Updated: Pacific West Commercial Corp. reaches 7-year deal with Nova Scotia Power
April 27th, 2012 | Posted in Financial News | 2 comments ยป
The Port Hawkesbury paper mill is one step closer to reopening now that its new owner, Pacific West Commercial Corp., has reached a seven-year tentative energy agreement with Nova Scotia Power.
The tentative agreement will be submitted to the Nova Scotia Utilities and Review Board for approval.
The agreement will see Nova Scotia Power provide the mill with hourly power rate projections a week in advance so the plant can decide how much of its facility to operate.
The tentative agreement creates a partnership between the mill and Nova Scotia Power. If approved, Nova Scotia Power will hold both preferred and common shares in the mill.
Nova Scotia Power will receive dividends reflecting the value of the energy used by the mill. Those payments will also include a $2 per megawatt hour contribution to the utility’s fixed costs.
Robin McAdam, Nova Scotia Power’s executive vice-president of customer services, said the utility would have a 30% profit participation rate in the mill.
Nova Scotia Power is confident that this agreement will prevent their other customers (including households) in the province from having to subsidize the the mill.
The approval will take approximately 3-4 months. Some aspects of the agreement will require approval from the Canada Revenue Agency.
Sources:
Tentative energy deal reached for idled paper mill in Cape Breton (The Canadian Press)
Stern Partners, NSP officials reach agreement on power for mill (101.5 The Hawk)
NewPage buyer reaches N.S. Power deal (CBC)
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I wonder what “Some aspects of the agreement will require approval from the Canada Revenue Agency” means. I wonder does it have anything to do with the 1 billion in tax credits that Stern will slide over to NSP in return for a favourable power deal. This deal was dreamt up in Enron University Economics 101.
It’s amazing how Stern and his band of crooks can buy a company, inherit 1 billion dollars in tax credits, and say no we are not responsible for the pension plan or for any severance to former employees. They bought the company…not just the assets (equipment)…and in doing so are legally responsible for all debts including the pension plan. How are the courts and Dickhead’s NDP government letting them get away with this…and not only letting them get away with it, but throwing additional millions at them to help them get away with this.
And when the dust settles, and NSP has 1 billion dollars of tax credits in their deep pockets, it will mean only one thing….the tax-payers of NS will have to make up for the reduction in taxes that NSP doesn’t have to pay. So, in a nutshell, thank you very much Mr. Stern and Mr. Dexter was increasing the provincial debt by 1 billion dollars.
In a shorter form……Stern, the saviors of Stora are chatting a power deal that will cost the regular joe the difference with NSPC as they will use this as an excuse to keep their bottom line the same…so break to Stern, cost to 1 Million Nova Scotians.
It will get worse soon after with Mersey seeing this lill fudgicle reward the far side of the province and with the upcoming shuts will say…Hey what about us?…..we are on hard times again Mr Nova Scotia.
I guess my real question is…..and everybody, all 1 million of us, better ask, why in gods name are we throwing 100s of million dollars at just 2 paper mills that in total only directly employ only about 500 at best???????…That is all there is now and I remeber when this number was more than double back in the 80′s/90s…..Its just the most ridiculous formula of proper money mangement on the governments behalf.