Business
ERCO Valdosta Power Contract Update
ERCO Valdosta Power Contract Update.
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\n\nTSX: SPF.UN\n\nCALGARY, Oct. 3 /CNW/ - Superior Plus Income Fund (the \"Fund\") today\nannounced the results of the review by the State of Georgia Public Service\nCommission (PSC) regarding the power supply contract for the 100,000 tonne\nannual capacity ERCO Worldwide Valdosta, Georgia sodium chlorate facility. The\nPSC has voted to approve the supply of electricity by Georgia Power pursuant\nto their industrial interruptible tariff for the supply of power in that\nregion. Based on testimony by Georgia Power at the PSC hearing, the tariff\nrate will be in the mid US$40's/MW, using US$10/GJ as the assumed natural gas\ncost in their tariff calculations.\nGrant Billing, Chairman and Chief Executive Officer, said \"This is a\npositive first step in establishing a secure source of long term power for the\nValdosta facility. The plant will operate as swing facility when power prices\nare favourable and can be supported in the sodium chlorate market place. We\nwill now be in a position to negotiate prices for our sodium chlorate sales\nfrom this facility for January 2007, based on our knowledge of the amount of\nthe increase to our power costs.\"\nDepending on the results of the final negotiation of the power supply\nagreement and the prices for the 2007 sodium chlorate sales agreements, these\nevents should have a positive impact on our previous ERCO guidance and may\nincrease our 2007 estimate of distributable cash flow contribution for ERCO\nWorldwide towards the mid to upper end of the $60 to $65 million range.\n\nAbout the Fund\n--------------\nThe Fund holds 100% of the limited partnership units of Superior Plus LP,\na limited partnership formed between Superior, as general partner and the Fund\nas limited partner. Superior Plus LP has four Canadian based operating\ndivisions: Superior Propane is Canada's largest distributor of propane,\nrelated products and services; ERCO Worldwide is a leading supplier of\nchemicals and technology to the pulp and paper industries, a regional Midwest\nsupplier of chloralkali products and the third largest producer of potassium\nproducts in North America; Winroc is the seventh largest distributor of walls\nand ceilings construction products in North America; and Superior Energy\nManagement provides fixed price natural gas supply services in Ontario and\nQuebec. In addition, as part of ...