Clarington Council has endorsed a recommendation from staff to phase-out Elexicon dividend and interest revenue from the operating budget in 2026 and 2027.
It is not clear as to what impact the transfer will have on other operating budget revenue sources like property taxes.
It is being recommended to continue the phase-out of the operating budget reliance on investment income from Elexicon. Future investments are recommended to go into capital reserves to assist with the municipality’s asset management plan.
Elexicon Corporation is a holding company that is owned jointly by five municipal shareholders as follows:
Elexicon Energy is a fully owned subsidiary of Elexicon. It is a rate regulated electricity distribution company that delivers electricity to over 180,000 customers throughout ten municipalities in Ontario including to Ajax, Brock, Clarington, Pickering, Scugog, Uxbridge and Whitby in Durham as well as to Port Hope, Belleville and Gravenhurst.
Elexicon was formed in 2019 through the merger of Veridian and Whitby Hydro and assumed the same operating territory as its predecessor organizations.
With Pickering and Ajax request for proposal to transact their shares completed, at this time there are
no pending share transactions, said the municipality.
It said the corporation’s 2024 Consolidated Financial Statements show an improving net income in 2024 compared to 2023. Elexicon has also completed customer surveys to complete a capitalization plan, which will require Elexicon to invest in the necessary infrastructure to service a growing customer base and maintain delivery reliance to existing customers. This investment plan will require significant capital financing.