Flow-through shares for power development

Financial advantages will occur to power producers in Ontario provided that they are innovative in raising capital needed to take advantage of opportunities offered by the Energy Competition Act of 1998. In the new electricity regime, the availability of long term non-recourse debt financing supported by long term power purchasing from Ontario Hydro will probably decrease. The issuance of flow-through shares is a form of financing that could by available to them for certain projects, and there is the probability that greater equity financing will be needed. These flow-through shares can give investors immediate tax savings, a potential favorable return on their equity investment, and a means of financing certain kinds of power projects