Just Energy Income Fund

Just Energy Income Fund

January 25, 2010 08:20 ET

Just Energy Income Fund Finalizes Amount of Special Distribution

TORONTO, ONTARIO--(Marketwire - Jan. 25, 2010) - Just Energy Income Fund ("the Fund") (TSX:JE.UN) announced today based on a final determination of its undistributed income on hand at December 31, 2009, that the amount of the special distribution will remain at $0.20 per unit which is the amount declared and estimated in December 2009.

The $0.20 special distribution will be payable in cash on January 31, 2010 to unitholders of record December 31, 2009.

By making all of the Fund's taxable income that has not yet been distributed payable to its unitholders, the special distribution ensures, that as required by The Fund's Amended and Restated Declaration of Trust, the Fund will not be liable to pay income taxes in respect of its taxation year ending December 31, 2009. This special distribution has been necessitated primarily as a result of the successful performance of the Fund during 2009.

Executive Chair Rebecca MacDonald stated, "This Special Distribution reflects both the solid operating performance and continued growth of Just Energy. The $0.20 payment is over and above the $1.24 regular distribution paid over the same period. The amount of the payment reflects our very strong results in calendar 2009, a challenging economic period where many companies saw very weak performance. Just Energy's predictable, reliable growth business has again shown its ability to generate stable and growing returns for our Unitholders under all economic conditions and market price environments."

Income Tax Implications

The special distribution is intended to ensure that the Fund will not be liable to pay income tax under Part I of the Income Tax Act for 2009. In general, taxable Canadian residents who hold units will be required to include the special distribution in income for their 2009 taxation year.

Non-resident holders of the units will be subject to applicable Canadian withholding tax on the $0.20 special distribution. 

Comments on the tax implications of the special distribution are provided as general information only. They are not intended to be legal or tax advice to any particular unitholder. All unitholders should consult legal, business and tax advisors about the tax implications of the special distribution.

The Fund

Just Energy's business involves the sale of natural gas and/or electricity to residential and commercial customers under long-term fixed-price and price-protected contracts through its subsidiaries. By fixing the price of natural gas or electricity under its fixed-price or price-protected program contracts for a period of up to five years, Just Energy's customers offset their exposure to changes in the price of these essential commodities. Just Energy, which commenced business in 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 associated volumes from its suppliers.

Just Energy also offers "green" products through its Just Green energy products. The electricity Just Green product offers the customer the option of having all or a portion of his or her electricity sourced from renewable green sources such as wind, run of the river hydro or biomass. The gas Just Green product offers carbon offset credits which will allow the customer to reduce or eliminate the carbon footprint for their home or business. Management believes that these products will not only add to profits, but also increase sales receptivity and improve renewal rates.

In addition, through National Home Services, Just Energy sells and rents high efficiency and tankless waterheaters and through Terra Grain Fuels, Just Energy produces and sells wheat-based ethanol.

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 www.sedar.com or through the Fund's website at www.je-un.ca.

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

Contact Information

  • Just Energy Income Fund
    Ms. Rebecca MacDonald
    Executive Chair
    (416) 367-2872
    Just Energy Income Fund
    Ken Hartwick C.A.
    President and Chief Executive Officer
    (905) 795-3557
    Just Energy Income Fund
    Beth Summers C.A.
    Chief Financial Officer
    (905) 795-4206