A merger of four utilities in Hamilton and the GTA will mean better efficiency, says the companies behind the potential deal, but even Premier Kathleen Wynne won't guarantee rates for customers will go down.

Horizon Utilities is among a consortium of utilities angling to buy the assets of Hydro One Brampton for either $607 million or in return for giving the province a 17 per cent stake in a new mega-utility serving 950,000 customers in Hamilton and the GTA.

"My hope is that by making these changes we will have a better company, we will have a better and more efficient distribution system and that as a result of that we will see that there's control of hydro rates within the system," Wynne said about the sale of a majority of Hydro One and the proposed local merger.

"I can't guarantee that, but ... there are improvements in distribution that should provide downward pressure on prices," the premier added

A number of city councillors say they have serious problems with the potential merger and one is urging his colleagues to reject the deal outright.

A joint news release issued Thursday morning by the four utilities says the new company would serve almost a million customers in Hamilton, St. Catharines, York Region, Simcoe County and Peel Region, making it the biggest municipally owned utility in Canada.

"A proposed merger between Enersource Corporation, Horizon Utilities Corporation, Hydro One Brampton Inc. and PowerStream Inc. would allow a new, larger company to use its collective resources to deliver a favourable impact on distribution rates, more efficient services and innovative technology for customers," reads the release.

Spokesperson John Crean said the new utility would be positioned to offer "competitive rates, better infrastructure and future investment in technology" because it would have economies of scale. "Smaller companies just will not have the capacity or the access to capital to investment in improvements, innovation or technology."

The group would build one company out of the assets of the previous four and have "committed to bring all the necessary resources together to get this done as quickly as possible," said Crean, who has been hired as a spokesperson by the consortium.

Inquiries made to Horizon Utilities were referred to him.

The proposed merger is part of a review of government-owned assets in a bid to generate some cash for major infrastructure and transit projects. A panel appointed by Wynne recommended the four-way merger, along with the sale of a 60 per cent stake in Hydro One for $9 billion. The financial aspects of a merger deal must be worked out by July 31.

Horizon serves more than 240,000 customers in Hamilton and St. Catharines and is owned by Horizon Holdings Inc., which is jointly owned by the two municipalities.

Both the board of Horizon and city council, sitting as the Hamilton Utilities Corporation, must approve a deal.

Ward 4 Coun. Sam Merulla has drafted a notice of motion to oppose the merger that he'll present when the matter comes before councillors.

"We control our own destiny right now," he said. "There is no way any responsible governing body would give majority control over an essential service to another municipality."

Horizon pays a yearly dividend to the city: $11.4 million in 2014 and 2013 and $11.8 million in 2012.

Hamilton Mayor Fred Eisenberger, who sits on the Horizon board, says the numbers aren't in that would allow him to make a decision.

"There is due diligence needed, but we've have positive experiences with mergers in the past," he said, pointing to the union of the utilities in the former towns that amalgamated with Hamilton and the merger with St. Catharines in 2005. "They created efficiencies to keep costs down for customers."

Eisenberger also said councillors have been assured that potential job losses can be handled through attrition.

Flamborough Coun. Judi Partridge doesn't buy that bigger will mean better service for Hamilton.

She would rather see Hydro One territory within Hamilton's boundaries merged with Horizon. She says her constituents under the provincial utility get much poorer response times and customer service than those with Horizon.

"Horizon works very well. It's probably one of the most efficient and most profitable utilities and I would be concerned about losing that."

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Mountain Coun. Tom Jackson said he's been supportive of previous mergers.

But he wants the name Horizon to stay and the headquarters to remain in Hamilton. He figures there will likely be a day when there are only five to 20 utilities left in the province.

"I want Horizon to be among them. It's homegrown in Hamilton and I'm proud of that."