Little response to draft power plan

Ruapehu Bulletin, Volume 10, Issue 459, 27 October 1992, Page 5

Little response to draft power plan

Only two submissions had been received by Friday on King Country Energy's draft establishment plan. More than 100 copies of the plan have been sent to interested parties. The draft plan, required under the Energy Companies Act 1992, calls for 100 percent customer trust ownership of the shares in the new power company that will take over control of King Country Energy's assets on 1 April next year. Control of the shares will be in the hands of

five trustees - to be appointed by the board in the first instance, but then elected annually after three years, with two trustees retiring each year by rotation. It is intended that dividends will be retumed to the customers in the form of rebates. The proposed trust deed will give the trustees power to incustomers if a greater share dilution is seen to be needed. Likewise, the new company will be allowed a maximum debt/equity

ratio of 50:50. In the proposed statement of coxporate intent which is part of the draft establishment plan, a net annual rate of return on shareholders funds of 6.2 per cent is envisaged in the first year, rising to 7.4 and 8.1 per cent in subsequent years.