Ontario Energy Board approves phase one sale of E.L.K. Energy to ENWIN

ELK Energy, based out of Essex, is set to be bought by Enwin Utilities.

The Ontario Energy Board (OEB) has approved phase one of the sale of Essex-owned E.L.K. Energy Inc. to Windsor-owned ENWIN.

The Town of Essex announced back in March it was selling all of its shares in the utility provider.

In its decision released on Oct. 21, the OEB said the sale of E.L.K. will happen in two phases. Phase one is the purchase of E.L.K.’s shares, and for now, both E.L.K. and ENWIN will continue to operate separately and set their own electricity rates.

Before the companies merge in 2028, each utility will ask the OEB to reset electricity rates based on current operating costs, which could lead to increases.

OEB documents show that E.L.K. has been losing money year over year since at least 2022, not earning enough to cover its costs.

Essex Mayor Sherry Bondy and chair of the E.L.K. board of directors, said the approval was a positive step forward for E.L.K. customers.

“I’ve been very vocal on this file saying that E.L.K. is a small but mighty utility, but it can only improve services so much the way it currently exists, so selling and going to another utility will only bring a benefit,” Bondy said.

She added the town hopes to offer a public open house for customers to learn more about the acquisition.

“It will for the most part be business as usual until the companies fully merge together, but, ENWIN offers a lot of pros. They have a 24 hour storm room, they’re a healthy utility so we hope to see some more immediate results and improvements in E.L.K. infrastructure,” said Bondy.

The sale is estimated at $22.5 million according to OEB documents.

Bondy said once the numbers are finalized, council will decide on how to move forward with an investment strategy.

“Right now our plan is to lock a majority of it away, and then use the interest each year for asset management... We know that residents don’t like tax increases, so we hope that the interest will help buffer tax increases and put money into critical infrastructure going forward.”

E.L.K. serves about 13,000 customers across parts of Essex, Lakeshore, and Kingsville.