Content
Corporate
The Corporate segment includes management and administrative costs, corporate financing costs, distributions to ECT preferred unitholders, business development activities not attributable to a specific business segment and other corporate costs including current and future income taxes.
|
Year ended December 31, |
2008 |
2007 |
(millions of dollars) |
||
|
Costs before the impact of tax changes |
(59.8) |
(58.3) |
|
Revalue future taxes due to tax rate changes |
– |
0.6 |
|
Future taxes due to Tax Fairness Plan |
– |
(2.1) |
|
Total costs |
(59.8) |
(59.8) |
Corporate costs of $59.8 million were consistent with the comparative year due to offsetting factors. ECT preferred unit distributions and incentive fees increased with the 7.5% increase in regular monthly unitholders’ distributions that was announced in May of 2008. Offsetting this in 2008 was lower interest expense and income taxes. Interest expense decreased as a result of the establishment of a separate credit facility for NRGreen and the receipt of additional funds received via the CESCA claim. Payments were made on the credit facility in the year using the return of equity received from NRGreen subsequent to the establishment of the NRGreen facility. Corporate costs in the prior year reflected future tax expense of $1.5 million related to future tax rate reductions in 2007 as well as the Tax Fairness Plan, Bill C-52, receiving Royal Assent in June of 2007.