TORONTO, ONTARIO--(CCNMatthews - May 25, 2007) - Energy Savings Income Fund (TSX:SIF.UN) announced the closing on May 24, 2007 of the acquisition of Just Energy Texas LP.
The purchase price of US$34 million was allocated as to US$16 million in cash and as to US$18 million in Energy Savings Income Fund units. The units are subject to the terms of an escrow agreement, will be issued no later than October 9, 2007 and will vest over a three year period.
The Fund
Energy Savings' business, involves the sale of natural gas and electricity to residential, small to mid-size commercial and small industrial customers under long term, irrevocable fixed price contracts (price protected for electricity). Energy Savings offers natural gas in Manitoba, Quebec, British Columbia, Illinois and Indiana, electricity in Texas and both gas and electricity in Ontario, Alberta and New York. By securing the price for natural gas or electricity under such contracts for a period of up to five years, Energy Savings' customers reduce or eliminate their exposure to changes in the price of these essential commodities. Energy Savings, which commenced business in July of 1997, derives its margin or gross profit from the difference between the fixed price at which it is able to sell the commodities to its customers and the fixed price at which it purchases the matching volumes from its suppliers.
Non GAAP Measures
Management believes the best basis for analyzing both the Fund's operating results and the amount available for distribution is to focus on amounts actually received ("seasonally adjusted"). Seasonally adjusted analysis applies solely to the Canadian gas market (excluding Alberta). In Canada (excluding Alberta), Energy Savings receives payment from the LDCs upon delivery of the commodity not when the customer actually consumes the gas. Seasonally adjusted analysis eliminates seasonal commodity consumption variances and recognizes amount available for distribution based on cash received from the LDCs.
Forward-Looking Statements
The Fund's press releases may contain forward-looking statements including statements pertaining to customer revenues and margins, customer additions and renewals, customer consumption levels, distributable cash and treatment under governmental regulatory regimes. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to, levels of customer natural gas and electricity consumption, rates of customer additions and renewals, fluctuations in natural gas and electricity prices, changes in regulatory regimes and decisions by regulatory authorities, competition and dependence on certain suppliers. Additional information on these and other factors that could affect the Fund's operations, financial results or distribution levels are included in the Fund's annual information form and other reports on file with Canadian securities regulatory authorities which can be accessed through the SEDAR website at www.sedar.com or through the Fund's website at www.esif.ca
FOR FURTHER INFORMATION PLEASE CONTACT:
Energy Savings Income Fund
Ms. Rebecca MacDonald
Executive Chair
(416) 367-2872
Energy Savings Income Fund
Mr. Brennan Mulcahy
Chief Executive Officer
(905) 795-4200
Energy Savings Income Fund
Ms Mary Meffe, C.A.
Chief Financial Officer
(905) 795-4206
Website: www.esif.ca
