| Parry
Sound Hydro Corporation (“Holdco”),
and its wholly owned subsidiaries Parry Sound PowerGen
Corporation (“Genco”), Parry Sound Power Corporation
(“Wiresco”) and Parry Sound Energy Services
Corporation (“Servco”) were all incorporated
under the Ontario Business Corporations Act on October
31, 2000. On November 1, 2000, pursuant to Section 142
of the Electricity Act, 1998 and in accordance with By-Law
2000-4303 of the Corporation of the Town of Parry Sound
(the “Town”), all of the assets, liabilities,
employees, rights and obligations of the Parry Sound Public
Utility Commission (the “Commission”) were
transferred to Holdco and its subsidiaries.
The board of directors for Holdco consists
of the Mayor and four appointed members by the Town
Council. The boards of directors for the other three
companies are appointed by the Board of Directors of
Holdco.
In accordance with various regulations
of the province of Ontario, Holdco, Wiresco, Genco and
Servco became taxable entities on October 1, 2001 and
became responsible for making payments in lieu of taxes,
equivalent to federal and provincial income and capital
taxes, to the Ontario Electricity Financial Corporation,
to pay down the residual debt of the former Ontario
Hydro.
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