Mayor Roy Raises Concerns Over Proposed Changes to Municipal Electricity Utility Governance

The Ontario government is proposing significant changes to how municipally owned electricity utilities are governed, and I’m concerned about what these changes could mean for municipal accountability, local decision-making, and the interests of taxpayers.

The Town of Whitby has a significant stake in Elexicon Corporation, holding 32 per cent ownership, the largest share among its five municipal shareholders, which include Pickering, Ajax, Clarington, and Belleville. 

With that ownership comes a responsibility to protect the interests of Whitby residents and ensure their investment is managed responsibly.

Under the proposed legislation, municipal elected officials and staff would no longer be permitted to serve as voting members of utility boards. This would significantly weaken the ability of municipal shareholders to participate in decisions affecting these valuable public assets.

This is especially concerning at a time when municipalities are being asked to make significant investments in our electricity infrastructure.

Just recently, municipal shareholders of Elexicon Energy converted approximately $62 million in promissory notes into equity, demonstrating their long-term commitment to the utility and the communities it serves.

I support the province's goal of ensuring electricity utilities have qualified, independent boards capable of making sound business decisions. But achieving that goal should not come at the expense of municipal representation.

Municipalities are under tremendous pressure to deliver new housing and support growth – and that growth depends on having the needed infrastructure and electricity capacity in place. At a time when municipalities are already raising concerns about the funding and tools available to support growth, we should not also be weakening their ability to oversee the critical infrastructure assets they own and invest in.

I urge the Ontario government to work with municipal shareholders to find a better balance – one that delivers strong corporate governance while respecting municipal ownership and protecting the interests of taxpayers.

For media inquiries, please contact:

Office of the Mayor

Jillian Follert
Public Affairs Coordinator, Office of the Mayor
Phone: 289.314.9101
Email: follertj@whitby.ca