E.L.K. Energy and ENWIN Utilities Customer FAQs

The Town of Essex undertook a comprehensive review of its investment in E.L.K. Energy Inc. and decided to sell the shares to ENWIN Utilities Ltd. Learn more about the transaction below.

Frequently Asked Questions (FAQs)

Sale of E.L.K. Energy Inc. Shares to ENWIN

Beginning in 2022, the Town conducted a strategic review of its investment in E.L.K. Energy Inc. to determine whether the original objectives of municipal ownership were being achieved and to evaluate the best path forward for the utility, its customers, and the Town. During this review period, E.L.K. and the Board retained a Management Services Provider to provide interim senior leadership while the Board and the Town assessed available options. The strategic review concluded that a change in ownership structure should be considered, either through a strategic partnership, merger, or share sale. This led to a competitive RFP process and, ultimately, the sale of E.L.K. Energy Inc. shares to Windsor Canada Utilities Ltd. (ENWIN Utilities), a municipally owned, public utility. The sale has now been completed. On July 20, 2026, Council received the first public report following closing and made the final decisions regarding the proceeds, including the establishment of the E.L.K. Legacy Reserve and the long-term investment strategy for the remaining funds. 

The Town anticipates the sale will strengthen the current E.L.K. service areas energy infrastructure and service levels. Customers can expect improved service reliability, renewal of aging infrastructure, and new advanced technology to ensure safe, sustainable, and affordable energy for the community now and in the future. 

This transaction helped the Town of Essex achieve its Strategic Priorities by strengthening its energy infrastructure and gaining alternative revenue sources. The sale supports the long-term goal of maintaining affordable property taxes for residents while ensuring reliable and modern energy services. 

In alignment with the Town’s alternative revenue strategy, the annual investment income earned from the proceeds of the sale, estimated at $600,000 annually, will be largely used to support core infrastructure renewal, by helping to close the gap identified in the Town’s Asset Management Plan (AMP).  As noted in the AMP Financial Plan, the Town is currently facing a funding gap of approximately $29M annually. In February 2026, Council adopted a financial plan which would close the funding gap by 75% over the next twenty years.

This decision was made strategically by incorporating the investment income from the E.L.K. Legacy fund into future capital forecasts, as recommended in the AMP Plan. The sale proceeds will help reduce the pressure that would otherwise fall on the tax levy, particularly given the significant infrastructure and asset-management gap. However, a full tax freeze would not be fiscally responsible if it meant deferring required maintenance, delaying priority capital projects, or creating larger tax increases in future years. The objective is to use the funds strategically to spread the impact on taxpayers, support steady and sustainable budgeting, and avoid sharp year-over-year increases wherever possible. 

ENWIN has expressed to the Town the plan for a stabilized rate strategy for customers in the upcoming years. Any rate adjustments will follow Ontario Energy Board guidelines. 

Both ENWIN and E.L.K. Energy will continue to operate independently during a thoughtful integration. This allows for consistent service and support for all customers throughout the transition. Residents and businesses will continue to receive energy bills under the E.L.K. Energy Inc. brand during the transition period. 

If you are an E.L.K. Energy customer, please continue to contact E.L.K. Energy directly for any questions about your account, billing, or service needs.

E.L.K Energy Contact Information:

  • Phone: 519‑776‑5291
  • Toll‑Free: 1‑877‑355‑7798
  • Website: elkenergy.com
  • Email: customer.service@E.L.K.energy.com
  • Hours: Monday to Friday, 9:00 AM – 4:00 PM (excluding statutory holidays)

At this time, there will be no changes to E.L.K. Energy Inc.’s staffing or office locations. Operations will continue as usual, and the transition to ENWIN will not disrupt day-to-day activities.

With the sale of E.L.K. Energy Inc. now complete, ENWIN has assumed responsibility for E.L.K. and is expected to support continued investment in the local electricity system. Customers can expect a continued focus on service reliability, renewal of aging infrastructure, and the use of advanced technology and innovative solutions to strengthen energy services in the region. As the integration progresses, customers will also benefit from ENWIN’s customer service model, including access to 24/7 local contact centre support. On July 20, 2026, Council received the first public report following closing and made final decisions regarding the sale proceeds, including the establishment of the E.L.K. Legacy Reserve and the long-term investment strategy for the remaining funds. 

Yes, customers will still be able to contact E.L.K. Energy Inc. for service-related issues during the transition period (approximately, the next 8-12 months). The customer service experience will remain the same while the transition to ENWIN is underway.

Following repayment of debt and transaction costs, the Town expects to receive approximately $21.9 million in net proceeds. No corporate income tax, capital gains tax, or transfer tax applies to the transaction, as municipalities are exempt from these taxes. In addition to the purchase price, the Share Purchase Agreement sets out that, following the sale, a 5 person volunteer Advisory Committee will be created for a transitional period of up to 5 years, the Town will have the ability to nominate a member of the ENWIN Board for a period of 10 years.  Also included in the compensation package were two ancillary agreements. One agreement specified a Naming Rights Initiative for a Town Asset in the amount of $500,000 over a 10-year period, and the other agreement specified a local community commitment program, whereby ENWIN agreed to donate $350,000 ($70,000 per year) to local community initiatives within Essex, Lakeshore, and Kingsville over a 5-year period.

The Town is moving forward with a long-term investment strategy, which will incorporate proceeds directed toward priority capital projects and a newly created E.L.K. Legacy Reserve. Council had immediate capital needs that would have required long-term debt if it weren’t for the ELK funding. 

The estimated proceeds of $21.9 million were directed as follow: 

  • Priority Capital projects: $6.9 million 
    • $3.34 million for the new sports field development 
    • $1 million for Fire Station 3 
    • $2.56 million for the expansion of Town Hall 

  • E.L.K. Legacy Reserve investment portfolio: $15 million 
    • Annual investment income, estimated at $600,000, be allocated 70% to core infrastructure replacement through the Asset Management Plan, 10% to new core capital projects, and 20% reinvested to grow the fund. 
    • A competitive RFP process was conducted to appoint the investment advisors. Criteria and scoring were set to ensure a fair bidding process, and included categories such as risk management and governance, public sector and team experience, performance and track record, investment process and philosophy, and reporting and service commitments. Hobson Chahal Poulias Advisory Group scored the highest out of all bidders and was formally awarded by Council on May 19, 20
    • Per the Municipal Act, 2001 and Ontario Regulation 438/97, the Town is only permitted low-risk investment types, which prioritize the preservation/protection of capital permit the loss of capital as well.
    • The Investment broker is paid through a small percentage of the yield on the transaction and this is for a 1-year agreement only. This was part of the scoring criteria and considered competitive in the industry.
    • The fund was clearly established with clear intentions for it to be a permanent legacy fund. That being said, annually Council approves the budget. Investments will have alternating maturity dates to ensure only a portion of capital matures each budget year.

 

The Town of Essex is responsible for certain programs and services, while the County and Province are responsible for others. The Green Bin program is a county level program and reducing the burden of this program is not within the control of the Town. Similarly, Social Housing is a Provincial Responsibility, administered by the City of Windsor and not within Town jurisdiction. 

In terms of a rebate or freeze on taxes, Council has a responsibility under the Municipal Act, 2001 to manage municipal finances in a prudent and accountable way and is not permitted to budget for a surplus or deficit. A one-time distribution would benefit existing residents, which is not in alignment with the principal of equity or fairness to current and future rate payers. Further, it would not address the Town’s ongoing infrastructure and asset-management obligations. 

The sale proceeds will help reduce the pressure that would otherwise fall on the tax levy, particularly given the significant infrastructure and asset-management gap. However, a full tax freeze would not be fiscally responsible if it meant deferring required maintenance, delaying priority capital projects, or creating larger tax increases in future years. The objective is to use the funds strategically to spread the impact on taxpayers, support steady and sustainable budgeting, and avoid sharp year-over-year increases wherever possible. 

In short, the funds are intended to benefit taxpayers by strengthening the Town’s long-term financial position, reducing borrowing and levy pressure, and helping fund priority capital needs. This approach is more sustainable than committing to a tax freeze that may not reflect the true cost of maintaining services and infrastructure. 

With a competitive procurement process, public consultation is not possible or permitted given the requirements to keep the bid information confidential, and any breach of that could have a negative consequence on the bidding process. While Council had received updates throughout the sale process over the past four years, on July 20, 2026, Administration presented the first public report following the successful closing of the sale of E.L.K. Energy.  The report supported public transparency and accountability over this significant decision, at the earliest possible opportunity. 

A competitive RFP process was conducted by an independent third party who specialized in utility performance. Criteria was set to ensure a fair bidding process, and included categories such as infrastructure plans, rate plans, employee retention and return on investment, among other important items. ENWIN scored the highest out of all bidders. 

To ensure that the Town would receive the best value through the sale, the independent third party reached out to over 50 existing utility companies to garner interest in submitting a bid to the Town. The Town received interest from 16 entities, of which 4 companies submitted valid bids. 

In 2009, the Town of Essex owned 38% of the Shares of E.L.K. Energy Inc. The Town purchased the remaining 62% of the company’s shares from Lakeshore and Kingsville, for a total cost of $13M.  This cost included repayment of shareholder loans as well as the cost of the shares. The Town financed most of this purchase through cash distribution from ELK who did so by obtaining long-term debt. 

The share purchase transaction for E.L.K. Energy Inc. (including its subsidiary E.L.K. Solutions Inc.) has officially closed effective November 28, 2025. As a result, ENWIN has assumed full management of E.L.K. Energy Inc.   

Council received a summary report on the sale transaction in an open meeting on July 20, 2026 and approved the following: 

  • The establishment of a new internally restricted Reserve Fund, entitled E.L.K. Legacy Reserve, the purpose for which is to hold the remaining closing proceeds for the sale E.L.K. Energy Inc. and E.L.K. Solutions Inc., 

  • Investment Policy Amendments which supported the new reserve and its unique purpose, 

  • The long-term investment strategy, presented by the Director, Corporate Services/Treasurer and Investment Advisors 

  • Annual investment income allocations to core infrastructure replacement (70%), new core capital projects (10%), and reinvested to grow the fund (20%). 

We treated the analysis and viewed returns on investment as “cash available” to the shareholder, whereas the initial dividend was not considered cash available, given it was used to make the purchase of the shares.

Higher historical profits should be viewed in the context of the Ontario Energy Board's documented findings. The OEB reported that E.L.K.'s 2018 regulated return on equity was 16.17%, 7.39 percentage points above its approved return of 8.78%. At the same time, the OEB's regulatory record documents compliance failures, administrative monetary penalties, and requirements for E.L.K. to implement significant improvements to its asset management, inspections, vegetation management and reliability programs. Addressing those documented deficiencies required significant operating and capital investment. Lower recent profits therefore reflect the cost of strengthening the utility and improving regulatory compliance.

Service Map

*Please note, only current E.L.K. Energy Inc. customers will be impacted. Hydro One customers will not be affected by the transition.

map showing the ELK service area.

Questions?

For additional information or questions regarding the sale and how it may affect you, please contact hydro@essex.ca.

Accountability and Transparency  

In accordance with the Municipal Act, 2001 and the Town’s Grant reporting obligations, the annual financial statements are subject to audit by an independent auditing firm. Both the Town and E.L.K. Energy Inc. underwent independent audits conducted by certified accountants, providing an additional layer of accountability and transparency over the financial information reviewed as part of the process.

Resources

Contact Us

Town of Essex
33 Talbot Street South
Essex, Ontario, N8M 1A8

519-776-7336

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