The Consumers' Waterheater Income Fund
TSX : CWI.UN

The Consumers' Waterheater Income Fund

December 21, 2006 12:13 ET

The Consumers' Waterheater Income Fund Enters into an Agreement to Acquire Water Heater Rental Business from PowerStream

TORONTO, ONTARIO--(CCNMatthews - Dec. 21, 2006) - The Consumers' Waterheater Income Fund (the "Fund") (TSX:CWI.UN) today announced it has entered into a definitive agreement to acquire the rental water heater business of PowerStream Inc., one of the largest local electricity distribution companies in Ontario.

The assets of the business include approximately 4,100 customer water heater accounts which PowerStream has been servicing in Markham, Ontario since the merger of three local electricity utilities that created PowerStream in 2004.

"We are pleased to be adding the PowerStream water heater customers to the ones we currently serve in Ontario," said John Macdonald, President and CEO, The Consumers' Waterheater Income Fund. "Through our service provider, Direct Energy, we will provide these customers with the same level of service that our existing customers enjoy." "We are also very pleased to make our first portfolio acquisition."

Under the terms of the agreement, the transfer of assets will take place on December 29, 2006, subject to customary closing conditions. However, PowerStream will continue the billing function on a pro-rated basis until December 31, 2006 on behalf of the Fund. After that date, customer inquiries will be directed to Direct Energy Essential Home Services at 1-800-266-3939.

Direct Energy currently supports the Fund with a roster of 500 service technicians and 150 installation and replacement crews that are made available to the Fund's customers. Direct Energy will provide service support to this portfolio in consideration for 35% of aggregate rental revenues generated from this portfolio.

About The Consumers' Waterheater Income Fund

The Consumers' Waterheater Income Fund owns a portfolio of over 1.3 million installed water heaters and other assets, leased primarily to residential customers in Ontario. Direct Energy Essential Home Services provides service support to the portfolio and receives 35% of aggregate rental revenues; thereby significantly reducing the Fund's operating risk. The asset base has been generating stable and growing cash flows since its inception in the late 1950s.

About PowerStream

PowerStream Inc. is one of the largest local electricity distribution companies in Ontario, providing service to more than 225,000 residential and business customers in the municipalities of Aurora, Markham, Richmond Hill and Vaughan. It is an incorporated entity, jointly owned by the City of Vaughan and the Town of Markham.

Contact Information

  • The Consumers' Waterheater Income Fund
    Larry Ryan
    (905) 943-6226
    or
    PowerStream Inc.
    Eric Fagen
    (905) 417-6910