The one word that stood out above all others in regards to the now done deal to merge Barrie Hydro and York Region-based PowerStream was ‘risk.’

There seemed to be blanket agreement that the merger did not come without an element of risk.

Those who supported the deal thought the risk worth taking; those opposed did not.

We agreed with those who considered the merger too risky. Nothing we’ve seen has changed this position. For the sake of the city, let’s hope a future “told you so” isn’t in the cards and that we, and others, were wrong.

Apart from concerns about what the loss of a standalone Barrie Hydro means to the city, including the ability to use it to attract investment, we’ve been critical of the process followed to determine the merger with PowerStream was the preferred option.

As well as occurring largely behind closed doors, which kept the public in the dark, the deal also had a deadline, Oct. 17, which gave negotiations a rushed, must-get-done, feel.

But as revealed in a letter from Ontario Finance Minister Dwight Duncan, the deadline was never really all that final. It’s quite possible, probable even, it could have been extended, or that another window of opportunity would open up some time in the near future.

The province has been encouraging the merger of smaller utilities into larger entities to create efficiencies and investment in the electrical distribution industry. To encourage this process it established a ‘tax holiday’ that provides a transfer-tax exemption.

It’s debatable whether Barrie Hydro, one of the larger utilities in the province, meets the definition of ‘smaller,’ and if the province wants to continue to encourage mergers, there will be other tax holidays, as there have been previous ones. The letter from Duncan, to Mayor Dave Aspden, said as much.

The minister thanked the mayor for his letter “regarding the tax exemption on the sale of electricity distribution assets related to Barrie Hydro and PowerStream Inc.” Duncan goes on to apologize for the delay in responding (the letter was received Friday and included in council packages for consideration Monday), outlines the rationale for the exemption, and concludes with, “Your request to extend the current transfer tax exemption is actively being considered.”

Reading between the lines, that’s pretty much a “yes” to the request for an extension. There’s a small risk the minister could have denied the request, but as long as everyone is in a risk-taking mood, why not take the extra time to not only consider this merger, but also others that might come along?

It’s important to note that at this point no one is talking about maintaining the status quo. Left alone, Barrie Hydro would have gotten bigger; its customer base would have increased though projected population growth alone. Also, there may have been an opportunity to merge with other utilities in Simcoe County and neighbouring regions that provided Barrie with a controlling share.

As it is, the city will have three directors on a 13-member board, and between 18-21 per cent of the merged company.

Risks identified include losing a standalone hydro as a tool to attract investment, little to no control in the new company, and projected benefits (higher dividends, operational savings) that may not materialize, based on future circumstances.

Add to this the loss of up to 50 higher-paying administrative type jobs (to be moved to Vaughan), a development completely contrary to this council’s stated objective of bringing such jobs to Barrie, and we joined others in determining the risk too great.

With the apparent willingness of Minister Duncan to extend the deadline, why didn’t council take the extra time afforded to think things over in a less rushed atmosphere, perhaps even coming up with a better deal for the city and its residents?

As it is, the deal is done and barring some unforeseen reversal of fortune Barrie Hydro, for better or worse, is history.