Energy Savings Income Fund
TSX : SIF.UN

Energy Savings Income Fund

November 15, 2007 12:04 ET

Energy Savings Announces Settlement With Planet Energy

TORONTO, ONTARIO--(Marketwire - Nov. 15, 2007) - Energy Savings Group (TSX:SIF.UN)(the "Company"), the Ontario-based marketer of long term, fixed price or price protected natural gas and electricity contracts, announced today that it has reached a settlement that resolves its lawsuit filed in British Columbia against Planet Energy (B.C.) Corp. ("Planet Energy") and its principal officers, Paul De Vries, Chris Gaffney and David Ellis. The litigation concerned the enforcement of certain non-competition and fiduciary obligations of the principal officers of Planet Energy in connection with their former employment by the Company.

According to the terms of the settlement, the Company and Planet Energy clarified the scope, term and application of the non-compete and non-solicit elements of the agreements; Planet Energy has agreed to remit a payment to the Company; and Planet Energy agreed to suspend its marketing efforts in the small volume B.C. market until July 2009.

The Company will continue to be vigilant in enforcing contractual non-compete obligations in all jurisdictions in which it operates.

The Fund

Energy Savings' natural gas business, which is conducted in Ontario, Manitoba, Alberta, Quebec, British Columbia, Illinois, Indiana and New York, involves the sale of gas to residential, small to mid-size commercial and small industrial customers under long term, fixed price contracts. Energy Savings also supplies electricity to Ontario, Alberta, New York and Texas customers. By fixing the price of natural gas or electricity under Energy Savings' contracts for a period of up to five years, Energy Savings' customers offset 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.

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.

The Toronto Stock Exchange has neither approved nor disapproved of the contents of this release.

Contact Information

  • Energy Savings Income Fund
    Mr. Brennan Mulcahy
    Chief Executive Officer
    (905) 795-4200
    or
    Energy Savings Income Fund
    Mr. Ken Hartwick
    President & Chief Financial Officer
    (905) 795-3557
    Website: www.esif.ca