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The Energy Rate Stabilization Act
This is an unofficial version.
If you need an official copy, use the bilingual (PDF) version.

This version is current as of December 12, 2017.
It has been in effect since July 22, 1991.

Note: Earlier consolidated versions are not available online.


 

C.C.S.M. c. E115

THE ENERGY RATE STABILIZATION ACT

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Definitions

1           In this Act,

"Canadian equivalent rate" where used to refer to the Canadian equivalent rate of a foreign debt means the interest rate that, in the opinion of the Minister of Finance, the issuer of the foreign debt would have been required to undertake to pay if the debt had been issued in Canada for the Canadian principal equivalent thereof on the day the foreign debt was issued repayable in Canadian dollars and, where the context requires, means the amount of interest in Canadian dollars that would have been required to be paid in a fiscal year if the Canadian principal equivalent of the foreign debt had been raised in Canada; (« taux équivalent canadien »)

"Canadian principal equivalent" where used to refer to the Canadian principal equivalent of a foreign debt means, the amount in Canadian dollars that, on the basis of the rate of exchange that applies to the foreign debt, equals the face value in the currency or unit of monetary value of the foreign debt; (« principal équivalent canadien »)

"fiscal year" means the fiscal year of the government; (« exercice »)

"foreign currency" does not include United States dollars; (« devise étrangère »)

"foreign debt" means the bonds, debentures, notes and loans repayable in a foreign currency or a foreign unit of monetary value that were issued and sold prior to April 1, 1987

(a) by Manitoba Hydro, or

(b) by the government for the purposes of making or funding advances to Manitoba Hydro,

and includes any bond, debenture, note or loan repayable in a foreign currency or foreign unit of monetary value issued and sold or arranged by Manitoba Hydro or the government for the purpose of payment, refunding, refinancing or renewal in whole or in part of any bond, debenture, note or loan issued and sold or arranged by Manitoba Hydro, or by the government for the purpose of making or funding advances to Manitoba Hydro, and, where the context requires, means the amount in Canadian dollars of the debt due or accruing due under such bonds, debentures, notes and loans; (« dette extérieure »)

R.S.M. 1987 Supp., c. 15, s. 1, 2, 3 & 4; S.M. 1988-89, c. 11, s. 7.

2(1)         Repealed, S.M. 1989-90, c. 17, s. 2.

2(2) and (3) Repealed, R.S.M. 1987 Supp., c. 15, s. 6.

R.S.M. 1987 Supp., c. 15, s. 5; S.M. 1989-90, c. 17, s. 2.

3            Repealed.

S.M. 1989-90, c. 17, s. 3.

4(1)         Repealed, S.M. 1989-90, c. 17, s. 4.

4(2) and (3) Repealed, R.S.M. 1987 Supp., c. 15, s. 8.

R.S.M. 1987 Supp., c. 15, s. 7; S.M. 1989-90, c. 17, s. 4.

5            Repealed.

S.M. 1989-90, c. 17, s. 5.

6            Repealed.

S.M. 1989-90, c. 17, s. 6.

Records to be kept by Minister of Finance

7           The Minister of Finance shall keep a separate record indicating

(a) the total of all moneys paid to Manitoba Hydro under sections 11.1 and 11.3; and

(b) the total of all moneys paid by Manitoba Hydro to the government under sections 11.1 and 11.3.

R.S.M. 1987 Supp., c. 15, s. 9; S.M. 1989-90, c. 17, s. 7.

Subsec. 43(3) of Manitoba Hydro Act not to apply

8           Subsection 43(3) of The Manitoba Hydro Act does not apply to or in respect of any payment made under this Act, whether the payment is made by Manitoba Hydro to the government or made by the Minister of Finance to Manitoba Hydro.

Payments without further appropriation

9           Amounts required under this Act to be paid by the Minister of Finance to Manitoba Hydro shall be paid from the Consolidated Fund without any further or other appropriation by the Legislature.

10          Repealed.

S.M. 1989-90, c. 17, s. 8.

Application of Act to old foreign debt

11          Notwithstanding that this Act was not in force at the time that foreign debt was issued, it applies in respect of foreign debt whether it was issued before or after the coming into force of this Act.

Payments to or on behalf of Manitoba Hydro

11.1(1)     Where prior to April 1, 1987, the Minister of Finance has amortized in the accounts of the government unrealized losses or gains on any United States dollar denominated debt issue of Manitoba Hydro or of the government, the proceeds of which were advanced to Manitoba Hydro, and the maturity or redemption date thereof is on or after April 1, 1987, the minister, on the maturity or redemption of such a debt issue, shall, subject to subsection (2), pay to or on behalf of Manitoba Hydro the net amount amortized by the minister to assist Manitoba Hydro in paying the redemption amount in excess of the Canadian principal equivalent of that debt issue.

Excess amount less than amortized

11.1(2)     Where the excess amount under subsection (1) is less than the amount amortized for the debt issue, the minister shall only pay to or on behalf of Manitoba Hydro the amount of the excess.

Manitoba Hydro repayment

11.1(3)     Where the redemption amount of a debt issue referred to in subsection (1) is less than the Canadian principal equivalent for that debt issue, Manitoba Hydro shall pay to the Minister of Finance the amount of the difference between the redemption amount and the Canadian principal equivalent but that payment shall not exceed the amount amortized as an unrealized gain by the minister in respect of that issue.

R.S.M. 1987 Supp., c. 15, s. 10.

Additional foreign currency provision

11.2        With respect to foreign debt of Manitoba Hydro or of the government, the proceeds of which were advanced to Manitoba Hydro, outstanding on March 31, 1989, the Minister of Finance shall establish a provision in the accounts of the government equal to the fluctuation in the foreign currency value of such debt from the date of issue as determined by foreign exchange rates in effect on March 31, 1989.

S.M. 1989-90, c. 17, s. 9.

Payments to or on behalf of Manitoba Hydro

11.3(1)     With respect to any foreign debt issue of Manitoba Hydro or the government, the proceeds of which were advanced to Manitoba Hydro, where the maturity or redemption date thereof is on or after April 1, 1989, the minister, on the maturity or redemption of such a debt issue, shall, subject to subsection (2), pay to or on behalf of Manitoba Hydro the net amount provided by the minister pursuant to section 11.2 to assist Manitoba Hydro in paying the redemption amount in excess of the Canadian principal equivalent of that debt issue.

Excess amount less than provided

11.3(2)     Where the excess amount under subsection (1) is less than the amount provided for the debt issue, the minister shall pay to or on behalf of Manitoba Hydro only the amount of the excess.

Manitoba Hydro repayment

11.3(3)     Where the redemption amount of a debt issue referred to in subsection (1) is less than the Canadian principal equivalent for that debt issue, Manitoba Hydro shall pay to the Minister of Finance the amount of the difference between the redemption amount and the Canadian principal equivalent but that payment shall not exceed the amount provided as an unrealized gain by the minister in respect of that issue.

S.M. 1989-90, c. 17, s. 9.

Present value settlement

11.4        Notwithstanding the other provisions of this Act, the Minister of Finance may enter into an agreement with Manitoba Hydro

(a) fixing the present value of the government's liability to Manitoba Hydro under this Act; and

(b) providing for the payment to Manitoba Hydro of the amount so fixed on any terms and conditions that the Minister of Finance considers appropriate.

S.M. 1991-92, c. 40, s. 1.

Regulations

12          The Lieutenant Governor in Council may make regulations

(a) respecting the manner of accounting in the records of the government and of Manitoba Hydro for foreign debt, for the payments and deferral of payments under this Act and for the gains and losses on transactions related to foreign debt; and

(b) the procedures for making payments under this Act.