GUELPH — The City of Guelph is once again considering the contentious issue of merging electricity providers.

The city issued a statement recently related to the Guelph Municipal Holdings Inc. annual general meeting, in which the subject of a possible merger of Guelph Hydro with other providers emerged as a top priority.

In late 2008, city council rejected a proposed merger of Guelph Hydro with Horizon Utilities, following a lengthy and costly process. Mayor Karen Farbridge supported the merger, and at the time called its defeat a mistake, and a lost opportunity to move Guelph's Community Energy Plan forward.

The issue has returned to the forefront in light of the Ontario Ministry of Energy's Distribution Sector Review, which recommends that a number of local energy distributors, including Guelph Hydro, be consolidated into larger regional distributors.