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NewsComment by MRPC manager Scott Newton

Comment by MRPC manager Scott Newton

Mississippi River Power Corporation Logo
by Scott Newton

Editors’ Note: Scott posted this as a comment on the article MRPC gives over $383,000 in interest and dividend payments to town. As subscribers do not automatically receive comments if they don’t click through to the site, we thought this important enough that everyone should see it. 

As mentioned in the article, MRPC was incorporated in 2000,
after the Electricity Competition Act 1998 forced the Almonte Public Utilities
Commission (PUC) to split its generation and distribution assets and
incorporate them as private corporations. The assets of the old Almonte PUC, which was formed in 1908, were publicly-owned. The old PUCs were self-sufficient. Rates were approved by the Province. Profits were re-invested in the electricity infrastructure in Town.

The Electricity Competition Act dictated that the generation
assets of Almonte PUC be transferred to the Town of Mississippi Mills, which in
turn had to transfer them to a new corporation (Mississippi River Power Corp.)
set up to run the generation side of the former PUC.

By transferring the generation assets to MRPC, the Town
received a Promissory Note from MRPC for the Net Book Value of the assets at
the time of the transfer. The value of the Promissory Note is $2,388,654. The
amount of the Promissory Note does not decrease. Since 2003 MRPC has been
paying the Town annual interest on the promissory note of about 5% (roughly
$120,000). As of the end of 2015, MRPC has paid over $1.7M in interest payments
to Mississippi Mills.

In addition to the promissory note for the net book value of
the assets, Mississippi Mills also received 100% of the shares in MRPC. There
were 200 common shares subscribed for by Mississippi Mills at $10 per share,
for a total of $2,000. That amount was deducted from the Net Book Value of the generating
assets prior to issuance of the promissory note. A dividend of $225,000 was
paid to Mississippi Mills in 2015. Similar dividend payments will be made going
forward when available and declared.

Please feel free to contact me by telephone at (613)256-2403,
by email at snewton@mississippiriverpower.com or stop by the office at 28 Mill
Street, if you (or anyone else) have any further questions about anything
relating to Mississippi River Power Corp.

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