Business
Superior Plus Enters High Growth Electricity Market in Ontario and Expands Into British Columbia Natural Gas Market
Superior Plus Enters High Growth Electricity Market in Ontario and Expands Into British Columbia Natural Gas Market.
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\nTSX: SPF.UN\n\n\nCALGARY, June 13 /CNW/ - Superior Plus Income Fund (the "Fund") announced\ntoday that its wholly owned indirect subsidiary Superior Energy Management\nElectricity LP ("SEM") is entering the high growth fixed price retail\nelectricity market in Ontario and has entered into a long term electricity\nsupply agreement with Bruce Power L.P. ("BPLP"), Ontario's largest independent\nelectricity generator.\n\n\nUnder the agreement, BPLP has agreed to supply electricity ("Supply") to\nsupport SEM's fixed priced customer contracts in the Ontario market. The deal\nis structured with an initial term of three years and may renew annually\nthereafter. During the term of the agreement, SEM will purchase Supply from\nBPLP for customer contract terms of up to five years and the obligation to\nprovide Supply for the term of such contracts will survive the termination of\nthe agreement.\n\n\nElectricity sales will be made by existing sales channels allowing for\ngreater channel productivity and increased revenue per customer. As SEM enters\nthese new business channels, they will incur start-up costs in the initial\nperiod and realize enhanced cash flow as they begin delivering to their\ncustomers. These costs and cash flow are within their operating distributable\ncash flow guidance of $12 - $15 million for 2007, and $15 - $18 million for\n2008.\n\n\n"Today's announcement represents another key component of our strategy to\ngrow and diversify our business", said Greg McCamus, President of SEM. "We\nwill be leveraging our strong presence in the Ontario gas market by bringing\nnew innovative electricity price protection plans to Ontario residential\nconsumers and small businesses. In addition, on May 1 2007, we successfully\nexpanded into the newly deregulated British Columbia residential gas market as\npart of our organic growth initiative."\n\n\nGrant Billing, CEO Superior Plus stated: "We are very pleased to be\nentering the electricity market and expanding our natural gas business into\nthe new BC market with our highly experienced team at Superior Energy\nManagement. Penetration of these strong markets is expected to allow the Fund\ngrowth opportunities resulting in greater stability of its distributions and\nincreased unitholder value over the long term.&q...