential services it provides to residents and businesses.”

Whitby Mayor Elizabeth Roy told INdurham she and her council believe the shares and the resulting dividends are a very valuable part of the town’s income. As such Whitby has every intention to keep their Elexicon stock.

In fact, depending on the valuation Borden Ladner Gervais finds for Ajax and Pickering’s shares, the town is considering buying up some of the stock. “Nothing is off the books,” Roy said. However, she added the caveat that the town would need to see the valuation before council made any firm decision.