Electricity Distribution Lease to Canadian

The city of Port Colborne completed the lease of
the electricity distribution assets of Port Colborne
Hydro Inc. to Canadian Niagara Power Inc. on
April 15, 2002. This transaction is the first lease
of electricity distribution assets in Ontario. Under
the terms of the lease agreement, Canadian
Niagara Power assumes all operational
responsibilities for Port Colborne’s electricity
distribution system. Canadian Niagara Power
holds an option to purchase the business for its
fair market value at the end of the 10-year lease
term. Monthly lease payments totalling $15.3
million will be made by Canadian Niagara Power
to the city’s local distribution company, Port
Colborne Hydro, over the 10-year term of the
lease.

Canadian Niagara Power and Canadian Niagara
Power Company Limited were represented by
Arthur Shiff, Patrick Monahan and Brian Calalang
(corporate), Gray Taylor (environmental),
Gabriella Lombardi (real estate) and Colin
Campbell (tax) of Davies Ward Phillips &
Vineberg LLP.

The city and Port Colborne Hydro were
represented by Borden Ladner Gervais LLP, with
a team led by Mark Rodger and consisting of
Michael Shadbolt, Andrew Harrison and Liz
Jordan (corporate), Paul McCarten (real estate),
Maria Scullion and Kevin Fritz (tax), Rick Coburn
(municipal and environmental) and James
Sidlofsky and Tracy Davis (regulatory).