ABOUT US
19. related party transactions
The Corporation and its subsidiaries provide certain services to the City of Ottawa in the normal course of business at commercial rates.
For the year ended December 31, 2007, the Corporation earned revenues related to the sale of electricity, telecommunications products and services, the provision of street lighting services and energy management consulting in the amount of $29,210,000 (2006 – $30,209,000) to the City of Ottawa.
For the year ended December 31, 2007, the Corporation purchased certain services related to water and sewer charges, fuel and permits from the City of Ottawa in the amount of $1,031,000 (2006 – $735,000); and property taxes in the amount of $1,693,000 (2006 – $1,743,000). By agreement, Energy Ottawa has agreed to repair the City’s gas collection system at the Trail Road landfill site in Ottawa, Ontario. Royalties related to this in the amount of $118,000, (2006 – $1,740,000) are included in deferred costs.
The Corporation owns 28.33% of Chaudière Water Power Inc. (“CWPIâ€ÂÂÂÂ), a company incorporated to act as an agent for the principals of CWPI, with the mandate to control, operate and maintain the Chaudière dam. By agreement, all costs incurred by CWPI are recovered from the principals based on their pro‑rata interest in CWPI. The Corporation’s share of these costs, included in operations and maintenance expense and capital assets, are as follows:
| 2007 | 2006 | |
| Operating and maintenance expenses | 399 | 382 |
| Capital assets | 83 | 390 |
The Corporation and IGRS jointly control PowerTrail. By agreement, IGRS provided construction and management services to PowerTrail in the amount of $1,604,000 (2006 – $4,850,000).
20. SUBSEQUENT EVENTS
Sale of Subsidiary
As described in Note 5, on February 25, 2008, the Corporation entered into an agreement to sell Telecom Ottawa to Atria Networks LP for gross proceeds of $63 million.Dividends
On April 10, 2008, the Board of Directors of the Corporation declared dividends in the amount of $xx,000,000 related to 2007 consolidated net income. The dividends are payable on April 18, 2008.