1. Who is developing the project? |
The project developer for RCPP’s renewable energy co-op's is IPC Energy, a one stop renewable energy project development and management company. For more information on IPC Energy please visit their website at: www.ipcenergy.ca
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2. How much is the minimum amount that can be invested in a co-op by an individual? |
Minimum investment in a co-op is $5,000 prior to being awarded a FIT contract and $25,000 minimum investment after a contract is awarded.
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3. Can I purchase memberships in more than one co-op? |
Yes, you can be a member and invest in multiple co-ops.
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4. Do I need to live in the area to be a member of a renewable energy co-op? |
You do not have to live in the same geographic area as the renewable energy co-op to invest in that renewable energy Co-op. It is very common for people to choose a co-op in an area close to them but it is not a requirement.
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5. Can I sell my membership? |
Your membership can be sold provided the person purchasing the membership complies with the co-ops by-laws and is approved by resolution of the board.
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6. Can a membership be shared between multiple people? |
You can purchase a membership with someone else however, one membership means one vote regardless of the amount invested.
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7. What happens if the project(s) do not get contacts from the Ontario Power Authority? |
Any project that does not successfully receive a FIT contact from the Ontario Power Authority will have to wait until the next window of applications opens to re-submit.
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8. What is an Offering Statement? |
An Offering Statement is required before significant capital can be raised for the co-ops. This capital is required for project development and construction. Once an Offering Statement is certified by the Financial Services Commission of Ontario, the co-op can sell securities such as shares, debentures or bonds to members and non-members. The Offering Statement discloses the risks of the investment and lays out the anticipated financials and business plan. This document is used by investors to assist in determining their decision to invest. An Offering Statement must be prepared and made available to each prospective investor before they purchase securities. The Offering Statement is roughly similar to a prospectus, which is receipted by the Ontario Securities Commission.
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9. Who is the Financial Services Commission of Ontario and why are they involved in co-ops? |
The Financial Services Commission of Ontario is a regulatory agency of the Ministry of Finance that regulates insurance, pension plans, loans and trust companies, credit unions, mortgage brokering, and co-op corporations in Ontario. For more information on FSCO please visit our governance page in the resources section of the website.
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10. Why use an Offering Statement? |
An offering statement is required for any co-op that intends to raise capital greater than $200,000 and as a tool to make informed investment decisions.
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11. I purchased a membership but at what point do I have to pay for my shares? |
When the offering statement is approved by FSCO and the co-operative receives a FIT contract from the OPA, then investors will be required to put 20% of the total share value they wish to invest into the co-operative. The co-operative will be allowed to use a portion of these funds as approved by FSCO in the initial development of the project, while the rest of these funds will be held in Escrow until such time as certain project conditions are met. Once the project receives a Notice to Proceed (to initate construction), then the balance of the share purchase price is due and payable to the co-operative.
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12. What is an Escrow account? |
An escrow account is a trust account held by a third party, in this case Canada Trust Co., as a protection to the shareholders. Should the project not receive Notice to Proceed or if the FIT contract was cancelled for some reason, then the money in the escrow account would be returned to the investors, thus protecting them from a catastrophic loss. There is a legal agreement between the co-operative and the trust company that stipulates the exact conditions for the release of the funds or for the return of the funds to the investors.
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13. How long do these projects typically take to develop? |
Typically a renewable energy project of this scale takes anywhere from two to three years to reach commercial operation.
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14. Is there an approval process for these projects? |
A Renewable Energy Approval (REA) is required for certain types of renewable energy projects. The REA is issued by the Ministry of Environment and to obtain an REA, the project must meet certain requirements, including but not limited to: Provincial set back and noise standards; Environmental impact studies; and, Consultation with the public, municipalities, Aboriginal communities and any other relevant stakeholders. For more information on REAs and the REA application process in Ontario, please consult the Ministry of Environment. There are a number of other permits and approvals that are required at a local, regional and provincial level as well.
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