Barrie Hydro and PowerStream are simply courting – examining each other exclusively with an eye to marriage.

And in August, they will announce whether they’re engaged or not.

That’s what Barrie representative on the joint steering committee told the sole shareholder – Barrie council – Monday night.

“Both parties are committed to negotiating exclusively with each other. Discussions are proceeding very well,” said consultant Tom Williams, who has worked on several other similar mergers, including Veridian (a product of Pickering, Ajax, Clarington and Belleville utilities) and Horizon Utilities (which serves Hamilton and St. Catharines). Horizon is now in discussions with Guelph Hydro.

The talks are expected to conclude in August, with a public report and discussion to General Committee, as well as in Richmond Hill and Vaughan, the councils that are the shareholders of PowerStream.

Barrie Hydro has already grown; the local distribution company purchased utilities in New Tecumseth, Bradford and Penetanguishene. Newmarket Hydro is looking at acquiring Tay Hydro and is also interested in Barrie Hydro.

 “Why is this going on in Ontario? It’s not unique to Ontario. It’s common around the world. There is a lot of regulatory pressure to decrease costs. There allowing rates to increase at a rate less than inflation. Think about the pressure you’d be facing from a municipal budget perspective if you had to keep increases to one or two per cent,” said Williams.

As well, the increasing use of smart meters and time-of-use rates is increasing the need to purchase specialized equipment in economies of scale, as well as attract highly technical staff.

“In any merger, there will be a number of key topics; they include determining and affirming the business case regarding expected benefits. Another critical topic is the relative ownership stakes. There is typically discussion on items requiring unanimous shareholder consent – that provides a veto for any shareholder, including a minority shareholder,” he said.

Ward 1 Coun. Mike Ramsay wondered if the dating process automatically leads to engagement.

“Have you been involved in any where the bridge and groom get to the altar and then said no?” he asked Williams; Williams said he had, but he could not disclose details of failed talks.