Barrie Hydro should merge with York Region-based PowerStream, a city staff report recommends.

City clerk Dawn McAlpine, however, also suggested the city consult with the public on the merger that would see the local distribution company become 18 to 21 per cent of the proposed, larger company; the city would also have three of 13 directors on the proposed utility’s board.

Public consultation is to feature an as-yet unscheduled public open house next week, as well as information on the city’s website.

Council was to receive information at its regular meeting last night. Check the site Wednesday for the most up-to-date information on this story.

According to the report, residential rates would drop by five to 6.5 per cent, and dividends would be expected to rise $25 million over the next 10 years, the clerk noted in her report.

However, Durham-based Veridian Corporation is also interested in a merger with Barrie Hydro.

However, PowerStream is the only one being considered by council.

Council was to receive information at its regular meeting last night. Check barrieadvance.com today for the most up-to-date information on this story.

The current Barrie Hydro is the product of several municipal utilities. In 1999, the city retained ownership of the assets of the Barrie Public Utilities Commission, and as restructuring in the energy sector occurred, city council created Barrie Hydro Holdings Inc. in October 2000.

The utility subsequently acquired several other smaller Simcoe County utilities. Barrie Hydro Distribution is now Ontario’s 11th largest municipally owned local distribution company.

To promote consolidations, Ontario is offering a “public sector only” transfer tax holiday, which expires Oct. 17.

In response, Barrie Hydro began looking at options – including acquisitions, mergers and sale.

PowerStream, the third-largest local utility company, expressed interest and this spring, the two utilities began talks.

After consulting with the public, the issue will return to city council Sept. 8.