Goderich Hydro is asking council for support in its attempt to find a partner.
Board member Duncan Jewel says the Ontario Energy Board is putting pressure on small utilities to become bigger - either through a sale to a larger company or a merger. The Energy Board believes a minimum size would have about 30,000 customers.
Jewell says the choices for Goderich Hydro are: remain the same and be forced to upgrade, which would increase costs to customers; sell to a larger utility like Hydro One; or merge with another utility.
He believes a merger is the best option and he's suggesting the most appropriate partner would be Erie-Thames, which is based in Ingersoll and already serves Clinton and Mitchell.
Goderich council is expected to reach a decision by late October.