The main options are hold, sell or amalgamate the utility's assets. An amalgamation between neighbouring utilities can bring many benefits to utilities, municipalities and, ultimately, the customers. Benchmark studies have shown that most Ontario MEUs are already run very efficiently, but there could be additional benefits through amalgamating utility distribution businesses. However, by amalgamating, the resulting utility will be a regional corporation with strong ties and allegiances to the local community and customers. Its business priority will be maintaining operations in that region.
Larger organizations can generally realize economies of scale.
The larger business could also access a broader range of skills, and this is particularly important given the new regulations and systems that will have to be implemented with the beginning of competition. The new organization may also be able to offer a greater number of services because of its size. By combining the customer, asset and skill bases of the original utilities, the amalgamated utility has the potential to offer an enhanced range of products and services. The legislation also allows municipaliites to amalgamate their utilties through the same process. However, an amalgamation by transfer by-law is the preferred method of amalgamation.