Renfrew Power Generation

RPG was formed in 2000 as a result of Bill 35, the Green Energy Act. Ontario's decision to create a competitive electricity market required municipally-owned facilities such as Renfrew Hydro-Electric Commission to separate the generation function from the distribution function and form two new for-profit companies: RPG, and Renfrew Hydro Inc. The C... orporation of the Town of Renfrew is the sole shareholder of RPG, owning 100% of the shares. RPG's value was split into: 50% debt and 50% equity. As the shareholder, The Corporation of the Town holds the debt in the form of a promissory note, and the equity shares. RPG pays interest on the debt at a rate of 7.25% annually to the Town. RPG currently provides an interest payment of $67,000 to the Town of Renfrew. RPG's three-member Board of Directors oversees the management of RPG. The Board reports to its sole shareholder, the Corporation of the Town of Renfrew. Council of the Town of Renfrew is the proxy shareholder. RPG Directors are recommended by the Board and are appointed annually by the shareholder's proxy shareholder, Renfrew Town Council. Day-to-day operations are managed by an onsite staff. RPG-a for-profit company-owns and operates three power generating plants with two dams in Renfrew, and three control dams on Round Lake, Golden Lake, and Lake Clear. They are all part of the Bonnechere River system. RPG's assets are valued at $27,796,358.86. RPG will repay its $24.7 million loan required to construct the Thomas Low Generating Station and repair the Upper Dam with revenues generated by the new long-term contract with the Independent Electricity System Operator. RPG's bylaws require the Corporation of the Town to act as guarantor of the loan. The term of the loan is 20 years. An annual dividend payment to the Town will be determined in 2016 once the new generation facilities have been operational for a full year.Read More