Town of Essex to sell electricity utility E.L.K. Energy to Enwin

The Town of Essex has announced it is selling its stake in E.L.K. Energy to the Enwin group of companies. 

The move is about enhancing the reliability of energy services in Essex, Lakeshore and Kingsville after years of customer complaints, the town said. The town is the sole shareholder of the electrical utility.

"We are confident that this transaction will not only strengthen the infrastructure that E.L.K. Energy Inc. needs to provide affordable, reliable energy, but will also ensure that those needs are met for generations to come," said Town of Essex Mayor Sherry Bondy in a news release issued Friday.

"Enwin Utilities Ltd. is well-equipped to enhance E.L.K.'s existing operations and infrastructure across its service area."

E.L.K. customers have complained for years about electrical flickers and full-on power outages resulting in numerous blown appliances and a frequent need to reset clocks.

The Ontario Electricity Board fined E.L.K. $5,000 in 2022 for not keeping records of its inspections. 

Customers hoping for more reliable service

Nicole Atkinson has been an Essex resident for six years. She's hopeful the switch to Enwin would mean more investments and reliable service for customers.

"They have the capital to put into investing in our infrastructure and into our transformers and all that stuff," Atkinson told CBC News.

"Hopefully, we'll get less power outages to no power outages, maybe just if there's a storm or a car accident that hits a hydro pole."

Meanwhile, Carrie Quinlan, a restaurant owner in Essex, said the years of inconsistent service was "hard" on sales, and news of the coming change in ownership brings her hope.

"Enwin has a great reputation. They have great leaders and [I'm hopeful] that they will continue to have competitive rates, that we won't see too much of a skyrocket," Quinlan said. 

She's also hopeful they will invest into upgrades, and will "be able to keep our town and our community at a place that we're just going to have power all the time."

Kimberly Deyong, Deputy Mayor for the Town of Kingsville, and the town's representative on the E.L.K. board, says the company's "history of unreliability" has been a cause for concern. 

"In the past I've brought forward resolutions … imploring the Town of Essex as the owner of E.L.K. to do a deep dive review of what's happening with their utility, feeling, as one of their biggest customers, that we weren't necessarily getting the level of service that we should have been," she said.

But Deyong said there had been some improvement in recent times under the newest board, and "this is essentially something we're looking for with some continuity with Enwin taking over."

No immediate changes to billing or staffing, town says

The town engaged in a competitive process to find the right buyer for the utility, it said in the release.

Enwin will enhance E.L.K.'s infrastructure and bring advanced technology and innovative solutions to improving energy service, it added. 

In terms of what the transaction means for E.L.K. customers, the town said:

• Customers will continue to receive bills under the E.L.K. name for the foreseeable future.

• Enwin and E.L.K. will create a stabilized rate strategy for users for the upcoming years.

• E.L.K.'s staffing and office locations will stay the same for the foreseeable future.

• The move will not impact property taxes in the Town of Essex.

Enwin President Garry Rossi said that Enwin is dedicated to building a strong local presence in its new service communities. 

"This acquisition marks a significant milestone in Enwin's commitment to providing reliable, efficient and innovative energy solutions to our expanding service territory," Rossi said. 

"By joining forces with E.L.K. Energy, we're strengthening our ability to meet the evolving needs of all our customers across Windsor-Essex."