Energy Savings Income Fund

Energy Savings Income Fund

January 24, 2008 12:57 ET

Energy Savings Income Fund Amends DRIP Program

TORONTO, ONTARIO--(Marketwire - Jan. 24, 2008) - Energy Savings Income Fund (the "Fund") (TSX:SIF.UN) announced today that it has amended the Distribution Reinvestment and Optional Cash Payment Plan (the "Plan") to reduce the minimum number of Units required to be held by Unitholders to participate in the Plan from 500 Units to 100 Units. The amended Plan will enable Unitholders holding a minimum of 100 Units to acquire additional Units of the Fund:

(a) through the reinvestment of regular monthly distributions (including the cash portion of the special distribution announced on December 18, 2007) on all or any part of their Fund Units; and

(b) once enrolled in the Plan, through optional cash payments of up to $10,000 per month per Plan participant (subject to a minimum of $500 per month) and a maximum per Plan participant of $100,000 per year.

To enroll in the Plan, Unitholders must contact the broker who is a CDS participant and who holds the Unitholder's uncertificated Units. Once enrolled, participation in the Plan will continue automatically unless terminated.

Plan Units will, at the direction and discretion of the Fund, be purchased by the Plan Agent (Computershare) through the facilities of the Toronto Stock Exchange (the "Market Purchase Option") in which case the price of the Plan Units is based in the average price for which all the Plan Units in respect a given distribution payment date were acquired OR be issued directly from the treasury of the Fund (the "Treasury Issuance Option") based on the election of the Fund in which later case the price of the Plan Units is based on the simple average closing price for Units on the 5 trading days preceding the applicable distribution payment date less a discount of 5% except that the 5% discount does not apply to Units issued pursuant to Optional Cash Payments. It is the Fund's present intention that all Units acquired using distributions will be issued from treasury.

The Fund may terminate, suspend, modify or amend the Plan on 30 days written notice to CDS and Plan participants. All modifications and amendments must receive the prior approval of the TSX.

All commissions and administrative costs associated with the operation of the Plan will be paid by the Fund. The Fund has listed 1,000,000 additional Units to accommodate the purchase of Units under the Plan.

For more information about the Plan and its terms and conditions see under Investor Information - Distribution Reinvestment Plan.

The Fund

Energy Savings' business, which is conducted in Ontario, Manitoba, Alberta, Quebec, British Columbia, Illinois, New York, Indiana and Texas, involves the sale of gas and electricity to residential, small to mid-size commercial and small industrial customers under long term fixed price contracts. By fixing the price of natural gas or electricity under its fixed price or price protection program 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 attrition, 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, rates of customer attrition, 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 or through the Fund's website at

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

Contact Information

  • 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
    Mr. Peter Bloch, C.A.
    Chief Financial Officer
    (905) 795-4206