Results of Operations
Earnings in the period were generated primarily from the Wind Power assets. The Wind Power assets were fully operational during the fourth quarter with the Chin Chute wind project commencing operations on October 31, 2006. These assets generated approximately 52,200 MW hours of electricity during the period since acquisition on October 1, 2006.

NRGreen’s Kerrobert facility commenced commercial operations on December 29, 2006, generating electrical power for SaskPower.

Strategy
The objective of Green Power is to produce reliable, cost effective electricity via alternative energy sources to ensure stable, relatively predictable cash flow streams for the Fund.

Capital Expenditures
Capital expenditures in 2006 were $10.1 million (2005 – nil) related primarily to enhancement capital for NRGreen’s Kerrobert waste heat recovery facility and three new waste heat recovery facilities at Alameda, Estlin, and Loreburn, Saskatchewan. In 2007, Green Power will focus on completing the three new facilities and expects commercial operations to commence mid-2008. The Fund’s 50% share of the cost of this project is expected to be $22.7 million in 2007. The Fund expects to meet this funding requirement through use of the credit facility.

Business Risks
The risks identified below are specific to the Green Power. General risks that affect the Fund as a whole are described under Risk Factors.

Variable Wind Resource
The generation of electricity associated with the Fund’s interest in Wind Power is dependent on the wind resource at each location. Although extensive long-term wind studies have been conducted, there is no assurance that the wind resource, and thus electricity generation, at each location will meet expectations.

Commodity Price Risk
The primary source of fixed price revenue for each wind project is a single counterparty. Thus the stability of the Fund’s revenue from Wind Power is dependent upon the ability of these counterparties to pay their monthly charges. If these counterparties are unable to fulfill their obligations under their purchase agreements and an alternate counterparty is not available, Wind Power would be exposed to variable power prices. This risk is mitigated by investment grade requirements of the counterparties involved.

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