Last night’s Parry Sound Hydro Hydro Corporation annual general meeting provided few surprises. The meeting provided a bit of an update on the merger discussions with Lakeland Power as well as the audited financials for 2012.
Concerning the merger – the discussions are still ongoing. No timeline was offered for completion of the deal but my sense is that the deal will get done. The Board seems confident that it will capture fair value for Parry Sound that will provide an important source of revenue going forward. The merger option is being explored because the Town does not have the financial means to underwrite generation capacity expansion at the Cascade/River Street facility. I estimate the expansion project will cost on the order of $15 million, plus or minus a few million. Parry Sound already has too much money tied up in debentures related to road, water and sewage infrastructure upgrades.
The dollar and cents of Parry Sound Hydro Corporation in 2013 pretty much matched up with the results for 2011. Total revenue rose to $3.6 million. Net income dropped to $7,353, largely I suspect as a result of the expansion project planning costs. It was mentioned that these expenses were about $700,000 over the past two years, and have totalled about $2 million to date.
Some figures from the meeting:
1. There are 2,800 residential customers.
2. There are 3,400 smart meters and 500 general service meters.
3. There were 30 planned, and 8 unplanned outages in 2012.
4. The power plant generated about 5.7 million KWH in 2012, revenues reached a new high of $417,000.
That pretty much wraps up the meeting. You were missed, there were lots of empty seats. The auditor’s report is available upon request.
Money Does Flow Like Water (Parry Sound in Black & White)