Royal Utilities Income Fund

Royal Utilities Income Fund

January 22, 2007 15:20 ET

Royal Utilities Income Fund Announces Increase in Cash Distribution and January 2007 Distribution

TORONTO, ONTARIO--(CCNMatthews - Jan. 22, 2007) - Royal Utilities Income Fund (the "Fund") (TSX:RU.UN) announced today an increase in its monthly cash distribution by 1% from $0.07917 to $0.07997 per unit, effective January 22, 2007. This increase is supported by the Fund's strong performance since its initial public offering in June 2006.

The Fund's Board of Trustees has approved a cash distribution of $0.07997 per unit, payable on February 15, 2007, to unitholders of record as of January 31, 2007.

The Fund also announced that Prairie Mines and Royalty Ltd. has reached an agreement with TransAlta Utilities Corporation to extend the Highvale and Whitewood mining contract through to the end of 2009. The Highvale and Whitewood contract mines currently supply thermal coal to the Sundance, Keephills and Wabamun generating stations owned by TransAlta Utilities Corporation. Highvale's annual production capacity is 13.0 million tonnes and Whitewood's is 1.4 million tonnes.

About Royal Utilities Income Fund

The Fund is an unincorporated, open-ended, limited purpose trust established under the laws of Alberta. The Fund indirectly holds all of the common shares of Prairie Mines and Royalty Ltd. (the "company"), which is the largest thermal coal producer in Canada. The company owns and operates the Paintearth, Sheerness, Genesee (50% joint venture interest), Poplar River, Boundary Dam and Bienfait mines, and operates the Highvale and Whitewood mines under contract. A total of 37 million tonnes of coal was produced by the company in 2005.

The company also holds a portfolio of mineral rights located in Alberta and Saskatchewan on which it earns royalties from the production of coal and potash.

The company's revenue is derived from two principal sources: the supply of thermal coal under long-term contracts with the major electric utilities in Alberta and Saskatchewan, and royalty payments received from certain utility customers and other parties based on coal and potash production.

Contact Information

  • Royal Utilities Income Fund
    Investor Relations
    (416) 934-7655