WATER POWER LEASES - NIAGARA PARKS COMMISSION

Definitions 1. In this Regulation, “Commission” means The Niagara Parks Commission; “CPI” means, in respect of a year, the value of the Consumer Price Index for Canada (All Items) for the year, as published by Statistics Canada under the Statistics Act (Canada). O. Reg. 135/02, s. 1. Prescribed holders of water power leases 2. For the purposes of subsection 92.1 (5.1) of the Act, the following persons are prescribed holders of water power leases under the Niagara Parks Act for the following years: 1. Canadian Niagara Power Limited, for 2001. 2. OPG-Niagara Plant Group Inc., for 2001 and subsequent years. O. Reg. 135/02, s. 2. Prescribed payments for 2001 3. (1) The amount of the payments to the Commission required under subsection 92.1 (5.1) of the Act for 2001 are as follows: 1. $1,877,402.47, payable by Canadian Niagara Power Limited. 2. $4,598,962.49, payable by OPG-Niagara Plant Group Inc. O. Reg. 135/02, s. 3 (1). (2) The payments set out in subsection (1) must be made on or before April 30, 2002. O. Reg. 135/02, s. 3 (2). Prescribed payment for 2002 4. The amount of the payment to the Commission required to be made by OPG-Niagara Plant Group Inc. under subsection 92.1 (5.1) of the Act for 2002 is the amount calculated using the formula, $5,319,400.85 ×A/B in which, “A” is the CPI for 2002, and “B” is the CPI for 2001. O. Reg. 135/02, s. 4. Prescribed payments for 2003 and after 5. The amount of the payment to the Commission required to be made by OPG-Niagara Plant Group Inc. under subsection 92.1 (5.1) of the Act for 2003 and each subsequent year is the amount calculated using the formula, C × D/E in which, “C” is the amount payable by OPG-Niagara Plant Group Inc. under subsection 92.1 (5.1) of the Act for the year immediately preceding the year to which the payment relates, “D” is the CPI for the year to which the payment relates, and “E” is the CPI for the year immediately preceding the year to which the payment relates. O. Reg. 135/02, s. 5. Instalments 6. (1) OPG-Niagara Plant Group Inc. shall pay the amounts payable to the Commission under subsection 92.1 (5.1) of the Act in the following manner and at the following times: 1. On or before April 30, 2002, OPG-Niagara Plant Group Inc. shall pay to the Commission, on account of the amount payable for 2002, an amount equal to $1,773,133.60 less the amounts previously paid on account of the amount payable for 2002. 2. On or before the 16th day of every month in 2002 that is after the month of payment in paragraph 1, OPG-Niagara Plant Group Inc. shall pay to the Commission, on account of the amount payable under subsection 92.1 (5.1) of the Act for 2002, a monthly instalment of $443,283.40. 3. On or before the 16th day of every month, commencing January 16, 2003, OPG-Niagara Plant Group Inc. shall pay to the Commission, on account of the amount payable for the year in which the instalment is payable, an amount equal to, i. the amount payable by OPG-Niagara Plant Group Inc. for the immediately preceding month, if the instalment is payable on January 16, or ii. the amount equal to 1/12 of the amount payable by OPG-Niagara Plant Group Inc. for the immediately preceding year, if the instalment is payable in a month after January. O. Reg. 135/02, s. 6 (1). (2) If the amount payable for 2002 or a subsequent year by OPG-Niagara Plant Group Inc. under subsection 92.1 (5.1) of the Act exceeds the total amount paid in instalments for the year on account of that amount, OPG-Niagara Plant Group Inc. shall pay the balance for the year on or before February 16 of the following year. O. Reg. 135/02, s. 6 (2). Acknowledgement of receipt by Commission 7. (1) The Commission shall acknowledge receipt, in a form approved by the Minister of Finance, of all payments under subsection 92.1 (5.1) of the Act that are received from each prescribed holder of a water power lease in respect of a year. O. Reg. 135/02, s. 7 (1). (2) The Commission shall give the acknowledgment under subsection (1) to the Minister of Finance and to each prescribed holder of a water power lease on or before the last day of February in the year after the year to which the acknowledgement relates or on or before such later day as the Minister of Finance may specify for the year. O. Reg. 135/02, s. 7 (2). (3) Despite subsection (2), the acknowledgement relating to 2001 may be given to the Minister of Finance and to each prescribed holder of a water power lease on or before May 10, 2002. O. Reg. 135/02, s. 7 (3). Penalty 8. If OPG-Niagara Plant Group Inc. fails to pay the balance, if any, of an amount payable for a year under subsection 92.1 (5.1) of the Act by the day required under subsection 6 (2), OPG-Niagara Plant Group Inc. is liable to a penalty, when assessed, equal to 5 per cent of the unpaid amount or $6, whichever is greater. O. Reg. 135/02, s. 8. Interest 9. OPG-Niagara Plant Group Inc. is liable to pay interest at the rate prescribed by section 10, calculated and charged daily, on the unpaid portion of any amount payable under subsection 92.1 (5.1) of the Act or this Regulation from the day on which the payment is due to the day on which the amount plus the interest is received by the Commission. O. Reg. 135/02, s. 9. Rate of interest 10. (1) The prescribed rates of interest shall be determined in accordance with the following rules: 1. A base rate of interest shall be determined for January 1, 2002 and for each adjustment date after January 1, 2002 and shall be equal to the average prime rate on, i. October 15 of the previous year, if the adjustment date is January 1, ii. January 15 of the same year, if the adjustment date is April 1, iii. April 15 of the same year, if the adjustment date is July 1, and iv. July 15 of the same year, if the adjustment date is October 1. 2. The base rate of interest in effect on a particular date shall be, i. the base rate for the particular date, if the particular date is an adjustment date, and ii. the base rate for the last adjustment date before the particular date, otherwise. 3. The prescribed rate of interest payable by an entity under the Act in respect of a particular day shall be an annual interest rate that is three percentage points higher than the base rate of interest in effect on that day. 4. The prescribed rate of interest to be paid or allowed to an entity under the Act, in respect of a particular day before July 1, 2006, shall be an annual interest rate that is two percentage points lower than the base rate of interest in effect for that day. 4.1 The prescribed rate of interest to be paid or allowed to an entity under the Act, in respect of a particular day after June 30, 2006, shall be an annual interest rate that is three percentage points lower than the base rate of interest in effect for that day. 5. For an overpayment that results from a decision of the Minister of Finance or a court on an objection to, or an appeal from, an assessment or a statement of disallowance, the prescribed rate of interest to be paid or allowed in respect of a particular day is the base rate of interest in effect for that day. O. Reg. 135/02, s. 10 (1); O. Reg. 227/06, s. 1. (2) In this section, “adjustment date” means January 1, April 1, July 1 or October 1; “average prime rate”, on a particular date, means the mean, rounded to the nearest whole percentage point, of the annual rates of interest announced by each of the Royal Bank of Canada, The Bank of Nova Scotia, the Canadian Imperial Bank of Commerce, the Bank of Montreal and The Toronto-Dominion Bank to be its prime or reference rate of interest in effect on that date for determining interest rates on Canadian dollar commercial loans by that bank in Canada. O. Reg. 135/02, s. 10 (2). 11. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 135/02, s. 11.